1..Which of the following statements is not true regarding external commercial borrowing (ECB)?

  1. An external commercial borrowing

    (ECB) is an instrument used to facilitate the access to foreign money by Indian corporations and PSUs.

  2. It includes commercial bank loans, buyers” credit, suppliers” credit, and securitised instruments.
  3. ECBs can also be used for investment in stock market.

Select the correct answer using the code given below.
(a) 2 only
(b) 3 only

(c) 1 and 3 only
(d) None of the above

2..Consider the following statements with regard to SEBI:

  1. It has a function of protecting the investors from cheating and fraud.
  2. It facilitates development of the capital markets.
  3. It regulates the securities markets.
  4. All the listed companies have to follow the SEBI guidelines.
  5. It is a constitutional body.

Which of the above is/are correct?

(a)  1, 2 and 3 only

(b)  1, 2, 3 and 4 only

(c)  1, 2, 3 and 5 only

(d)  All of the above

3..With reference to the Infrastructure Debt Funds (IDFs), which of the following statement(s) is/are true?

  1. IDFs are investment vehicles which can

    be sponsored by commercial banks and Non-Banking Financial Companies in India.

  2. The domestic institutional investors especially insurance and pension funds can invest in the IDFs.
  3. A trust based IDFs are regulated by RBI, while a company based IDFs are regulated by SEBI.

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

4..What does venture capital mean?

(a)  A short-term capital provided to industries.

(b)  A long-term start-up capital provided to new entrepreneurs.

(c)  Funds provided to industries at times of incurring losses.

(d)  Funds provided for replacement and renovation of industries.

5..Optionally Fully Convertible Debentures – financial instrument – has been in news related to the Sahara case. Which of the following statements is/are true about this instrument?

  1. The holder can convert his debenture into equity share after stipulated time.
  2. This instrument does not yield interest in the initial period.
  3. When a holder of OFCDs applies for equity at a premium, no additional amount needs to be paid.
  4. This instrument has been banned in Indian capital market by SEBI due to complex nature of risk evaluation in it.

Select the correct answer using the code given below.
(a) 1, 2 and 3 only
(b) 3 and 4 only
(c) 2 and 4 only
(d) 2 and 3 only

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