All in one Flashcards
What is the name of the Act enacted in 1992 to regulate the securities market in India?
(A) The Securities and Exchange Board of India Act
(B) The Indian Securities Regulation Act
(C) The Stock Exchange Management Act
(D) The Financial Markets Regulatory Act
A
When did the Securities and Exchange Board of India Act, 1992, come into force?
(A) 1st April 1992
(B) 30th January 1992
(C) 31st December 1991
(D) 15th August 1992
B
To which parts of India does the Securities and Exchange Board of India Act, 1992, extend?
(A) Only urban areas
(B) Only rural areas
(C) Whole of India
(D) Only selected states
C
In which year was the Securities and Exchange Board of India Act enacted?
(A) 1990
(B) 1991
(C) 1992
(D) 1993
C
What is the primary purpose of the Securities and Exchange Board of India Act, 1992?
(A) To regulate banking services
(B) To oversee insurance policies
(C) To regulate the securities market in India
(D) To control foreign exchange rates
C
Who has the authority to establish the Securities and Exchange Board of India (SEBI) under the Act?
(A) The President of India
(B) The Ministry of Finance
(C) The Central Government
(D) The Reserve Bank of India
C
Which city is the designated head office of the Securities and Exchange Board of India (SEBI)?
(A) New Delhi
(B) Bombay
(C) Kolkata
(D) Chennai
B
What is the legal status of the Securities and Exchange Board of India as per the Act?
(A) A governmental committee
(B) A private corporation
(C) A body corporate with perpetual succession
(D) An informal advisory body
C
Which of the following powers is granted to the Securities and Exchange Board of India under the Act?
(A) Acquire and hold only movable property
(B) Acquire and hold only immovable property
(C) Acquire, hold, and dispose of both movable and immovable property
(D) None of the above
C
How many whole-time members must be included among the five other members appointed by the Central Government on the SEBI Board?
(A) Two
(B) Three
(C) Four
(D) Five
B
Who appoints the Chairman of the Securities and Exchange Board of India (SEBI)?
(A) The Ministry of Finance
(B) The Reserve Bank of India
(C) The Central Government
(D) The President of India
C
Which officials are represented in the SEBI Board as per the Act?
(A) Two officials from the Ministry of Finance and one from the Reserve Bank
(B) Two officials from the Reserve Bank and one from the Ministry of Finance
(C) Only officials from the Reserve Bank
(D) Only officials from the Ministry of Corporate Affairs
A
What qualities are required for the Chairman and other members appointed to the SEBI Board under clauses (a) and (d) of sub-section (1)?
(A) Political affiliation and experience
(B) Ability, integrity, and standing with expertise in securities markets, law, finance, or related fields
(C) Experience in public relations
(D) Residency in Mumbai
B
Who has the general superintendence, direction, and management of SEBI’s affairs?
(A) The Chairman alone
(B) A Board of members
(C) The Reserve Bank of India
(D) The Ministry of Corporate Affairs
B
Under the SEBI Act, can the Board establish offices outside Bombay?
(A) No, it can only operate from Bombay
(B) Yes, but only with special government approval
(C) Yes, the Board may establish offices at other places in India
(D) Yes, but only in the metropolitan cities
C
Who nominates the members of SEBI Board from the Reserve Bank of India and Ministry of Finance?
(A) The Reserve Bank nominates all members
(B) The Central Government nominates all members
(C) The Central Government nominates Ministry officials, and the Reserve Bank nominates its own official
(D) SEBI nominates its own members
C
Which one of the following fields is NOT specifically listed as a qualification for the Chairman and other members appointed under Section 4?
(A) Securities market
(B) Public relations
(C) Law
(D) Accountancy
B
How many members in total can be appointed to the SEBI Board as per Section 4 of the Act?
(A) 4
(B) 5
(C) 7
(D) 9
C
Which of the following members of SEBI Board is nominated by the Reserve Bank of India?
(A) Chairman
(B) Two members from the Ministry of Finance
(C) One member who is an official of the Reserve Bank
(D) Five other members
C
Under the SEBI Act, the members of SEBI Board must possess integrity and experience in fields beneficial to SEBI. Which of the following areas could qualify a candidate?
(A) Event Management
(B) Securities market, law, finance, or economics
(C) Political Science
(D) Public Administration only
B
Who prescribes the term of office and conditions of service for the Chairman and certain members of the SEBI Board?
(A) The Reserve Bank of India
(B) The Central Government
(C) SEBI itself
(D) The Ministry of Corporate Affairs
b
Under the SEBI Act, what is the minimum notice period the Central Government must provide if it wishes to terminate the services of the Chairman or a member appointed under clause (d) of Section 4?
(A) One month
(B) Two months
(C) Three months
(D) Six months
c
If the Central Government decides to terminate the services of the Chairman before the end of the prescribed term, it may provide three months’ salary and allowances in lieu of which of the following?
(A) Formal resignation
(B) Notice of less than three months
(C) Additional severance pay
(D) Annual bonus
B
What right does the Chairman or a member appointed under clause (d) of Section 4 have if they wish to relinquish their office before the end of their term?
(A) They must serve until the end of the term
(B) They may resign immediately without notice
(C) They can give a notice of not less than three months to the Central Government
(D) They can delegate their responsibilities and leave
C
Under the SEBI Act, which of the following conditions can lead to the removal of a SEBI Board member by the Central Government?
(A) Insolvency
(B) Attaining a certain age
(C) Political affiliation
(D) Residing outside India
A
If the Chairman or a member appointed under clause (d) of Section 4 wishes to leave office early, what is the minimum period of notice they must provide?
(A) One month
(B) Two months
(C) Three months
(D) Six months
C
Who has the authority to terminate the service of the Chairman or any member appointed under clause (d) of Section 4 before the end of their term?
(A) The Reserve Bank of India
(B) The SEBI Board itself
(C) The Central Government
(D) The President of India
C
Who has the authority to remove a SEBI Board member from office under specific conditions?
(A) The Reserve Bank of India
(B) The President of India
(C) The SEBI Chairman
(D) The Central Government
D
A SEBI Board member may be removed from office if they are found to be of unsound mind. What is required for this condition to be valid?
(A) Declaration by a competent court
(B) Medical certificate from a private doctor
(C) Opinion of the SEBI Chairman
(D) Recommendation by the Reserve Bank
A
Which of the following offenses could lead to the removal of a SEBI Board member due to “moral turpitude” in the opinion of the Central Government?
(A) Late filing of taxes
(B) Minor traffic violations
(C) Conviction in a criminal offense involving moral turpitude
(D) Non-compliance with SEBI guidelines
C
If the Central Government believes a SEBI Board member has abused their position to the detriment of public interest, what must be provided before removal?
(A) A written warning
(B) A fine
(C) A reasonable opportunity for the member to be heard
(D) Immediate dismissal without any notice
C
Which of the following conditions does NOT warrant the removal of a SEBI Board member according to the Act?
(A) Adjudicated as insolvent
(B) Declaration as being of unsound mind by a competent court
(C) Appointment by the Reserve Bank of India
(D) Abuse of position to the detriment of public interest
C
Who has the authority to preside over a SEBI Board meeting in the absence of the Chairman?
(A) The Central Government
(B) The Reserve Bank of India
(C) Any member chosen by the members present at the meeting
(D) The senior-most member of the Board
C
How are decisions made at SEBI Board meetings?
(A) By unanimous vote only
(B) By the Chairman alone
(C) By majority vote of members present and voting
(D) By a two-thirds majority
C
In case of a tie during voting at a SEBI Board meeting, who has the casting vote?
(A) The Reserve Bank nominee
(B) The Ministry of Finance representative
(C) The Chairman or, in his absence, the presiding member
(D) Any whole-time member
C
What should a SEBI Board member do if they have a pecuniary interest in a matter being discussed at a Board meeting?
(A) Vote regardless of the interest
(B) Disclose the nature of their interest and refrain from participating in the decision
(C) Participate but refrain from voting
(D) Leave the meeting entirely
B
Where must a SEBI Board member’s disclosure of pecuniary interest be recorded?
(A) In a personal file
(B) In the Central Government’s records
(C) In the minutes of the meeting
(D) With the Chairman only
C
If the Chairman is present at a SEBI Board meeting and a vote results in a tie, what is the Chairman’s role in resolving it?
(A) Call for a re-vote
(B) Exercise a second or casting vote
(C) Defer the decision
(D) Let the senior-most member decide
B
What minimum requirement must SEBI Board meetings observe to transact business?
(A) A quorum as per regulations
(B) At least two-thirds of members present
(C) All members must be present
(D) A minimum of half of the members
A
Under the SEBI Act, a Board proceeding will not be invalidated due to which of the following reasons?
(A) A minor procedural error affecting the merits of the case
(B) A vacancy or defect in the constitution of the Board
(C) A delay in scheduling meetings
(D) Non-participation of members
B
Which of the following does NOT invalidate any SEBI Board proceedings?
(A) Irregularity in Board procedure not affecting the case’s merits
(B) Defect in the appointment of a Board member
(C) Absence of all members
(D) Vacancy in the Board
C
Who is responsible for appointing officers and employees necessary for SEBI to carry out its functions?
