Explanation:

The derivative markets have started the process of moving from cash settlement to physical settlement, following the criteria specified in the relevant SEBI circulars.

Explanation:

Financial institutions may issue equity or debt securities to fulfill their capital needs beyond the typical funding sources of deposits and government grants. The correct option is “Only 2 & 3,” which includes financial institutions and banks.

Explanation:

Certificates of Deposit (CDs) are issued by banks, non-banking finance companies, and financial institutions, which makes option (b) the correct answer. These financial instruments represent time deposits with fixed interest rates and specified maturity dates, allowing institutions to raise short-term funds from the market.

Explanation:

The correct answer is “Only 1 & 3,” as these are the common types of margins collected in the futures market. The initial margin is the upfront amount required, and the exposure margin is collected based on the potential exposure of the position.

Explanation:

An open-ended equity scheme investing in line with an investment theme such as housing or infrastructure is categorized as a Thematic Fund. Thematic funds focus on specific investment themes or sectors, aligning their portfolio with a particular trend or idea.

Explanation:

An open-ended scheme investing in equity, arbitrage, and debt is known as an Equity Savings Fund. Equity Savings Funds typically allocate their assets among equity, arbitrage opportunities, and debt instruments, offering a balanced approach to investors.

Explanation:

Systematic Transfer Plans (STP) permit investors to periodically transfer a specified sum from one scheme to another within the same fund house. STP allows investors to manage their investments by systematically moving funds between different schemes based on their financial objectives and market conditions.

Explanation:

Professional Clearing Members (PCMs) are entities that function as clearing members but not as trading members. They are typically banks or custodians that exclusively perform clearing functions.

Explanation:

Exchange Traded Funds (ETFs) combine features of an open-ended fund and a stock. ETFs are traded on stock exchanges like individual stocks, but they represent a diversified portfolio of assets similar to open-ended mutual funds.

Explanation:

Units are only issued in domestic markets. Therefore, option (c) is the correct answer. Units typically refer to units of mutual funds or other investment schemes that are offered and traded in the domestic market.

Explanation:

An open-ended mutual fund does not have a fixed maturity date. Open-ended mutual funds allow investors to buy or redeem units at any time, and they don’t have a predetermined maturity date.

Explanation:

In the modern securities markets, securities are held in a dematerialized form in the depository. Deposition refers to the process of converting physical securities into electronic or dematerialized form for ease of trading and settlement.

Explanation:

The first public offer of shares made by a company is called an Initial Public Offer (IPO). An IPO is the process through which a company offers its shares to the public for the first time, allowing it to raise capital by issuing new shares to investors.

Explanation:

The financial results of a company reflecting losses and a subsequent drop in the price of its equity share illustrate the role of the market as an “Information Signalling through prices.” Therefore, option (d) is the correct answer. In this scenario, market prices convey information about the company’s performance and contribute to signaling the prevailing conditions to investors.

Explanation:

The income of a mutual fund, registered with SEBI, is completely exempt from tax. Mutual funds in India enjoy tax exemptions on their income, making them an attractive investment option for many investors.

Explanation:

Corporate bonds have credit risk or the risk of default. Corporate bonds represent debt issued by companies, and the credit risk associated with them pertains to the possibility of the issuing company defaulting on its debt obligations.

Explanation:

Bankers to the issue must have collection branches in the mandatory centers as specified by the regulations. Bankers to the issue play a crucial role in the process of collecting applications and funds from investors during the issuance of securities.

Explanation:

Bonds (G-secs) and Treasury bills are types of securities issued by the Central Government. These government securities serve as instruments for raising funds and managing the government’s financial requirements.

Explanation:

Systematic Withdrawal Plans (SWP) allow investors to make periodic redemptions from their existing mutual fund investments at the prevailing Net Asset Value (NAV)-related price. SWP provides a systematic way for investors to withdraw a specific amount or a fixed number of units from their mutual fund investments at regular intervals.

Explanation:

SR equity refers to the equity share of an issuer that possesses superior voting rights compared to all other equity shares issued by the same issuer.These shares often grant their holders increased voting power or privileges in certain decisions affecting the company.

