NISM mutual fund distributor pdf: Nism Va Chapter 4: Legal And Regulatory Framework Mcqs
MCQ on 4.1, 4.2-Role of Regulators in India, Roles of SEBI
1.Which regulatory body in India is responsible for regulating the banking system and money markets?
a) Reserve Bank of India (RBI)
b) Securities and Exchange Board of India (SEBI)
c) Insurance Regulatory and Development Authority of India (IRDAI)
d) Pension Fund Regulatory and Development Authority of India (PFRDA)
2. Which regulatory body in India is responsible for regulating the securities markets?
a) Reserve Bank of India (RBI)
b) Securities and Exchange Board of India (SEBI)
c) Insurance Regulatory and Development Authority of India (IRDAI)
d) Pension Fund Regulatory and Development Authority of India (PFRDA)
3. Which regulatory body in India is responsible for regulating the insurance market?
a) Reserve Bank of India (RBI)
b) Securities and Exchange Board of India (SEBI)
c) Insurance Regulatory and Development Authority of India (IRDAI)
d) Pension Fund Regulatory and Development Authority of India (PFRDA)
4. Which regulatory body in India is responsible for regulating the pension market?
a) Reserve Bank of India (RBI)
b) Securities and Exchange Board of India (SEBI)
c) Insurance Regulatory and Development Authority of India (IRDAI)
d) Pension Fund Regulatory and Development Authority of India (PFRDA)
5. Which ministry in India has the regulatory bodies such as RBI, SEBI, IRDAI, and PFRDA under its purview?
a) Ministry of Finance
b) Ministry of Commerce and Industry
c) Ministry of Home Affairs
d) Ministry of External Affairs
6. Which regulatory body in India is responsible for regulating the securities markets?
a) Reserve Bank of India (RBI)
b) Insurance Regulatory and Development Authority of India (IRDAI)
c) Securities and Exchange Board of India (SEBI)
d) Pension Fund Regulatory and Development Authority of India (PFRDA)
7. What is the main objective of SEBI?
a) Regulating the banking system
b) Protecting the interests of investors in securities
c) Regulating the insurance market
d) Regulating the pension market
8. Which entities are regulated by SEBI?
a) Banks and financial institutions
b) Mutual funds, depositories, custodians, and registrars and transfer agents (RTAs)
c) Insurance companies
d) Pension funds and retirement plans
9. What are the three important aspects covered by SEBI’s regulations?
a) Risk management, liquidity, and capital adequacy
b) Disclosure by issuers, efficiency of transactions, and low transaction costs
c) Customer protection, fair practices, and transparency
d) Market surveillance, enforcement, and supervision
10. Which activity is regulated by SEBI to prevent deliberate speculation in stock markets?
a) Insider trading
b) Excessive risks taken by mutual funds
c) Inadequate collateral by issuers of debt securities
d) None of the above
11. What happens if the activities mentioned in the passage go unchecked?
a) Increase in investment activity
b) Drying up of financial resources and investment activity
c) Decrease in transaction costs
d) Boost in economic growth
12. Which market does SEBI primarily regulate?
a) Banking market
b) Insurance market
c) Mutual fund market
d) Securities market
13. What is the purpose of SEBI’s regulations on disclosures by issuers of securities?
a) To ensure efficient transactions in the securities markets
b) To protect the interests of investors in securities
c) To promote the development of the securities market
d) To regulate the mutual fund market
14. Which regulatory body regulates the insurance market in India?
a) Reserve Bank of India (RBI)
b) Insurance Regulatory and Development Authority of India (IRDAI)
c) Securities and Exchange Board of India (SEBI)
d) Pension Fund Regulatory and Development Authority of India (PFRDA)
15. Which activities may lead to a loss of trust among investors in the functioning of markets?
a) Low transaction costs
b) Efficient transactions in the securities markets
c) Insider trading and excessive risks
d) Disclosures by issuers of securities
16. Is there any limit for a mutual fund scheme to invest in units of REIT and InvIT issued by a single issuer?
a) Yes, it is limited to 10% of its NAV
b) Yes, it is limited to 5% of its NAV
c) No, there is no such limit
17. How many nominees are entitled to the units in the event of the investor’s demise?
a. Only one nominee.
b. Up to 3 nominees.
c. Up to 5 nominees.
d. All the investors in the scheme.
Answers
- a) Reserve Bank of India (RBI)
- b) Securities and Exchange Board of India (SEBI)
- c) Insurance Regulatory and Development Authority of India (IRDAI)
- d) Pension Fund Regulatory and Development Authority of India (PFRDA)
- a) Ministry of Finance
- c) Securities and Exchange Board of India (SEBI)
- b) Protecting the interests of investors in securities
- b) Mutual funds, depositories, custodians, and registrars and transfer agents (RTAs)
- b) Disclosure by issuers, efficiency of transactions, and low transaction costs
- a) Insider trading
- b) Drying up of financial resources and investment activity
- d) Securities market
- b) To protect the interests of investors in securities
- b) Insurance Regulatory and Development Authority of India (IRDAI)
- c) Insider trading and excessive risks
- b) Yes, it is limited to 5% of its NAV
- b. Up to 3 nominees.
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PDF details
| Pdf quality | Excellent |
| Pdf size | 173 kb |
| Number of questions | 140 |
| Topics covered | Chapter 4 all topics |
| Questions type | Multiple Choice Questions |
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