(A) The Central Government
(B) The Reserve Bank of India
(C) The SEBI Board
(D) The Ministry of Finance
C
According to the SEBI Act, which type of procedural irregularity would invalidate the Board’s proceedings?
(A) Any irregularity, regardless of its effect on the case
(B) An irregularity affecting the merits of the case
(C) Irregularity in member attendance
(D) Procedural delay in appointment
B
nder Section 8 of the SEBI Act, a defect in the appointment of which of the following would NOT invalidate the proceedings of the SEBI Board?
(A) Chairman only
(B) A member of the Board
(C) Whole-time member only
(D) External advisors
B
Who determines the terms and conditions of service for SEBI’s officers and employees?
(A) The Reserve Bank of India
(B) The Central Government
(C) The SEBI Board, as per regulations
(D) The Ministry of Corporate Affairs
C
Under the SEBI Act, a Board meeting would be valid even if which of the following situations occurs?
(A) A crucial decision is made without a quorum
(B) There is a defect in the appointment of a participating member
(C) A conflict of interest is not disclosed
(D) There is a major procedural error affecting the decision’s merits
B
If there is a vacancy on the SEBI Board, what impact does it have on the validity of the Board’s proceedings?
(A) Proceedings are invalid until the vacancy is filled
(B) Proceedings are partially valid
(C) It has no impact on the validity of proceedings
(D) All decisions made are reviewed by the Central Government
C
Which of the following is true about the terms of service for SEBI’s officers and employees?
(A) They are fixed by the Ministry of Finance
(B) They are determined by the Reserve Bank of India
(C) They are determined by SEBI regulations
(D) They are based on a fixed tenure set by the Central Government
C
What is the primary duty of the SEBI Board under the SEBI Act?
(A) To regulate the insurance industry
(B) To protect the interests of investors in securities and regulate the securities market
(C) To enforce banking regulations
(D) To oversee foreign trade policies
B
Under the SEBI Act, which of the following is NOT a function of the SEBI Board?
(A) Regulating substantial acquisition of shares and takeovers of companies
(B) Conducting research for the development of securities markets
(C) Overseeing credit rating agencies
(D) Managing the operations of public sector banks
D
Under the SEBI Act, which action is SEBI authorized to take to ensure compliance with regulations in securities markets?
(A) Conduct audits only on stock exchanges
(B) Undertake inspections and conduct inquiries of stock exchanges, mutual funds, and other market intermediaries
(C) Inspect private bank operations for compliance
(D) Investigate only those entities with prior approval from the Central Government
B
What authority does the SEBI Board have concerning foreign institutional investors under the SEBI Act?
(A) Full authority over their financial statements
(B) No authority as foreign entities are excluded
(C) Authority to register and regulate their working in India
(D) Authority to grant them direct access to the primary securities market
C
In cases where SEBI requires information for an investigation, it can call for records from which of the following?
(A) Only stock exchanges and mutual funds
(B) Any person, bank, or other authority or corporation established under any Central or State Act
(C) Only self-regulatory organizations within the securities market
(D) Only foreign regulatory agencies with an arrangement in place
B
What is SEBI’s role regarding “insider trading” as defined under the SEBI Act?
(A) Promoting insider trading for market transparency
(B) Prohibiting insider trading in securities
(C) Encouraging insider trading with strict regulations
(D) Limiting insider trading in specific securities
B
Which of the following intermediaries is SEBI empowered to register and regulate under the SEBI Act?
(A) Only brokers and sub-brokers
(B) Bankers, trustees, and investment advisors
(C) Private investment groups with no securities dealings
(D) Only entities outside of India
B
What must SEBI do before providing information to a foreign regulatory authority under an arrangement?
(A) Obtain approval from the stock exchanges in India
(B) Gain prior approval from the Central Government
(C) Seek permission from mutual funds
(D) Inform all registered companies in India
B
SEBI’s role in levying fees or other charges under the SEBI Act is primarily for what purpose?
(A) To generate revenue for the Central Government
(B) For administrative expenses only
(C) For carrying out the purposes of investor protection and market regulation
(D) For generating surplus income
C
Which measure allows SEBI to prevent unfair trade practices in the securities market?
(A) Promoting insider trading
(B) Prohibiting fraudulent and unfair trade practices related to securities
(C) Permitting all kinds of trading with disclosure requirements
(D) Encouraging unrestricted trade practices
B
Which function enables SEBI to work with international regulatory bodies on securities violations?
(A) Conducting research only on domestic practices
(B) Calling for information from, or furnishing information to, foreign authorities with prior approval
(C) Overseeing international market trends with local restrictions
(D) Operating under mutual agreements without Central Government approval
B
What is SEBI’s role concerning collective investment schemes, as per the SEBI Act?
(A) Overseeing marketing strategies
(B) Registering and regulating collective investment schemes, including mutual funds
(C) Mandating international partnerships
(D) Restricting them to domestic investments only
B
Which function allows SEBI to improve knowledge and skills within the securities markets?
(A) Prohibiting insider trading
(B) Regulating acquisition of shares
(C) Promoting investors’ education and training of intermediaries
(D) Imposing penalties for lack of knowledge
C
What responsibility does SEBI have in relation to self-regulatory organizations (SROs)?
(A) Oversee only their financial records
(B) Regulate their establishment and operation
(C) Restrict them from the securities market
(D) Allow them to operate without oversight
B
What is the primary goal behind SEBI conducting research under the SEBI Act?
(A) To benefit private investment companies
(B) For enhancing SEBI’s internal policies only
(C) For market development, investor protection, and securities regulation
(D) For academic purposes unrelated to market regulations
C
SEBI has the authority to regulate which of the following types of financial intermediaries?
(A) Only stock brokers and investment advisors
(B) Venture capital funds and collective investment schemes
(C) Commercial banks exclusively
(D) Only foreign institutional investors
B
Which of the following functions of SEBI aims to regulate the business conducted in stock exchanges?
(A) Promoting investors’ education
(B) Regulating the business in stock exchanges and other securities markets
(C) Conducting inquiries and audits
(D) Prohibiting insider trading
B
When SEBI conducts inquiries, which of the following is true regarding the information it can seek?
(A) It can only ask for information from its registered members
(B) It may call for information from any person, including banks and regulatory authorities
(C) It must rely solely on publicly available data
(D) It cannot seek information from entities outside India
B
What is one of the essential measures SEBI takes to ensure market integrity?
(A) Promoting unregulated trading practices
(B) Issuing licenses to financial consultants only
(C) Prohibiting insider trading and enforcing penalties
(D) Reducing the number of registered stock exchanges
C
Which of the following is a function related to the oversight of foreign institutional investors by SEBI?
(A) Conducting their audits annually
(B) Registering and regulating their operations in the Indian securities market
(C) Providing them with exclusive trading rights
(D) Banning their participation in the Indian market
B
What authority does SEBI possess in relation to conducting research?
(A) Conducting research solely for academic purposes
(B) Performing research to support its regulatory functions and market development
(C) Only analyzing past market trends
(D) Collaborating with international bodies exclusively
B
Which of the following actions does SEBI take regarding the regulation of investment advisers?
(A) It provides investment advice directly
(B) It registers and regulates their functioning in the securities market
(C) It offers certification courses for aspiring advisers
(D) It does not have any role in their regulation
B
SEBI is empowered to levy fees for which of the following purposes?
(A) To fund private investments
(B) To carry out the purposes related to the regulation and development of securities markets
(C) To support political campaigns
(D) To subsidize trading costs for retail investors
B
In what context does SEBI’s ability to promote self-regulatory organizations (SROs) apply?
(A) Encouraging unregulated practices
(B) Promoting and regulating SROs to ensure compliance with securities laws
(C) Overseeing their financial records only
(D) Disbanding any existing SROs
B
hich aspect of the securities market does SEBI not have the authority to regulate?
(A) Self-regulatory organizations
(B) Securities contracts and exchanges
(C) Banking transactions unrelated to securities
(D) Foreign institutional investors
C
Under the SEBI Act, what is the role of SEBI regarding information exchange with similar authorities?
(A) It can freely exchange information without restrictions
(B) It can call for or furnish information with the necessary approvals
(C) It can only seek information from domestic entities
(D) It cannot share any information with foreign authorities
B
Which of the following measures is taken by SEBI to safeguard investors’ interests?
(A) Promoting risky investment schemes
(B) Conducting regular audits of market intermediaries
(C) Restricting access to financial information
(D) Disallowing any regulatory oversight
B
What condition must be met for SEBI to call for information from banks during an investigation?
(A) Information must be publicly available
(B) The Board must deem it relevant to the inquiry
(C) The banks must voluntarily provide information
(D) Only regulatory authorities can request this information
B
In which scenario can SEBI conduct inquiries related to securities transactions?
(A) When market trends are favorable
(B) If it receives complaints from the public or intermediaries
(C) Only if it receives approval from the Central Government
(D) If it wants to assess the performance of mutual funds
B
What authority does SEBI have under Section 2A with regard to listed public companies?