Explanation:

Algorithmic Trading is characterized by the speed and accuracy of execution, as the order is placed instantly and accurately as soon as the required conditions are met. Algorithmic trading involves using computer algorithms to automate the trading process, allowing for efficient and timely execution of orders.

Explanation:

Derivatives are typically used for the purpose of hedging, speculation, and arbitrage.  Investors and businesses use derivatives to manage risks (hedging), take speculative positions on price movements, and capitalize on price discrepancies in different markets (arbitrage).

Explanation:

The functions of the primary market include tapping larger markets for capital, fostering a competitive process, and diversifying ownership. In the primary market, new securities are issued, and these functions contribute to the efficient allocation of capital and the development of financial markets.

Explanation:

Cyber Security encompasses all tools, measures, and processes intended to prevent cyber-attacks. It involves the protection of computer systems, networks, and data from unauthorized access, attacks, and damage to ensure the confidentiality, integrity, and availability of information.

Explanation:

Companies enter into an underwriting agreement with institutions at the time of a public offer of shares to subscribe to the shares of the company if they remain unsubscribed by the investors. Underwriting agreements help ensure the successful completion of a public offering by providing a commitment from the underwriter to purchase any remaining shares.

Explanation:

The issue of convertible debentures involves the conversion of outstanding debt into equity at a specific date, price, and time. Convertible debentures allow bondholders to convert their debt holdings into equity shares of the issuing company under predefined conditions.

Explanation:

Trading members and clients are sent alerts, and fresh positions are disallowed in a derivative market. This precautionary measure is implemented to manage risks and ensure compliance with regulatory requirements.

Explanation:

The Ministry of Corporate Affairs regulates the functioning of the corporate sector. The ministry oversees and regulates various aspects of corporate governance, compliance, and legal matters related to companies in the corporate sector.

Explanation:

The constituents of the secondary market include Asset Management Companies (AMCs), investment companies, and individual investors. The secondary market is a platform where existing financial instruments, such as stocks and bonds, are bought and sold among investors. It involves various participants, including asset management companies, investment companies, and individual investors.

Explanation:

The statement is FALSE. Custodians typically do not act as a single point of contact for issuers during a new issue of securities. Their primary role is to safeguard and administer financial assets on behalf of clients, rather than serving as a contact point for issuers during new securities issuances.

Explanation:

Investors need a broking account and a demat account to invest in Exchange Traded Funds (ETFs). A broking account is used for trading, while a demat account holds the securities in electronic form, and both are necessary for ETF investments.

Explanation:

Companies that are funded by equity are known as Joint Stock Companies. Joint Stock Companies issue shares of stock to raise capital, and ownership is represented by the ownership of these shares.

Explanation:

Trades take place on a particular day and are settled after two business days. The settlement period, known as T+2 (trade date plus two business days), is a standard practice in many financial markets where transactions are completed two business days after the trade date.

Explanation:

The issuance of capital in the primary market can be classified as a public issue, private placement, or preferential issue. These are different methods through which companies can raise capital by issuing securities in the primary market.

Explanation:

The BSE (Bombay Stock Exchange) has established a Department of Investors Services (DIS). The DIS is dedicated to providing services and assistance to investors related to their investments and trading activities on the Bombay Stock Exchange.

Explanation:

Savings are linked to investments through a variety of intermediaries using a range of complex financial products. Various intermediaries facilitate the connection between savings and investments through the creation and management of complex financial products.

Explanation:

The members of the Insolvency and Bankruptcy Board of India (IBBI) include representatives from the Ministry of Finance, Ministry of Corporate Affairs, and the Reserve Bank of India (RBI). The IBBI is responsible for overseeing and regulating the insolvency and bankruptcy processes in India.

Explanation:

The option buyer has the right but no obligation regarding buying or selling the underlying asset. Option buyers have the choice to exercise their option or let it expire, depending on market conditions, without being obligated to take any action.

Explanation:

Brokers to the issue are responsible for procuring subscriptions to the issue. They play a role in collecting applications and subscriptions from investors during a securities offering.

Explanation:

An option is a contract that gives its buyers the right, but not the obligation, to buy or sell the underlying asset on or before a specified date at a predetermined price, for a premium. Options provide flexibility for the buyer without imposing an obligation to execute the trade.

