Module 2 (INDIAN FINANCIAL MARKETS)

Market help to link the savers and the investors by mobilizing fund between them ____

Financial Market comprises of:

_____ Market deals with short term lending and borrowing of funds.

______ market deals with long term transfer of funds using debt and equity.

______ regulates the banking system and money market in India.

Functions of RBI include:

Payment Banks can perform which of the following activities:

_____ Securities Market have interdependent and inseparable segment

_____ market creates a financial asset and ——– market makes them marketable.

The term on which securities is issued is determined by :

_____ market enables the mitigating risk of adverse price movement in commodity to producer and user.

_____ market help to hedge the risk of price movement for companies dependent on import as well as export.

The currency quoted first in the currency pair is called ——– and currency quoted next is called ——-.

______ regulates the Insurance Sector in India.

______ regulates the Pension Market.

______ regulates the Capital Market.

Securities Exchange Board of India is a:

If NSE Index falls 10 per cent before 1pm on any trading day, trading will halt for _____

If NSE Index falls 10 percent between 1 pm and 2:30 pm, trading will halt for _____

If NSE Index falls 15 per cent movement before 1pm—trading will halt for

If NSE Index falls 15 per cent movement between 1 pm and 2:30 pm, trading will halt for _____

If NSE Index has 20 per cent movement any time of the day—trading halt for the

______ refers to the market where equity or debt funds are raised by companies from ‘outside’ investors through an offer of securities.

Which of the following are functions of primary market?
(I) Enables participation of a wider group of investors.
(II) As new subscribers of equity capital come in, the stakes of existing shareholders reduces and the ownership of the business becomes more broad-based and diversified
(III) Primary markets provide an exit option for promoters, private and inside investors who subscribed to the initial capital and early requirements for capital of a business
(IV) Facilitates buy and selling between the investors of securities directly through exchange.

Which of the following are ways of issuance of capital?

Securities are issued to the members of the public, and anyone eligible to invest can participate in the issue, what type of issue is this?

Securities are issued to a select set of investors who can bid and purchase the securities on offer, what type of securities issue is this?

A private placement of securities by a listed company is called a—–

Securities are issued to existing investors as on a specific cut-off date, enabling them to buy more securities at a specific price —–

Securities are issued to existing investors as on a specific cut-off date, get an allotment of additional shares without any consideration.

Companies may make an issue of shares where the government offers a portion of the shares held by them to the public. This is called a —-

The Primary Markets are regulated by—

The First Public Offer of Shares made by a company is called an —–

An IPO can be a

Existing shareholders such as promoters or financial institutions offer a part of their holding to the public investors, it is called —-

Who decide the price at which the shares will be allotted to investors in a public issue?

Methods used to determine the price of issue:

A public issue will be open for a minimum of _____ working days and a maximum of _____ working days in the case of fixed price issues.

For book-built issues, the offer will be open for a period between ___ to ___ days extendable by ___ days in case of a revision in the price band.

ASBA means:

____ is an application for subscription to an issue containing an authorization to the investors’ bank to block the application money in the bank account and release funds only on allotment.

____ means the bids made at the cut-off price and higher were for a higher number of shares than what was offered, if subscriptions are lower than the offered number of shares, it is ____

Minimum subscription clause for the issue of shares is of ___% of issue value.

Advantage of Private Placement:

According to section 67(3) of the companies act of 2013, an offer to subscribe to securities is made to less than ____ people is called the Private Placement of securities.

Qualified Institutional Buyers (QIBS) include:

____ is an issuance of fresh shares by a company or an offer for sale by a promoter or promoter group to QIBS to meet the minimum shareholding requirement specified by stock exchanges in their listing requirements.

____ is where securities once issued are bought and sold between investors.

Functions of Secondary Market:
(A) Secondary markets provide liquidity and marketability to existing securities.
(B)Secondary markets enable price discovery of traded securities
(C)Market Prices provide instant information about issuing companies to all market participants.
(D) Secondary Market trading data is used to generate benchmark indices that are widely tracked in the country
(E)Stock Markets function as markets for efficient governance by facilitating changes in corporate control

Which of the following are participants of Secondary Market:

____ provides a platform for investors to buy and sell securities from each other in an organized and regulated manner.

The trading members of stock exchanges are also called stock brokers :

If investors buy and sell shares among themselves, such trades are called ____

UCC means

Secondary Market transactions have distinct phases which are:

____ is the process of identifying what is owed to the buyer and seller in a trading transaction.

____ is the mechanism of settling the obligations of counterparties in a trade.

Settlement System in India is:

____ completes the settlement by paying funds to sellers and delivering securities to buyers.

Securities are held in dematerialised form in ____

_____ are institutional intermediaries, who are authorized to hold funds and securities on behalf of large institutional investors such as banks, insurance companies, mutual funds, and foreign institutional investors.

Secondary Markets are regulated under the provisions of ____

____ of a company is the number of shares outstanding multiplied by the market price per share.

In terms of return performance, large cap stocks tend to be less volatile than mid-cap stocks.

In Bull Markets, mid-caps tend to run ahead of large caps, and in bear markets, they tend to fall more than large caps.

If large-cap stocks represent liquidity and stability, then mid-caps represent momentum and opportunity.

____ of a stock indicates how many trading activity took place in it on a given business day.

____ tracks the market movement by using the prices of a small number of shares chosen as a representative sample.

The Sensex has been computed as the market cap-weighted index of ____ chosen stocks on the BSE.

Importance of Stock Market indices:

If there is an abnormal price movement in an index, defined in percentage terms, the exchange can suspend trading. This is called hitting the ____

The rights issue is kept open for a period not less than ___ days and not exceeding ___ days during which investors subscribe to the shares.

If Rights Holder sell their entitlement to other, it is called ____

____ are the share of the profits of the company received by its shareholders.

____ is a corporate action where the face value of the existing shares is reduced in a defined ratio.

In the case of a Stock Split the value of the investor’s holding will change.

Companies consider a ____ if the price of the shares in the secondary markets is seen to be very high and therefore restricting the participation by investors.

A Share Split leads to greater liquidity in the market.

An Unlisted Company cannot make a public issue of debentures. State whether it is True or False.

An investor bids Rs. 45 in a book-built public issue where the cut-off is discovered as Rs. 50. The investor will ____.

The Share Capital of a company will not increase when there is a ______