(A) To initiate criminal proceedings against board members
(B) To undertake inspections of books, registers, or records if there are grounds of insider trading
(C) To impose direct penalties on investors
(D) To dissolve the board of any listed company
B
Which of the following best describes SEBI’s authority under sub-section (2A) of the SEBI Act?
(A) SEBI may issue arrest warrants for directors involved in insider trading
(B) SEBI can inspect records of companies intending to get listed if there is suspicion of unfair trading practices
(C) SEBI can only inspect records with permission from the company
(D) SEBI can initiate court cases directly against companies for unfair trade practices
B
Under sub-section (3), SEBI’s powers are aligned with the powers of a civil court under which legal act?
(A) The Securities Contracts (Regulation) Act, 1956
(B) The Code of Civil Procedure, 1908
(C) The Companies Act, 2013
(D) The Contract Act, 1872
B
When conducting inspections of a public company’s records, SEBI’s powers are comparable to those of a civil court in which area?
(A) Imposing criminal fines
(B) Compelling the production of books of account and documents
(C) Filing criminal cases in higher courts
(D) Disqualifying board members
B
What additional power does SEBI have when exercising authority under clauses (i) or (ia) of sub-section (2) or sub-section (2A)?
(A) Filing criminal cases independently
(B) Issuing commissions to examine witnesses or documents
(C) Collecting additional fees from public companies
(D) Imposing jail terms on those found guilty of insider trading
B
Under SEBI’s inspection authority, which of the following may be summoned by SEBI under its civil court powers?
(A) Only company executives with special permissions
(B) Any person or entity associated with the securities market
(C) Investors holding a minimum of 10% shares in a company
(D) Only registered intermediaries
B
In which situation is SEBI authorized to perform inspections under sub-section (2A)?
(A) If a company requests SEBI to conduct a performance audit
(B) If there is a reasonable belief of insider trading or unfair trade practices
(C) Only if there is a government directive
(D) If the company is not yet listed
B
SEBI’s power to inspect records includes which of the following documents according to sub-section (2A)?
(A) Only shareholder records
(B) All documents, books, and registers related to securities transactions
(C) Company expense reports
(D) Private emails of company executives
B
Which type of companies can SEBI inspect under the provisions of Section 2A without being an intermediary under Section 12?
(A) Private companies dealing only in derivatives
(B) Public companies intending to list securities on a recognized stock exchange
(C) Foreign companies with minority stakes in Indian markets
(D) Companies solely dealing in commodities
B
Under SEBI’s powers, which of the following actions can it take “pending investigation or inquiry” in the interest of investors?
(A) Suspend trading of any security in a recognized stock exchange
(B) Terminate employees within the organization
(C) Impose criminal charges on violators
(D) Provide financial assistance to intermediaries
A
Which of the following activities does SEBI have the authority to enforce under clause (ii) of sub-section (3)?
(A) Only inspecting documents when requested by the company
(B) Enforcing the attendance of persons and examining them on oath
(C) Restricting trading hours on stock exchanges
(D) Providing financial advice to companies under investigation
B
Which authority’s approval does SEBI require to attach bank accounts under clause (e)?
(A) High Court
(B) Judicial Magistrate of the first class
(C) Central Government
(D) Ministry of Finance
B
SEBI may restrain persons from accessing the securities market in cases of:
(A) Fraud or unfair trade practices only
(B) Violation of the Companies Act
(C) Any activity that poses a risk to investors or the market
(D) Delayed annual filings
C
In which scenario can SEBI suspend an office-bearer of a stock exchange under these provisions?
(A) If the office-bearer is not cooperative with SEBI’s policies
(B) When the office-bearer is involved in actions detrimental to investor interests
(C) When an office-bearer declines a SEBI meeting request
(D) When the office-bearer fails to complete mandatory SEBI training
B
For how long can SEBI attach bank accounts, as per clause (e), after obtaining the necessary approval?
(A) Three months
(B) One year
(C) One month
(D) Six months
C
Which measure is SEBI allowed to take concerning assets under investigation according to clause (f)?
(A) Seize the entire company’s assets
(B) Direct that no asset related to a transaction under investigation is disposed of
(C) Convert the assets into cash equivalents
(D) Distribute assets among investors
B
SEBI may impound and retain proceeds related to which types of transactions?
(A) All transactions by any public company
(B) Transactions currently under investigation
(C) Only transactions involving mutual funds
(D) Transactions made in foreign currencies
B
Under which condition can SEBI attach only part of a bank account’s transactions?
(A) When the transaction relates directly to securities violations
(B) If the intermediary requests leniency
(C) If the attachment order comes from the Ministry of Finance
(D) If SEBI lacks evidence for full attachment
A
Which of the following can SEBI act upon regarding a company intending to list on a recognized stock exchange?
(A) Penalize the company for poor market performance
(B) Investigate the company if there are reasonable grounds for insider trading
(C) Directly influence share prices
(D) Approve new board appointments
B
When is SEBI required to provide an opportunity for hearing to the concerned parties?
(A) Always before passing any order
(B) Either before or after passing an order, depending on the situation
(C) Only for stock exchanges
(D) Only after a formal complaint is filed
B
Under which fund is the amount disgorged, pursuant to SEBI’s direction, credited?
(A) Investor Safeguard Fund
(B) Investor Protection and Education Fund
(C) Securities Regulation Fund
(D) SEBI Trust Fund
B
Under SEBI’s regulations, which matters can the Board specify to protect investors?
(A) Issue of capital and employment conditions
(B) Transfer of securities and incidental matters
(C) Dividend distribution and profit-sharing policies
(D) Debt restructuring and insolvency procedures
B
According to SEBI’s powers, which of the following actions can be taken regarding a company’s prospectus or offer document?
(A) SEBI can publish the prospectus on its official website
(B) SEBI may prohibit any company from issuing a prospectus or advertisement
(C) SEBI can alter the content of the prospectus directly
(D) SEBI may approve the distribution channels for prospectus
B
Which act’s provisions are not prejudiced by SEBI’s authority to specify requirements for listing and transfer of securities?
(A) Securities and Exchange Board of India Act, 1992
(B) Companies Act, 1956
(C) Securities Contracts (Regulation) Act, 1956
(D) Depositories Act, 1996
C
In SEBI’s authority to protect investors, the Board may specify regulations related to which of the following?
(A) The manner in which company matters are disclosed
(B) Regulations for corporate governance standards
(C) Procedures for appointing board members
(D) Guidelines for setting investment limits for individual investors
A
SEBI’s general or special orders may specify which conditions for a company’s prospectus or offer document?
(A) Conditions on shareholder rights
(B) Conditions under which the document may be issued if not prohibited
(C) Conditions for company internal policies
(D) Conditions for dividend distribution
B
In the context of SEBI’s powers, which of the following is an action that can be taken without prejudice to the Companies Act, 1956?
(A) Direct oversight of company board meetings
(B) Specifying regulations on transfer of securities
(C) Regulating appointment of company directors
(D) Dictating investment strategies of listed companies
B
SEBI’s authority to specify requirements for listing and transfer of securities is intended to:
(A) Enhance transparency and protection for investors
(B) Control the share prices of listed companies
(C) Increase direct SEBI involvement in company operations
(D) Ensure companies meet profit benchmarks
A
What is the minimum corpus amount for any unregistered fund pooling to be considered a collective investment scheme under SEBI’s guidelines?
(A) 50 crore rupees
(B) 75 crore rupees
(C) 100 crore rupees
(D) 150 crore rupees
C
According to the SEBI Act, which of the following is a condition that qualifies a scheme as a collective investment scheme?
(A) Contributions from investors are pooled and managed on their behalf
(B) Daily investor control over the management of the scheme
(C) The scheme is registered as a private investment company
(D) Contributions must be under one crore rupees
A
Under SEBI’s regulations, which of the following entities is exempt from the collective investment scheme provisions?
(A) Mutual benefit societies registered under Section 620A of the Companies Act, 1956
(B) Stock exchange platforms for retail investors
(C) Private equity ventures with less than 100 crore corpus
(D) Unregistered real estate investment trusts
A
Which of the following is NOT considered a collective investment scheme according to SEBI’s provisions?
(A) Schemes under the Insurance Act, 1938
(B) Mutual fund schemes registered under SEBI
(C) Non-banking financial company deposits
(D) Private stock market ventures
D
Which type of scheme involving deposits does NOT fall under the SEBI’s collective investment scheme provisions?
(A) Schemes under the Employees Provident Fund and Miscellaneous Provisions Act, 1952
(B) Unregistered schemes involving foreign exchange trading
(C) Non-banking financial company deposits exceeding 100 crore
(D) Private chit fund schemes
A
Which of the following is NOT a requirement for a scheme to be deemed a collective investment scheme under SEBI guidelines?
(A) Investors make contributions with a view to receive profits or income
(B) Contributions are pooled for use within the scheme
(C) Investors must have daily control over the scheme’s operations
(D) The scheme’s assets are managed on behalf of investors
C
To whom can SEBI issue directions under Section 11B in the interest of investors and the securities market?
(A) Only listed companies
(B) Any person or class of persons associated with the securities market
(C) Only foreign investors
(D) Shareholders with majority stakes
B
Which scheme qualifies as a collective investment scheme but is explicitly excluded if notified by the Central Government in consultation with SEBI?