Explanation:

The security has to be liquid, provide activity information, and provide financial performance information to list on a stock exchange. These criteria help ensure that the security meets certain standards and requirements for trading on the exchange.

Explanation:

The settlement price for determining daily mark-to-market margins for a futures transaction is the weighted average price of the last 30 minutes of trading. This calculation helps reflect the most representative market conditions during the closing period.

Explanation:

The statement is FALSE. While debt investors are lenders to the business, equity investors are not lenders; instead, they are partial owners of the business.

Explanation:

The rights shares are offered to existing shareholders in a proportion approved by the board of a company. Rights shares give existing shareholders the privilege to buy additional shares in proportion to their current holdings.

Explanation:

The soft copies of the offer document are available on the SEBI website and on the websites of the lead manager to the issue. The offer document contains essential information about a securities offering and is made available digitally for public access on relevant platforms.

Explanation:

The pre-issue work of the RTA (Registrar and Transfer Agents) includes designing application forms and other issue material, finalizing the procedure for bidding during the issue, and collecting and reporting numbers and information. Registrar and Transfer Agents play a crucial role in managing various aspects of a securities issue, from design to the finalization of procedures and data collection.

Explanation:

Money market securities include instruments for raising and investing funds for periods ranging from one day up to one year. The money market deals with short-term borrowing, lending, buying, and selling of financial instruments, providing liquidity to the financial system.

Explanation:

Institutional investors manage their returns and risk through formal processes for evaluating and selecting the securities they buy, reviewing and monitoring what they hold, and formally managing the risk, return, and holding periods of the securities they hold. These processes are crucial for effective portfolio management and aligning investments with the investor’s goals and risk tolerance.

Explanation:

Brokers are the constituents that execute transactions in mutual fund securities. Brokers facilitate the buying and selling of mutual fund units on behalf of investors in the secondary market.

Explanation:

The securities are issued in the name and under the common seal of the issuer. The common seal is a formal device used by the issuer to authenticate and authorize the issuance of securities in its name.

Explanation:

A Unique Client Code (UCC) has to be generated by the broker for each client. The UCC is a unique identification code assigned to each client by the broker, facilitating the tracking and management of individual client accounts.

Explanation:

Raising capital for a company may also be conducted through a syndicate of institutional investors who buy equity or debt securities through a private placement. In a private placement, securities are offered directly to a select group of investors rather than being made available to the general public.

Explanation:

The Net Asset Value (NAV) is the current value of a mutual fund unit. NAV represents the per-unit value of the mutual fund’s assets minus its liabilities and is calculated daily.

Explanation:

Relative valuation models try to find the pricing of something similar to the asset being valued. These models compare the valuation of an asset to similar assets or market benchmarks to determine its fair value.

Explanation:

Active orders are orders to buy or sell at the prevailing market price. Active orders are executed immediately at the current market price.

Explanation:

Mutual Fund Utilities (MFU) is a shared service platform for mutual fund transactions promoted by the mutual fund industry. MFU provides a common platform for investors to transact in multiple mutual funds through a single window.

Explanation:

A Fund of Funds portfolio is not made up of securities but is a portfolio of other funds. Fund of Funds invests in multiple mutual funds rather than individual securities, providing investors with diversified exposure to different funds through a single investment.

Explanation:

An American option can be exercised at any time before or on the expiry date. This distinguishes American options from European options, which can only be exercised at expiration.

Explanation:

Forwards are over-the-counter (OTC) derivatives that enable buying or selling an underlying asset on a future date at an agreed-upon price. Forward contracts are customized agreements between two parties to trade a specific asset at a predetermined future date and price.

Explanation:

A mutual fund cannot assure or guarantee the rate of return. Mutual funds are subject to market risks, and the returns on investments are influenced by market conditions.

Explanation:

Passive mutual funds, also known as index funds or exchange-traded funds (ETFs), do not seek to beat or outperform a specific benchmark. Instead, they aim to replicate the performance of a specific market index, such as the S&P 500 or the NSE Nifty. The fund manager of a passive fund essentially tries to mirror the composition and returns of the chosen benchmark.

