CS Executive Securities Law and Capital Market MCQs For Dec 2024 Exam

CS Executive Securities Law and Capital Market MCQ : The Institute of Chartered Accountants of India (ICSI) conducts the CS executive exam for aspiring candidates willing to join their CS Executive program. In the CS executive exam, Securities Law and Capital Market is an important subject. The multiple-choice questions (MCQs) of Securities Law and Capital Market allow students to score good marks with accurate answers.

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CS Executive Securities Law and Capital Market MCQ Pattern

CS Executive Securities Law and Capital Market MCQ Sample Questions

1. Which year was the SEBI Act enacted? a) 1991 b) 1992 c) 1995 d) 1998

2. Under SEBI regulations, which of the following is NOT a recognized category of intermediaries? a) Stockbrokers b) Portfolio managers c) Foreign institutional investors d) Credit rating agencies

3. A public company must issue a prospectus to raise capital from the public under which Act? a) SEBI Act, 1992 b) Companies Act, 2013 c) Depositories Act, 1996 d) Indian Contract Act, 1872

4. Under SEBI (Prohibition of Insider Trading) Regulations, who is considered an 'insider'? a) Any stock market analyst b) Only directors of the company c) Any person who has access to unpublished price-sensitive information d) Shareholders with more than 10% holdings

5. Which of the following is NOT a method of delisting securities under SEBI regulations? a) Voluntary delisting b) Compulsory delisting c) Forced delisting d) Buyback delisting

Capital Market MCQs

1. Which of the following instruments is classified as a 'money market' instrument? a) Equity shares b) Debentures c) Treasury bills d) Bonds

2. Which of the following is the primary objective of the capital market? a) Mobilize savings for short-term financial needs b) Provide a platform for speculative trading c) Facilitate long-term investments d) Enable government borrowing

3. In the context of capital markets, the term 'book building' refers to: a) The process of maintaining financial records b) Determining the demand for shares during an Initial Public Offering (IPO) c) The valuation of a company’s assets d) Listing securities on the stock exchange Answer: b) Determining the demand for shares during an Initial Public Offering (IPO)
4. Which of the following is a function of the primary market? a) Trading of securities b) Issuance of new securities c) Providing margin loans d) Regulation of stock exchanges

5. Which stock exchange in India is recognized as the first demutualized exchange? a) Bombay Stock Exchange (BSE) b) National Stock Exchange (NSE) c) Calcutta Stock Exchange (CSE) d) Delhi Stock Exchange (DSE)

6. Primary capital markets are the platform where:
7. a) New securities are issued
8. b) New securities are sold
9. c) New securities are borrowed
10. d) Both (a) and (b)

7. Which of the succeeding administrations issues the guidelines for global trade?
8. a) World Bank
9. b) World Trade Organization
10. c) Foreign Exchange Dealers’ Association
11. d) Directorate General of Foreign Trade