(A) Schemes under the Chit Fund Act, 1982
(B) Cooperative society schemes
(C) Schemes notified under Section 620A of the Companies Act, 1956
(D) Schemes notified by the Central Government after consulting SEBI
D
Under Section 11B of the SEBI Act, SEBI can issue directions to any person or entity if necessary to:
(A) Maintain the general stability of corporate governance
(B) Advance the profits of the company
(C) Protect investors and ensure orderly development of the securities market
(D) Enable companies to raise funds from the public
C
What is one of the main purposes of SEBI’s power to issue directions under Section 11B?
(A) To prevent the affairs of any intermediary from being conducted in a way harmful to the investors or securities market
(B) To provide financial assistance to intermediaries
(C) To increase the stock market valuation of companies
(D) To restrict entry of foreign investors
A
According to the Explanation in Section 11B, SEBI’s power to issue directions includes the authority to:
(A) Freeze company accounts
(B) Disgorge profits made or losses averted by transactions in violation of SEBI regulations
(C) Take control of a company’s board
(D) Regulate all private transactions in the market
B
Which of the following is NOT a reason SEBI may issue directions under Section 11B?
(A) To ensure proper management of intermediaries
(B) To enhance the profitability of securities firms
(C) To prevent harm to investor interests
(D) To maintain orderly development of the securities market
B
What does SEBI require before exercising its powers under Section 11B?
(A) A written directive from the Central Government
(B) Conducting an enquiry and being satisfied of the necessity to act
(C) Approval from the company involved
(D) Investor consent
B
Under Section 11C, SEBI may order an investigation if it believes:
(A) Securities transactions are being conducted in a way beneficial to investors
(B) An intermediary has fully complied with SEBI rules
(C) Transactions in securities are being handled detrimentally to investors or the securities market
(D) Securities laws are too strict
C
Under Section 11B, SEBI may direct disgorgement of wrongful gains by persons who:
(A) Follow all market regulations
(B) Have made profit or avoided loss by contravening SEBI regulations
(C) Operate in unregulated market spaces
(D) Trade in non-securitized assets
B
Who is required to cooperate with SEBI’s Investigating Authority by preserving and producing necessary documents?
(A) Only the shareholders of the company
(B) Managers, managing directors, and officers of the company
(C) Only brokers
(D) The government
B
The Investigating Authority can examine persons on oath if it believes it is necessary to:
(A) Gather evidence regarding the securities market
(B) Formulate new laws
(C) Validate a company’s share price
(D) Investigate insider trading laws only
A
The Investigating Authority has the power to keep documents in its custody for a period of:
(A) Three months
(B) Six months, extendable if needed
(C) One year, without extension
(D) Indefinitely
B
If a person fails to cooperate with the Investigating Authority without reasonable cause, they may face:
(A) A fine only
(B) Imprisonment up to one year, a fine up to one crore rupees, or both
(C) No penalty, as cooperation is voluntary
(D) Revocation of their company’s stock listing
B
In case the Investigating Authority suspects tampering of documents, it may request:
(A) The company’s management to secure documents
(B) Police officers to assist in seizing documents
(C) The Central Government to take charge of the investigation
(D) Foreign assistance for document review
B
The authority granted to SEBI under Section 11C for search and seizure operations is:
(A) Only to be used in rare cases
(B) Subject to provisions of the Code of Criminal Procedure, 1973
(C) Limited to non-public companies
(D) A complete exemption from criminal procedure laws
B
If SEBI’s Investigating Authority seizes documents under Section 11C, it must:
(A) Destroy them after investigation
(B) Keep them indefinitely
(C) Return them after the investigation, with identification marks if necessary
(D) Share them publicly
C
Who may SEBI authorize to investigate under Section 11C?
(A) A company CEO
(B) The Central Government
(C) The Investigating Authority specified in SEBI’s order
(D) Only SEBI Board members
C
Under Section 11C, SEBI can direct an investigation if it believes that transactions in securities are being conducted in a manner:
(A) Beneficial to the securities market
(B) Detrimental to investors or the securities market
(C) Supporting rapid market growth
(D) Violating only company policies
B
Which of the following conditions could lead SEBI to initiate an investigation under Section 11C?
(A) Increase in stock market prices
(B) Belief that an intermediary has violated SEBI regulations
(C) Good compliance by all intermediaries
(D) High returns to investors
B
It is the duty of every intermediary or associated person to:
(A) Ignore the Investigating Authority’s requests
(B) Preserve and produce relevant documents when requested
(C) Refuse to share financial records
(D) Request a court order before cooperating
B
Under Section 11C(2), which of the following is NOT obligated to cooperate with SEBI’s investigation?
(A) Managers of the company
(B) Government officials unrelated to the market
(C) Managing directors of the company
(D) Persons associated with the securities market
B
Under Section 11C(3), the Investigating Authority can require documents from:
(A) Only company shareholders
(B) Any intermediary or associated person
(C) SEBI Board only
(D) Government employees exclusively
B
How long may the Investigating Authority keep documents in its custody under Section 11C(4)?
(A) One year without extension
(B) Six months, extendable if necessary
(C) Three months
(D) Indefinitely
B
If additional investigation is required, the Investigating Authority may call for:
(A) The same documents and records previously examined
(B) Only new records after the initial investigation
(C) Verification from an external audit firm
(D) Verification from the company’s shareholders
A
The Investigating Authority has the power to examine any company official on oath to:
(A) Discuss company profits
(B) Investigate securities-related issues
(C) Gather evidence unrelated to securities
(D) Discuss stock market predictions
B
Under Section 11C(4), what can the person who provided the documents request from the Investigating Authority?
(A) Destruction of the documents after the investigation
(B) Certified copies of the documents produced
(C) Compensation for document production
(D) Full legal immunity from investigation
B
If the Investigating Authority finds reasonable grounds for document tampering, it can:
(A) Ignore the documents
(B) Call for police assistance to seize documents
(C) Discontinue the investigation
(D) Only ask for additional witness testimony
B
The Investigating Authority may apply to which judicial authority for document seizure under Section 11C(8)?
(A) The High Court
(B) Designated Magistrate or Judge of the court in Mumbai
(C) District Collector’s Office
(D) Company shareholders’ board
B
SEBI’s authority to search and seize documents must comply with the provisions of:
(A) Only SEBI’s own regulations
(B) The Code of Criminal Procedure, 1973
(C) The Companies Act, 1956
(D) Banking Regulation Act, 1949
B
Failure to produce documents or cooperate with the Investigating Authority may result in:
(A) Only a warning
(B) Imprisonment up to one year, a fine up to one crore rupees, or both
(C) Full exemption from punishment
(D) Loss of company’s stock market listing
B
Which of the following scenarios would require the Investigating Authority to seek prior authorization for document seizure?
(A) In cases involving public companies suspected of insider trading
(B) If documents are kept in SEBI’s custody
(C) Only when there are financial discrepancies
(D) For annual financial reviews
A
Once an investigation is concluded, the Investigating Authority is required to:
(A) Destroy all documents
(B) Return documents to the original party with identification marks
(C) Retain documents indefinitely
(D) Make all documents public
B
The Investigating Authority’s power to mark documents before returning them ensures:
(A) Complete destruction of documents after use
(B) No unauthorized access to documents
(C) Identification of previously seized documents for future reference
(D) Exclusive ownership of documents by SEBI
C
The overall purpose of SEBI’s power under Section 11C is to:
(A) Increase profits for all companies
(B) Ensure transparency and protect the securities market
(C) Focus only on financial audits
(D) Promote certain stocks in the market
B
Under what conditions can SEBI pass a cease and desist order against a person?
(A) When it has verified company profits
(B) Upon finding or anticipating a violation of SEBI Act provisions or regulations
(C) Only after consulting the company’s shareholders
(D) If the person requests such an order
B
A cease and desist order by SEBI aims to prevent a person from:
(A) Conducting any legal business activities
(B) Committing or causing a violation of SEBI rules or regulations
(C) Expanding their business to multiple sectors
(D) Collaborating with other companies
B
Which of the following types of companies may be exempt from SEBI’s cease and desist order, unless involved in insider trading or market manipulation?
(A) All public companies
(B) Listed public companies and companies intending to list on a recognized exchange
(C) Only private companies
(D) Companies involved in the service sector
B
Before passing a cease and desist order, SEBI must have reasonable grounds to believe that the company has engaged in which of the following activities?
(A) Insider trading or market manipulation
(B) Extensive hiring practices
(C) Asset expansion
(D) Partnerships with foreign companies
A
A company that intends to get listed on a recognized stock exchange may face a cease and desist order if SEBI finds evidence of:
(A) Profit growth exceeding 20%
(B) Violation of SEBI regulations involving insider trading
(C) Regular dividend distribution
(D) High employee turnover
B
For which type of company would SEBI generally avoid issuing a cease and desist order unless there are indications of market manipulation?
(A) Private companies
(B) Listed public companies not engaged in market manipulation
(C) Public companies with low profits
(D) Unregistered small businesses
B
What must SEBI do before issuing a cease and desist order against a company with plans to list on an exchange?