Passive funds are designed to provide investors with returns that closely align with the overall market or a specific sector without actively selecting individual securities. This is in contrast to active mutual funds (Option c), where fund managers aim to outperform the benchmark by actively selecting and managing a portfolio of securities.

Explanation:

Well-developed securities markets are typically associated with strong economic growth. A robust securities market provides a mechanism for companies to raise capital through the issuance of stocks and bonds. This, in turn, facilitates investment in productive activities, leading to business expansion, innovation, and increased economic output. Additionally, an active securities market can attract both domestic and foreign investors, fostering liquidity and efficiency in the capital allocation process.

Explanation:

1. Stock Exchanges: These are platforms where buyers and sellers come together to trade financial instruments such as stocks, bonds, and derivatives.
2. Depositories: These institutions facilitate the holding and transfer of securities in electronic form. They work to dematerialize physical securities and maintain electronic records of ownership.
3. Clearing Corporations: These entities ensure the smooth settlement of trades executed on stock exchanges. They act as intermediaries, guaranteeing the fulfillment of trades, managing risks, and facilitating the transfer of securities and funds between buyers and sellers.

Explanation:

Explanation:

Explanation:

A public issue refers to the sale of securities to the general public, and it typically involves an Initial Public Offering (IPO) by a company. When a public issue is conducted, the offer period during which investors can subscribe to the securities is specified. According to the Securities and Exchange Board of India (SEBI) regulations, a public issue must be open for a minimum of 3 working days and a maximum of 10 working days.

The other options mentioned are:

• Private placement (Option b): Involves the sale of securities to a select group of investors without a public offering.
• Preferential issue (Option c): Involves issuing securities to a specific group of investors, but it may not necessarily be open to the public.
• Bonus issue (Option d): Involves the issuance of additional shares to existing shareholders without any consideration.

Explanation:

Investors who prefer to invest in securities markets and other assets but want a professional to create and manage their portfolio often choose mutual funds. Mutual funds pool money from multiple investors and invest in a diversified portfolio of stocks, bonds, or other securities. Professional fund managers make investment decisions on behalf of the investors, aiming to achieve the fund’s stated investment objectives.

Options (Option b), warrants (Option c), and futures (Option d) are financial instruments that involve specific rights and obligations related to the buying and selling of assets but don’t inherently involve professional portfolio management by a third party. Mutual funds provide a convenient way for investors to access professional management and diversification without having to actively manage their investments.

Explanation:

Inflation is defined as the rise in the price level of goods and services over time. It means that, on average, the cost of living increases, and each unit of currency can buy fewer goods and services. Inflation is often expressed as a percentage, representing the annual rate of increase in the general price level.

The other terms mentioned are:

• Deflation (Option a): The opposite of inflation, deflation refers to a decrease in the general price level of goods and services.
• Surplus (Option c): In an economic context, surplus refers to an excess or an amount remaining after all needs have been met.
• Deficit (Option d): In an economic context, deficit refers to a situation where expenditures exceed revenues.

Explanation:

• Options (Option b): Options are contracts that give the holder the right (but not the obligation) to buy or sell an underlying asset at a predetermined price within a specified period. There are two types of options: call options (which give the right to buy) and put options (which give the right to sell).
• Futures (Option c): Futures contracts obligate the buyer to purchase, or the seller to sell, an underlying asset at a predetermined price on a specified future date. Futures are standardized contracts traded on an exchange.

Warrants (Option a) are a type of financial instrument, but they are not typically classified as exchange-traded derivatives.

Explanation:

A bonus issue refers to the issuance of additional shares to existing shareholders without any consideration. In a bonus issue, the company allocates extra shares to its existing investors based on their current shareholdings. The purpose of a bonus issue is to reward existing shareholders, and it does not involve any cash payment or additional cost to the shareholders.

The other types of issuances mentioned are:

• Rights issue (Option b): Involves offering additional shares to existing shareholders at a predetermined price, but shareholders need to subscribe and pay for the new shares.
• Public issue (Option c): Involves offering shares to the general public through a prospectus.
• Preferential issue (Option d): Involves issuing shares to a specific group of investors at a predetermined price, but it is not necessarily free.