(A) Obtain shareholder approval
(B) Establish reasonable grounds for suspecting insider trading or manipulation
(C) Seek the company’s consent
(D) Notify the stock exchange in writing
B
The purpose of a cease and desist order from SEBI is to:
(A) Restrict market competition
(B) Prevent potential or ongoing violations of the SEBI Act or related regulations
(C) Boost the market value of specific stocks
(D) Approve all transactions within a company
B
If SEBI identifies insider trading activities in a company, it can:
(A) Issue a cease and desist order against the company
(B) Ignore the violation if profits are high
(C) Require the company to delist from the exchange
(D) Allow the violation if no other issues are found
A
In order to issue a cease and desist order under this provision, SEBI must be concerned about:
(A) The company’s dividend payouts
(B) The company’s engagement in insider trading or market manipulation
(C) The company’s environmental impact
(D) The company’s growth rate
B
Which of the following intermediaries is required to obtain a certificate of registration from SEBI to deal in securities?
(A) Stock broker
(B) Banker to an issue
(C) Portfolio manager
(D) All of the above
D
Under what conditions may intermediaries such as stock brokers or portfolio managers continue to operate after the establishment of SEBI if they previously did not require registration?
(A) Until they receive a certificate from SEBI
(B) For a period of three months or until their application for registration is disposed of
(C) Only for one month
(D) Indefinitely, without applying for registration
B
Which of the following is included in the requirement to obtain a certificate of registration under Section 12 of the SEBI Act?
(A) Credit rating agencies
(B) Venture capital funds
(C) Mutual funds
(D) All of the above
D
Which type of policy is explicitly excluded from the definition of a collective investment scheme or mutual fund under this section?
(A) Equity-linked savings scheme
(B) Unit linked insurance policy
(C) Fixed deposit scheme
(D) Government bonds
B
According to the SEBI Act, who has the authority to suspend or cancel a certificate of registration for an intermediary?
(A) The central government
(B) The stock exchange
(C) SEBI, by order
(D) The finance ministry
C
Before SEBI suspends or cancels a registration certificate, what must be provided to the person concerned?
(A) A notice period of one year
(B) A reasonable opportunity to be heard
(C) Approval from the Ministry of Finance
(D) A written request to cancel
B
Which statement about venture capital funds and collective investment schemes is correct as per this section?
(A) They do not need SEBI registration to operate.
(B) They require SEBI registration to operate.
(C) They must be sponsored only by foreign institutions.
(D) They are exempt from SEBI regulations.
B
What happens to intermediaries who were dealing in the securities market before the commencement of the Securities Laws (Amendment) Act, 1995, without requiring registration?
(A) They must cease operations immediately.
(B) They may continue until SEBI creates new regulations.
(C) They can continue operating indefinitely.
(D) They must reapply every year.
B
What is required for an application for registration with SEBI to be considered valid?
(A) It must be submitted through a stock exchange
(B) It must be accompanied by the specified fees
(C) It must be handwritten
(D) It must be notarized
B
Who is responsible for setting the manner and fees for the registration of intermediaries with SEBI?
(A) The Ministry of Finance
(B) SEBI, through regulations
(C) The central government
(D) The company registrar
B
What is the maximum period allowed for a person to continue operating without a registration certificate after the establishment of SEBI?
A) 1 month
B) 3 months
C) 6 months
D) 12 months
B
Which type of fund is explicitly required to obtain registration under the SEBI Act?
A) Pension funds
B) Collective investment schemes
C) Insurance funds
D) Savings accounts
B
What happens if an intermediary fails to obtain a registration certificate from SEBI?
A) They may continue operating indefinitely
B) They must cease operations immediately
C) They can apply for a waiver
D) They may face penalties but can continue until action is taken
D
What is the status of a unit linked insurance policy under the SEBI Act?
A) It is considered a mutual fund.
B) It is exempt from being classified as a collective investment scheme.
C) It requires registration with SEBI.
D) It is regulated by the Insurance Act only.
B
Who has the authority to suspend or cancel a certificate of registration for any intermediary?
A) The Ministry of Finance
B) The Central Government
C) SEBI
D) The respective stock exchange
C
What must SEBI provide to an intermediary before suspending or canceling their registration?
A) A formal written notice
B) A reasonable opportunity to be heard
C) A refund of registration fees
D) A public announcement
B
Which of the following is NOT a condition for a scheme to be classified as a collective investment scheme?
A) Contributions must be pooled for the scheme.
B) Investors must have day-to-day control over the management.
C) Investors must expect profits from the contributions.
D) The scheme must manage property on behalf of investors.
B
Which of the following is true regarding the registration process?
A) Applications for registration must be submitted in person.
B) Fees for registration are determined by SEBI regulations.
C) There are no fees associated with the registration.
D) Applications can be submitted without proper documentation.
B
What action can SEBI take if it finds that a person is likely to violate provisions of the Act?
A) File a criminal complaint immediately
B) Pass an order requiring the person to cease and desist
C) Impose fines without investigation
D) Conduct a public hearing
B
Under the SEBI Act, who is responsible for investigating the affairs of intermediaries if violations are suspected?
A) The Central Government
B) The Investigating Authority
C) The Stock Exchange
D) The Finance Ministry
B
What must an intermediary do if they receive a notice from SEBI regarding a violation?
A) Ignore it, as they can appeal later
B) Comply immediately without question
C) Seek a reasonable opportunity to be heard
D) Close their business operations
C
Which of the following statements is true about collective investment schemes?
A) They can operate without any registration.
B) They involve pooling funds for investment purposes.
C) They do not need to report profits to investors.
D) They are regulated solely by the Companies Act.
B
If an investigation reveals that books and records may be destroyed, what can the Investigating Authority do?
A) Ignore the situation
B) Notify the company to secure records
C) Apply for a court order to seize those records
D) Summon the CEO for questioning
C
What is the penalty for failing to produce documents as required by the Investigating Authority?
A) Fine only
B) Imprisonment or fine
C) Community service
D) No penalty
B
Which of the following actions is prohibited in connection with the issue, purchase, or sale of securities listed on a recognized stock exchange?
A) Using manipulative or deceptive devices
B) Engaging in insider trading
C) Employing any scheme to defraud
D) All of the above
D
What is one of the prohibited activities related to insider trading?
A) Making public announcements
B) Communicating non-public information to others
C) Purchasing securities through a broker
D) Investing in mutual funds
B
Which of the following acts could be considered fraud in securities transactions?
A) Failing to disclose financial risks
B) Engaging in deceptive practices
C) Buying shares during a market downturn
D) Conducting due diligence
B
What constitutes a violation when acquiring control of a company?
A) Acquiring less than the threshold percentage
B) Acquiring more than the specified percentage of equity share capital
C) Making public disclosures about acquisitions
D) Selling shares within the legal limit
B
Which of the following best describes “material information”?
A) Information that is publicly available
B) Information that could influence an investor’s decision
C) Information that is outdated
D) All of the above
B
Which of the following actions would NOT be considered as manipulative or deceptive in securities transactions?
A) Making false statements about a company’s financial health
B) Engaging in insider trading
C) Providing accurate and timely information to investors
D) Pumping and dumping stocks
C
Under what condition is it legal to deal in securities while in possession of non-public information?
A) When the information is publicly available within a week
B) When the information is not material
C) It is never legal to deal in such circumstances
D) When the person is an insider with permission
C
Which of the following is true regarding the use of schemes to defraud in securities?
A) Only registered brokers can be charged with fraud.
B) Any person involved in dealing with securities can be charged with fraud.
C) Fraud charges apply only to institutional investors.
D) Only corporate executives can engage in fraudulent schemes.
B
What is the main objective of prohibiting manipulative or deceptive practices in securities transactions?
A) To enhance the market share of brokerage firms
B) To protect investors and ensure fair trading practices
C) To increase government revenue from taxes
D) To promote speculation in the stock market
B
Which of the following would likely be considered insider trading?
A) A manager selling shares based on public news
B) An employee sharing confidential earnings reports with friends
C) A broker advising clients based on market trends
D) A shareholder voting at an annual general meeting
B
What is the primary purpose of the Board’s power to issue directions?
A) To increase trading volume
B) To protect investors and ensure orderly market development
C) To regulate interest rates
D) To promote foreign investments
B
Which of the following actions can the Board take under its powers?
A) Specify requirements for listing securities
B) Approve company mergers
C) Set interest rates for loans
D) Regulate corporate tax policies
A
Under what circumstance can the Board prohibit a company from issuing a prospectus?
A) If the company is new
B) If it has outstanding debts
C) If it poses a risk to investors or the securities market
D) If it has received public criticism
C
What constitutes a collective investment scheme?
A) A scheme that only accepts government funds
B) A scheme where contributions are pooled for profit distribution
C) A scheme limited to government employees
D) A scheme that involves only debt securities
B
Which of the following is excluded from being classified as a collective investment scheme?
A) Contracts of insurance
B) Mutual funds
C) Any pooled investment over one hundred crore rupees
D) Venture capital funds
A
What happens if a collective investment scheme is not registered with the Board?
A) It is automatically legalized
B) It is deemed illegal if involving over one hundred crore rupees
C) It can continue operating indefinitely
D) It must undergo additional audits
B
Who can the Board direct to investigate the affairs of intermediaries?
A) Any individual investor
B) Specified Investigating Authorities
C) The police department
D) External auditors
B
Refuse to provide documents
B) Preserve and produce all relevant records
C) Discuss findings publicly
D) Only cooperate if requested by management
B
What action can the Investigating Authority take if there is a risk of evidence being destroyed?
A) Ignore the situation
B) Request a search warrant from the designated court
C) Conduct a surprise audit
D) Issue a press release
B
If a person refuses to cooperate with the Investigating Authority, what penalties may they face?
A) A warning
B) Imprisonment or fines
C) Suspension from trading
D) Mandatory training
B
What is prohibited in relation to the buying and selling of securities?
A) Using manipulative devices
B) Sharing investment tips with friends
C) Buying stocks
D) Holding stocks for more than a year
A
Which activity constitutes insider trading?
A) Selling shares based on public news
B) Using confidential information for personal gain
C) Discussing stock options in a public forum
D) Investing in mutual funds
B
Which of the following is allowed when dealing with securities?
A) Engaging in fraudulent schemes
B) Using deceptive practices
C) Communicating material information legally
D) Manipulating stock prices
C
Under what condition can someone acquire more than the allowed percentage of equity share capital?
A) With government approval
B) There are no conditions; it is always allowed
C) When the securities are not listed
D) It is prohibited under all circumstances
D
The Securities Board’s powers include which of the following?
A) Taxation
B) Regulation of market intermediaries
C) Approving merger transactions
D) Setting currency exchange rates
B
What is the consequence of acquiring control of a company without adhering to regulations?
A) It is permissible under certain circumstances
B) The acquisition will be legal if disclosed later
C) It is considered a violation of the Act
D) There are no consequences
C
Which of the following best describes ‘material information’ in the context of securities?
A) Information that is available to the general public
B) Information that could significantly affect an investor’s decision
C) Information that has no impact on stock prices
D) Information that is outdated
B
Who among the following does NOT need a certificate of registration from the Board according to the given text?
a) Stock broker
b) Portfolio manager
c) Individual retail investor
d) Merchant banker
C
What is the grace period provided to existing intermediaries to continue operations after the establishment of the Board without registration?
a) 1 month
b) 2 months
c) 3 months
d) 6 months
C
Registration certificates obtained before the Securities Laws (Amendment) Act, 1995 are:
a) Automatically void
b) Need immediate renewal
c) Deemed to be obtained from the Board
d) Subject to fresh application
C
A foreign institutional investor can deal in securities:
a) Without any registration
b) Only with SEBI registration
c) With only bank approval
d) With only government approval
B
Which condition must be met for an intermediary to continue operations beyond three months after the Board’s establishment?
a) Must have minimum capital
b) Must have made an application for registration within three months
c) Must have prior experience
d) Must have government approval
B
According to the text, which of these entities requires registration to operate in the securities market?
a) Depository
b) Credit rating agency
c) Participant
d) All of the above
D
The registration requirement for securities market intermediaries is:
a) Optional
b) Mandatory only for new entities
c) Mandatory for all specified intermediaries
d) Required only for foreign entities
C
The regulation primarily aims to:
a) Control foreign investment
b) Regulate market intermediaries
c) Manage stock prices
d) Control retail investors
B
A person working as a share transfer agent before the Board’s establishment:
a) Must immediately stop operations
b) Can continue indefinitely without registration
c) Can continue for 3 months without registration
d) Is permanently exempted from registration
C
The term “participant” in the text refers to:
a) Stock market investors
b) Depository participants
c) Board members
d) Company shareholders
B
Which of these pairs correctly represents intermediaries mentioned in the text?
a) Custodian of securities and Portfolio manager
b) Property dealer and Insurance agent
c) Travel agent and Stock broker
d) Real estate agent and Merchant banker
A
The Board’s power to specify additional intermediaries is:
a) Limited to domestic entities
b) Through court orders only
c) Through notification
d) Not mentioned in the text
C
The registration requirements mentioned in section (1A) apply to:
a) Only domestic intermediaries
b) Both domestic and foreign intermediaries
c) Only listed companies
d) Only retail investors
B
What happens to an application made within the three-month period?
a) Automatically approved
b) Automatically rejected
c) Operations can continue till disposal of application
d) Operations must stop after three months regardless
C
The second proviso of the regulation deals with:
a) New registrations
b) Foreign investors
c) Existing certificates before the Amendment Act, 1995
d) Board formation
C
Which of the following best describes the scope of the regulation?
a) Only stock brokers and sub-brokers
b) Only depositories and participants
c) All specified intermediaries in securities market
d) Only merchant bankers
C
The regulation mandates that intermediaries:
a) Can only buy securities
b) Can only sell securities
c) Can neither buy nor sell securities
d) Can buy, sell or deal in securities with proper registration
D
The text suggests that regulation of intermediaries is enforced through:
a) Self-regulation only
b) Certificate of registration from the Board
c) Annual licenses
d) State government permits
B
A trustee of trust deed wanting to start operations in securities market must:
a) Only inform the Board
b) Get registration before starting operations
c) Can operate without registration
d) Only needs government approval
B
The conditions for registration mentioned in the text are:
a) Specified in the text itself
b) To be specified in regulations made under the Act
c) Left to Board’s discretion
d) Not mentioned
B
hich statement is TRUE according to the text?
a) All market participants need registration
b) Only new intermediaries need registration
c) Registration is optional for foreign investors
d) Specified intermediaries need registration
D
The regulation’s scope covers:
a) Only primary market intermediaries
b) Only secondary market intermediaries
c) Both primary and secondary market intermediaries
d) Only retail market participants
C
Credit rating agencies are mentioned in:
a) The main provision
b) The first proviso
c) Section 1A
d) Not mentioned at all
C
The regulation provides for:
a) Permanent exemption from registration
b) Temporary exemption with conditions
c) No exemption at all
d) Exemption based on turnover
B
According to the text, which of these statements is FALSE?
a) Board can specify additional intermediaries
b) All certificates need immediate renewal
c) Registration is mandatory for specified intermediaries
d) Foreign institutional investors need registration
B
The transitional provisions in the regulation apply to:
a) Only new intermediaries
b) Only existing intermediaries
c) Both new and existing intermediaries
d) None of the above
B
Under the regulation, custodians of securities:
a) Are exempt from registration
b) Need registration only for foreign securities
c) Must obtain registration from the Board
d) Can operate with bank approval only
C
The timeframe for existing intermediaries to apply for registration is:
a) Immediate
b) Within three months
c) Within six months
d) Not specified
B
The regulation’s treatment of pre-1995 certificates indicates:
a) A retrospective application of the law
b) Invalidation of old certificates
c) Requirement for fresh registration
d) Automatic renewal requirement
A
The regulation creates a framework that is primarily:
a) Preventive in nature
b) Punitive in nature
c) Advisory in nature
d) Voluntary in nature
A
If a sub-broker makes an application within three months but it’s rejected, they:
a) Can continue operations indefinitely
b) Must cease operations immediately upon rejection
c) Can apply again while continuing operations
d) Can operate for another three months
B
The phrase “such other intermediary” in the text suggests that:
a) The list of intermediaries is exhaustive
b) The list of intermediaries is illustrative
c) Only listed intermediaries are regulated
d) Intermediaries can self-determine their status
B
What is the key difference between sections (1) and (1A)?
a) Time period of application
b) Type of intermediaries covered
c) Registration process
d) Penalty provisions
B
The regulation’s approach to market intermediaries can be described as:
a) Selective regulation
b) Comprehensive regulation
c) Minimal regulation
d) Self-regulation
B
The second proviso’s main purpose appears to be:
a) Creating new requirements
b) Ensuring continuity of existing operations
c) Restricting market entry
d) Promoting competition
B
The scope of “securities market” under this regulation is:
a) Limited to stock exchanges
b) Limited to primary market
c) Comprehensive and inclusive
d) Limited to government securities
C
An investment adviser who started business just after the Board’s establishment:
a) Gets three months to register
b) Must register before starting operations
c) Can operate without registration
d) Needs only a business license
B
Under this regulation, which activity requires registration?
a) Only buying of securities
b) Only selling of securities
c) Either buying or selling
d) Buying, selling or dealing
D
The regulation’s treatment of existing market participants shows:
a) Strict immediate compliance
b) No consideration for existing business
c) Balanced transition approach
d) Complete exemption
C
The regulation appears to be designed to:
a) Restrict market activities
b) Ensure market oversight
c) Eliminate intermediaries
d) Reduce market participation
B
In terms of territorial jurisdiction, the regulation applies to:
a) Only domestic intermediaries
b) Only foreign intermediaries
c) Both domestic and foreign intermediaries
d) Not specified in the text
C
The regulatory framework established by this text is:
a) Optional for market participants
b) Mandatory with transitional provisions
c) Purely voluntary
d) Based on market size
A
B
According to the text, who among these can continue operations without immediate registration after the Securities Laws (Amendment) Act, 1995?