Explanation:

The statement is true. The top-down approach is an investment strategy that begins with an analysis of macroeconomic factors, such as economic indicators, interest rates, and geopolitical trends. After identifying broad macro trends, investors using the top-down approach then move to more specific levels, selecting sectors and individual stocks that are expected to benefit from these identified trends. This approach starts with a high-level view of the economy and narrows down the investment choices based on the analysis of macro factors.

Explanation:

The Securities Contracts (Regulation) Act, 1956, is administered by the Securities and Exchange Board of India (SEBI). SEBI is the regulatory authority in India that oversees and regulates the securities market, including stock exchanges and various market participants. It plays a crucial role in ensuring the integrity, transparency, and efficiency of the securities market.

The other options mentioned are:

• RBI (Option a): The Reserve Bank of India, which is the central banking institution in the country, but it is not the primary regulator for securities markets.
• DEA (Option b): The Department of Economic Affairs, a part of the Ministry of Finance, deals with economic policies and issues, but it is not the regulator for securities markets.
• MCA (Option d): The Ministry of Corporate Affairs, responsible for the administration of corporate affairs and corporate laws in India.

Explanation:

Direct Market Access (DMA) is a service that allows institutional clients to connect their orders directly to the exchange’s order book. With DMA, institutional investors can send orders to the exchange without the need for an intermediary, such as a broker, to manually execute the trades. This direct connection provides faster order execution and greater control over the trading process.

The other options mentioned are:

• Broker (Option b): A broker traditionally acts as an intermediary between the investor and the exchange, executing trades on behalf of the client.
• Issuer (Option c): Refers to the entity, such as a company or government, that initially offers and sells securities to the public.
• SEBI (Option d): The Securities and Exchange Board of India, which is the regulatory authority overseeing the securities market in India.

Explanation:

Mark to Market Margin (MTM Margin) is computed at the end of each trading day by comparing the transaction price of a security with its closing price. This process involves adjusting the margin requirements based on the daily market movement. If the market value of the security has increased, the investor receives funds; if it has decreased, the investor may be required to deposit additional funds to cover the potential loss.

Extreme Loss Margin (Option b), Value at Risk (VaR) Margin (Option c), and Cross-Margining (Option d) are also risk management concepts in financial markets, but they are not specifically related to the daily adjustment of margin requirements based on the market value of securities.

Explanation:

Mutual funds provide a convenient way for investors to invest in different asset classes. A mutual fund pools money from multiple investors and invests in a diversified portfolio of stocks, bonds, or other securities. This diversification allows investors to spread their risk across various assets, reducing the impact of poor performance in any single investment.

Explanation:

Mutual funds, financial institutions, scheduled commercial banks, and Foreign Institutional Investors (FIIs) fall under the category of Qualified Institutional Buyers (QIBs). QIBs are a class of institutional investors that are deemed to possess the financial sophistication and expertise to participate in certain securities offerings, including initial public offerings (IPOs) and other qualified placements.

The other categories mentioned are:

• NII (Non-Institutional Investors): Typically includes individual investors who do not fall into the QIB category.
• FI (Financial Institutions): This is a broad category that includes various financial entities.

Explanation:

If a Merchant Banker has been mandated to provide advisory services to any Government entity, the relevant guidelines to be kept in mind are the Dept. of Public Enterprises (DPE) Guidelines. These guidelines are specific to the functioning of public enterprises in India.

While SEBI Disclosure and Investor Protection (DIP) Guidelines and RBI Guidelines are also important in the context of securities and financial markets, when advising government entities, adherence to the DPE Guidelines becomes crucial.

Explanation:

No issuer shall make a public issue or rights issue of specified securities unless it has entered into an agreement with a depository for dematerialization of specified securities already issued or proposed to be issued. In the context of securities, a depository is an organization that holds and facilitates the electronic (dematerialized) form of securities, allowing for easier and more efficient trading and settlement.

Explanation:

In order to maintain the highest level of professional judgment, honesty, and ethics, SEBI (Securities and Exchange Board of India) requires merchant bankers to follow the Code of Conduct as specified in the SEBI Regulations. This code outlines the principles and standards of behavior expected from merchant bankers in their dealings with clients, investors, and the market.

Explanation:

According to the information provided, for an open offer above Rs. 1000 crore but less than Rs. 5000 crore under the SEBI (Substantial Acquisition of Shares and Takeovers-SAST) Regulations, the non-refundable fees payable to SEBI is Rs. 1.25 Crore plus 0.03125% of the portion of the offer size in excess of Rs. 1000 Crore.

Explanation:

A person, such as a Category III foreign portfolio investor, shall not be deemed to be a promoter merely because they hold 10% or more of the equity share capital of the issuer. This provision is in line with regulatory considerations and definitions related to promoters in the context of securities regulations.

Promoter status is often relevant in regulatory frameworks, and holding a certain percentage of equity alone may not automatically confer promoter status on an entity. This provision allows for clarity in identifying and categorizing promoters in the context of securities regulations.

Explanation:

A Merchant Banker must hold a valid SEBI (Securities and Exchange Board of India) Certification of Registration to act as a lead manager in an issue. The SEBI regulations require merchant bankers to obtain registration from SEBI, and this registration is necessary for them to perform various functions related to public issues, including acting as lead managers.

If a merchant banker associated with the issue does not hold a valid SEBI Certification of Registration, they would not be eligible to act as a lead manager in the issue.

Explanation:

According to SEBI SAST (Substantial Acquisition of Shares and Takeovers) Regulations, the open offer for acquiring shares made by the acquirer shall be for at least 26% of the total shares of the target company as of the 10th working day from the closure of the tendering period. This means that the acquirer, as per the regulations, is required to make an open offer to acquire at least 26% of the total shares of the target company from the existing shareholders.

Explanation:

Under the SEBI Complaints Redress System (SCORES), SEBI addresses investor complaints related to securities market issues. However, there are certain matters that SEBI may not consider under SCORES. These include:

a) Seeking explanation for non-trading of shares or illiquidity of shares b) Allegations without supporting documents c) Not satisfied with trading price of shares of the companies

Investors are encouraged to submit complaints with supporting documents and specific details related to violations of securities laws or regulations. General dissatisfaction with trading prices or unsupported allegations may not be considered under SCORES.

Explanation:

When a transaction is done on the stock exchange, the buyers and sellers may not be in direct contact with each other. Stock exchanges operate as organized and centralized marketplaces where securities are bought and sold. The trading process on a stock exchange involves intermediaries such as brokers who execute trades on behalf of buyers and sellers.

In contrast, in over-the-counter (OTC) markets (Option b), transactions occur directly between parties without the need for a centralized exchange. OTC markets are decentralized, and participants may negotiate and execute trades directly with each other.

Explanation:

As per the SEBI SAST (Substantial Acquisition of Shares and Takeovers) Regulations, an acquirer and persons acting in concert with him, who have made a public announcement under the regulation to acquire shares of a target company, shall not be entitled to acquire any shares of the target company for a period of Six Months after completion of the open offer except pursuant to another voluntary open offer.

Explanation:

In soft underwriting, the underwriter agrees to buy the shares at a later stage, typically after the pricing process is complete. This arrangement is beneficial when investors do not pay up on allotment. Soft underwriting provides a safety net for the issuer, ensuring that the shares are ultimately subscribed, even if the initial allotment faces payment issues from investors.

Explanation:

This means that these documents can be sent to the investors either by registered post (option b) or by certificate of posting (option c). Using registered post provides a higher level of security and tracking compared to ordinary post. Certificate of posting is a simpler proof of mailing, acknowledging that the sender has posted the documents, but it does not offer the same level of security and tracking as registered post. The choice between these options depends on the preferences and requirements of the issuer or the company handling the dispatch of these documents.

Explanation:

Exchange Traded Fund (ETF) is a fund that can invest in either all of the securities or a representative sample of securities included in the index. ETFs are investment funds traded on stock exchanges, similar to individual stocks. They are designed to track the performance of a specific index, commodity, bond, or a basket of assets.

Unlike mutual funds, which may have restrictions on when and how investors can buy or sell shares, ETFs can be bought and sold throughout the trading day at market prices. The goal of an ETF is to replicate the performance of the underlying index it tracks. This makes ETFs a popular choice for investors seeking diversification and exposure to a broad market or specific sector.