a) New mutual fund companies
b) Existing credit rating agencies
c) New venture capital funds
d) New depositories
B
What is explicitly excluded from the definition of collective investment schemes?
a) Mutual funds
b) Unit linked insurance policies
c) Venture capital funds
d) Foreign investments
B
The fees for registration shall be:
a) Fixed by the government
b) Determined by regulations
c) Set by the Board directly
d) Decided by market forces
B
For cancellation of registration certificate, the Board must:
a) Give immediate effect
b) Provide reasonable hearing opportunity
c) Take court permission
d) Consult market experts
B
According to Section 1B, venture capital funds:
a) Are exempt from registration
b) Need only government approval
c) Must obtain registration from the Board
d) Can operate without any regulation
C
The Explanation in the text primarily aims to:
a) Define mutual funds
b) Remove doubts about insurance products
c) Explain venture capital
d) Define collective investment schemes
B
Registration fees and manner of application are:
a) Fixed in the Act
b) Determined by regulations
c) Set by market practice
d) Decided by applicants
B
The Board’s power to suspend registration:
a) Is absolute
b) Requires court approval
c) Must follow regulatory procedure
d) Needs government permission
C
Pre-1995 market participants could continue operations until:
a) A fixed date
b) Regulations were made under section 30(2)(d)
c) Board’s special permission
d) New registration
B
Which of these requires registration under Section 1B?
a) Only mutual funds
b) Only venture capital funds
c) Both mutual funds and venture capital funds
d) Neither mutual funds nor venture capital funds
C
The text’s treatment of insurance products indicates:
a) Complete prohibition
b) Exemption from certain provisions
c) Additional regulation
d) Mandatory registration
B
The suspension of registration certificate:
a) Takes immediate effect
b) Requires reasonable opportunity of hearing
c) Needs court validation
d) Is permanent
B
The regulation of pre-1995 market participants shows:
a) Immediate stringent control
b) Gradual transition approach
c) Complete exemption
d) Retroactive penalties
D
For collective investment schemes, registration is:
a) Optional
b) Mandatory
c) Based on size
d) Based on type
B
What component excludes an instrument from being considered a collective investment scheme?
a) Investment portion
b) Insurance component
c) Trading component
d) Market component
B
Application for registration must be:
a) Only in prescribed manner
b) Only with prescribed fees
c) Both prescribed manner and fees
d) Either manner or fees
C
The Board’s regulatory power regarding registration is:
a) Limited to new entities
b) Applicable to all specified entities
c) Only for foreign entities
d) Only for domestic entities
B
The phrase “sponsor or cause to be sponsored” suggests:
a) Direct responsibility only
b) Indirect responsibility only
c) Both direct and indirect responsibility
d) No clear responsibility
C
Regarding unit-linked insurance policies, the text:
a) Prohibits them
b) Clarifies their exclusion
c) Requires their registration
d) Ignores them completely
B
The regulation’s approach to market intermediaries can be described as:
a) Voluntary compliance
b) Mandatory registration with transition provisions
c) Self-regulation
d) No regulation
B
What is the primary focus of Section 12A?
a) Registration of brokers
b) Market manipulation and fraud
c) Stock exchange operations
d) Investor education
B
The prohibition on manipulative devices applies to securities that are:
a) Only listed securities
b) Only proposed to be listed
c) Both listed and proposed to be listed
d) Neither listed nor proposed
C
Under Section 12A, communication of non-public information is:
a) Always permitted
b) Prohibited if in contravention of regulations
c) Allowed between brokers
d) Permitted to family members
B
Acquisition of control of a company is:
a) Completely prohibited
b) Allowed without restrictions
c) Regulated as per prescribed limits
d) Only allowed for foreign investors
C
The term “directly or indirectly” in the opening suggests:
a) Only direct actions are prohibited
b) Only indirect actions are prohibited
c) Both direct and indirect actions are prohibited
d) Neither direct nor indirect actions are prohibited
C
The section’s scope covers:
a) Only primary market
b) Only secondary market
c) Both primary and secondary markets
d) Only derivative markets
C
The prohibition on deceptive devices applies to:
a) Issue of securities only
b) Purchase of securities only
c) Sale of securities only
d) Issue, purchase, and sale of securities
D
The section prohibits:
a) All trading in securities
b) Only fraudulent practices
c) Only insider trading
d) Only market manipulation
B
Insider trading under this section is:
a) Partially allowed
b) Completely prohibited
c) Allowed with disclosure
d) Permitted for certain persons
B
Material information under this section refers to:
a) Published information
b) Non-public information
c) Historical data
d) Market statistics
B
Control acquisition restrictions apply to:
a) All companies
b) Listed companies only
c) Listed and proposed to be listed companies
d) Unlisted companies only
C
Regarding fraudulent schemes, the section:
a) Prohibits only complex schemes
b) Prohibits all devices and schemes to defraud
c) Allows some deceptive practices
d) Regulates only large schemes
B
The term “artifice to defraud” suggests:
a) Only technological fraud
b) Only paper-based fraud
c) Any form of deliberate deception
d) Only financial misstatements
C
Communication of material information is prohibited when:
a) It’s done by any person
b) It contravenes regulations
c) It’s done by insiders only
d) It’s done in writing
B
The section’s provisions are:
a) Directory in nature
b) Mandatory in nature
c) Advisory in nature
d) Voluntary in nature
B
The section applies to:
a) Only domestic markets
b) Only international markets
c) All securities markets within jurisdiction
d) Only government securities
C
Dealing in securities while possessing material information is:
a) Always allowed
b) Prohibited if in contravention of regulations
c) Allowed with disclosure
d) Permitted for certain persons
B
The section’s approach to market misconduct is:
a) Preventive only
b) Punitive only
c) Both preventive and punitive
d) Neither preventive nor punitive
C
Which of these is NOT explicitly mentioned in Section 12A?
a) Insider trading
b) Market manipulation
c) Front running
d) Control acquisition
C
The section’s provisions regarding deceptive practices are:
a) Limited to specific acts
b) Comprehensive and inclusive
c) Only for listed securities
d) Only for new issues
B
The regulation of control acquisition is based on:
a) Number of shares
b) Percentage of equity share capital
c) Market value
d) Face value
B
Fraudulent acts under this section must be:
a) Connected with securities
b) Of large value only
c) Only in primary market
d) Only in secondary market
A
The prohibition on market manipulation applies to:
a) Only buyers
b) Only sellers
c) Both buyers and sellers
d) Only intermediaries
C
The section views non-public information as:
a) Free to use
b) Restricted in use
c) Available for all
d) Not important
B
Control acquisition restrictions are:
a) Absolute in nature
b) Based on regulations
c) Self-regulated
d) Not specified
B
The term “course of business” in the section refers to:
a) Only single acts
b) Only multiple acts
c) Both single and continuous acts
d) Neither single nor continuous acts
C
The scope of “material information” includes:
a) Only price sensitive information
b) Only company secrets
c) All non-public material information
d) Only financial data
C
The section’s provisions regarding fraud are:
a) Limited to specific acts
b) Open-ended and inclusive
c) Only for large frauds
d) Only for systematic frauds
B
Manipulative devices are prohibited when:
a) Used in any market
b) Used only in stock exchange
c) Used in connection with listed securities
d) Used by any person
C
The overall objective of Section 12A appears to be:
a) Market development
b) Investor protection
c) Market integrity
d) All of the above
Answer:
D
The Central Government’s power to issue directions:
a) Is absolute
b) Is limited to policy matters
c) Requires Board’s approval
d) Is only for emergencies
b
Before issuing directions, the Central Government:
a) Must obtain Board’s approval
b) Should give opportunity for Board’s views where practicable
c) Must consult Parliament
d) Has no obligation to consult
B
Who determines if a question is one of policy?
a) The Board
b) The Central Government
c) The Supreme Court
d) Joint decision
B
The Central Government’s decision on policy matters is:
a) Subject to Board’s review
b) Final
c) Subject to judicial review
d) Temporary
B
Which of these is NOT a ground for supersession?