Explanation:

This requirement is a regulatory measure to ensure that the company’s public issue is aligned with its current business activities, as reflected in the new name. The 50% threshold indicates a substantial portion of the company’s recent revenue must be derived from the business activity associated with the new name, providing transparency and clarity to potential investors about the company’s focus and operations.

Explanation:

The Department of Investment and Public Asset Management (DIPAM), which is under the Ministry of Finance, Government of India, handles all matters related to the disinvestment of the Government of India’s shareholding in Central Public Sector Enterprises (CPSEs). The Department of Economic Affairs (DEA) does play a role in economic policy formulation and management, but disinvestment matters specifically fall under the purview of DIPAM.

Explanation:

In the case of a preferential issue of shares, as per the SEBI (Securities and Exchange Board of India) regulations, the allotment of shares to the alternate allottees (if any) pursuant to the special resolution must be completed within 15 days of passing such resolutions. This ensures a timely and efficient process for the issuance of shares through preferential allotment.

Explanation:

In India, the Government securities are primarily issued by the Central Government. These securities, also known as G-Secs or government bonds, are debt instruments through which the government raises funds from the market to meet its expenditure requirements and other financial obligations.

While State Governments may also issue their own securities known as State Development Loans (SDLs), the primary responsibility for issuing sovereign securities lies with the Central Government.

Explanation:

According to the Code of Conduct for Merchant Bankers in India, a Merchant Banker is indeed responsible for the acts or omissions of its employees and agents in respect of the conduct of its business. Merchant Bankers are expected to maintain a high standard of integrity and fairness in all their dealings, and they are accountable for the actions of those working under their authority.

Explanation:

As per the SEBI ICDR (Issue of Capital and Disclosure Requirements) Regulations, the issuer company making a public issue or a rights issue, where the aggregate value of the specified securities offered is Rupees 50 Lakhs or more, shall do so only when the draft offer document along with fees have been filed through the lead merchant banker with SEBI.

This regulation is in place to ensure that companies intending to make a public or rights issue adhere to the regulatory framework, and their offer documents are reviewed by SEBI before proceeding with the issuance.

Explanation:

Every Merchant Banker is required to pay an initial fee of Rs.10 lakh as registration fees. Additionally, a merchant banker who has been granted a certificate of permanent registration, to keep its registration in force, shall pay a fee of Rs.5 lakh every three years.

This fee structure is outlined by SEBI (Securities and Exchange Board of India) to ensure that merchant bankers contribute to the regulatory framework and comply with ongoing obligations to maintain their registration.

Explanation:

Yes, any non-promoter shareholder can offer its shares through the Offer For Sale (OFS) mechanism on the stock exchange. The OFS mechanism allows existing shareholders, including non-promoters such as institutional investors, retail investors, and others, to sell their shares to the public through the stock exchange platform.

This mechanism provides an avenue for existing shareholders to divest their holdings and allows investors to buy shares directly from them through the stock exchange, promoting liquidity in the market.

Explanation:

The SLR (Statutory Liquidity Ratio) and CRR (Cash Reserve Ratio) rates are decided by the Reserve Bank of India (RBI). These are regulatory ratios that banks are required to maintain as a certain percentage of their net demand and time liabilities.

• SLR (Statutory Liquidity Ratio): It is the percentage of deposits that banks need to maintain in the form of liquid assets such as cash, gold, or government securities. The purpose is to ensure the liquidity and solvency of the banks.
• CRR (Cash Reserve Ratio): It is the percentage of total deposits that banks are required to keep with the central bank (RBI) in the form of reserves in cash. It is a tool used by the central bank to control the money supply in the economy.

Explanation:

This means that the issuer should have a minimum paid-up capital of Rs.10 Crores, and the minimum market capitalization should be Rs.25 Crores for listing on these stock exchanges. These requirements are set to ensure a certain level of financial strength and market value for companies listed on the exchanges.

Explanation:

As per the SEBI (Prohibition of Insider Trading) Regulations, a person is deemed to be a connected person if such person is a banker of the company. This means that individuals associated with the company in certain capacities, including being a banker, are considered connected persons and are subject to restrictions on trading to prevent insider trading.