a) Grave emergency
b) Persistent default
c) Public interest
d) Financial profit
D
Maximum period of Board’s supersession is:
a) 3 months
b) 6 months
c) 1 year
d) 2 years
B
Upon supersession, Board members:
a) Continue in reduced capacity
b) Vacate office immediately
c) Become advisors
d) Work under government
B
During supersession, Board’s powers are exercised by:
a) Chairman only
b) Senior-most member
c) Person(s) directed by Central Government
d) Supreme Court
C
The Board’s property during supersession:
a) Remains with Board
b) Vests in Central Government
c) Transfers to new members
d) Is frozen
B
Reconstitution of Board can be done:
a) Only after supersession period
b) Before expiration of supersession
c) Only by Court order
d) Both a and b
D
Previous members after supersession are:
a) Permanently disqualified
b) Not automatically disqualified
c) Required to wait for 5 years
d) Need special permission
B
The timing for placing supersession report in Parliament should be:
a) Within one month
b) Within six months
c) At the earliest
d) Next session
C
Report of supersession must be placed before:
a) Supreme Court
b) Each House of Parliament
c) State Legislatures
d) Board members
B
Central Government’s directions must be:
a) Verbal
b) In writing
c) Either verbal or written
d) Through press note
B
Board’s functions during supersession are:
a) Suspended
b) Continued by new persons
c) Merged with government
d) Terminated
B
For supersession on ground of grave emergency:
a) Parliamentary approval needed
b) Court order needed
c) Notification sufficient
d) Board’s consent required
C
Financial deterioration as ground for supersession requires:
a) Only poor finances
b) Default in compliance with directions
c) Market downturn
d) Public complaint
B
Supersession notification must specify:
a) Only grounds
b) Only period
c) Both grounds and period
d) Neither grounds nor period
C
The Board’s views on directions:
a) Must be followed
b) Are advisory in nature
c) Are binding
d) Override government
B
During supersession, Board’s duties are:
a) Suspended
b) Transferred
c) Terminated
d) Shared
B
Public interest as ground for supersession:
a) Must be proven in court
b) Needs Board’s agreement
c) Is determined by government
d) Requires public consultation
C
The Act’s provisions regarding directions are:
a) Exhaustive
b) Without prejudice to other provisions
c) Limited to emergencies
d) Subject to Board’s approval
B
Reconstitution of Board requires:
a) Fresh appointment
b) Reinstatement of old members
c) Court approval
d) Public notice
A
Board’s compliance with directions is:
a) Optional
b) Mandatory
c) Subject to availability
d) Negotiable
B
Report to Parliament must include:
a) Only notification
b) Only circumstances
c) Both notification and full report
d) Neither notification nor report
C
Persistent default means:
a) One-time default
b) Regular non-compliance
c) Technical default
d) Minor violations
B
Property vesting during supersession is:
a) Permanent
b) Temporary
c) Partial
d) Optional
B
Central Government’s power includes:
a) Only policy directions
b) Only supersession
c) Both policy directions and supersession
d) Neither policy directions nor supersession
C
After supersession, previous members:
a) Cannot be reappointed
b) Can be reappointed
c) Must be reappointed
d) Need special clearance
B
The Act provides for:
a) Only Board’s dissolution
b) Only Board’s supersession
c) Both dissolution and supersession
d) Neither dissolution nor supersession
B
Board’s opportunity to express views:
a) Is mandatory
b) Is discretionary
c) Is as far as practicable
d) Is not required
C
Time limit for supersession is:
a) Minimum period
b) Maximum period
c) Exact period
d) Suggested period
B
Direction on policy matters:
a) Must be specific
b) Can be general
c) Must be oral
d) Must be through court
A
Supersession powers are:
a) Regular powers
b) Emergency powers
c) Limited powers
d) Delegated powers
B
Parliament’s role in supersession is:
a) Approval before action
b) Post-facto information
c) No role
d) Continuous monitoring
B
The notification for supersession:
a) Has immediate effect
b) Has prospective effect
c) Needs court approval
d) Requires Board consent
A
Central Government’s powers under these sections are:
a) Advisory
b) Regulatory
c) Supervisory
d) Absolute within specified limits
D
During supersession, Board’s functions:
a) Cease completely
b) Continue under different authority
c) Remain suspended
d) Transfer to court
B
The provisions aim to ensure:
a) Board’s independence
b) Government control
c) Balance of power
d) Market freedom
C
Delegation of Board’s powers must be:
a) Verbal only
b) In writing only
c) Either verbal or written
d) Through public notice
B
Late appeals can be admitted if:
a) Never allowed
b) Sufficient cause shown
c) Payment of fine
d) Board agrees
B
The Board’s power of delegation:
a) Can’t be delegated at all
b) Can be delegated except powers under section 29
c) Can be fully delegated
d) Must be delegated
B
The Board can delegate powers to:
a) Members only
b) Officers only
c) Members, officers, or any other person
d) Government officials only
C
Appeals against Board’s orders before Securities Laws (Second Amendment) Act, 1999 were made to:
a) High Court
b) Supreme Court
c) Central Government
d) Special Tribunal
C
Civil courts’ jurisdiction is:
a) Concurrent with Board
b) Superior to Board
c) Barred in Board’s matters
d) Optional in Board’s matters
C
Appeal must be accompanied by:
a) Only prescribed fees
b) Only copy of order
c) Both fees and copy of order
d) Neither fees nor copy
C
Before disposing of appeal, appellant must be given:
a) Written submission only
b) Reasonable hearing opportunity
c) No hearing required
d) Multiple hearings
B
Members of the Board are deemed to be:
a) Government employees
b) Public servants
c) Private employees
d) Consultants
B
Protection for actions is available when done:
a) In official capacity only
b) In good faith
c) With court permission
d) Under any circumstances
B
The form of appeal should be:
a) Any format
b) As prescribed
c) As per appellant
d) As per court
B
Delegation order by Board can be:
a) General only
b) Special only
c) Either general or special
d) Neither general nor special
C
Time limit for appeal is:
a) Fixed by Board
b) Fixed by Court
c) As prescribed
d) No limit
D
Protection under Section 23 extends to:
a) Only Central Government
b) Only Board members
c) Both Government and Board
d) Neither Government nor Board
C
Injunction against Board’s orders:
a) Can be granted by any court
b) Cannot be granted by any court
c) Can be granted with conditions
d) Can be granted by High Court only
B
Appeal procedure is:
a) Determined by appellant
b) Fixed by court
c) As prescribed
d) Determined by Board
C
Public servant status applies when:
a) Always
b) Only during office hours
c) When acting under the Act
d) When directed by government
C
Delegation can be subject to:
a) No conditions
b) Only statutory conditions
c) Conditions specified in order
d) Only court conditions
C
The saving clause in Section 21:
a) Prohibits all proceedings
b) Allows proceedings apart from Act
c) Requires Board’s permission
d) Requires court permission
B
Powers under Section 29 are:
a) Fully delegable
b) Not delegable
c) Partially delegable
d) Conditionally delegable
B
Legal proceedings protection covers:
a) Only suits
b) Only prosecutions
c) Suits, prosecutions and other legal proceedings
d) Only civil matters
C
Board’s delegation power is:
a) Mandatory
b) Discretionary
c) Automatic
d) Not allowed
B
Appeal rights under the Act are:
a) Unlimited
b) Limited to specified provisions
c) Subject to court approval
d) Available to Board only
B
Protection under Section 23 requires:
a) Only official capacity
b) Only good faith
c) Both official capacity and good faith
d) Neither official capacity nor good faith
B
The adjudicating officer’s orders:
a) Can be appealed anywhere
b) Cannot be appealed
c) Can be appealed as per Section 15T or 20
d) Need Board’s approval
C
Bar of jurisdiction applies to:
a) Only civil courts
b) Only criminal courts
c) All courts and authorities
d) Only high courts
C
Delegation order must specify:
a) Only powers delegated
b) Only conditions
c) Both powers and conditions if any
d) Neither powers nor conditions
C
Public servant status is:
a) Optional
b) Deemed by law
c) Requires declaration
d) Temporary
B
Appeal admission after prescribed period:
a) Is automatic
b) Is not possible
c) Requires sufficient cause
d) Needs Board’s consent
C
Protection of action extends to:
a) Only intentional acts
b) Only unintentional acts
c) Both intentional and unintentional acts in good faith
d) Neither intentional nor unintentional acts
C
The scope of delegation includes:
a) Only powers
b) Only functions
c) Both powers and functions
d) Neither powers nor functions
Answer:
C
Appeal form requirements are:
a) Advisory
b) Directory
c) Mandatory
d) Optional
C
Civil court’s power to grant injunction in Board matters is:
a) Limited
b) Unlimited
c) Prohibited
d) Discretionary
C
Board members’ status as public servants is for:
a) Limited purposes
b) All purposes
c) Only official duties
d) Specific acts under the law
D
The saving clause under Section 21 is:
a) Absolute
b) Limited
c) Conditional
d) Temporary
A
Legal proceedings protection is:
a) Absolute
b) Limited to good faith actions
c) Subject to court approval
d) Not available
B
Delegation order must be:
a) Permanent
b) Temporary
c) As specified in order
d) For fixed period
C
Appeal fees are:
a) Fixed by Board
b) Fixed by Government
c) As prescribed
d) Not required
C
The bar of jurisdiction provision is:
a) Partial
b) Complete
c) Temporary
d) Optional
B
Protection under the Act is available for actions:
a) Only under the Act
b) Under Act, rules and regulations
c) Only under rules
d) Only under regulations
B
What is the maximum imprisonment term for contravening the Act?
(A) 5 years
(B) 10 years
(C) 15 years
(D) Life imprisonment
B
Who can compound certain offenses under the Act?
(A) Central Government
(B) Securities Appellate Tribunal
(C) High Court
(D) Ministry of Law
B
What is the maximum fine for contravening the Act?
(A) 10 crore
(B) 15 crore
(C) 25 crore
(D) 50 crore
C
What is the minimum imprisonment term if a person fails to pay the imposed penalty?
(A) 1 month
(B) 6 months
(C) 1 year
(D) 2 years
A
Which authority has the power to grant immunity from prosecution under this Act?
(A) Supreme Court
(B) Securities Appellate Tribunal
(C) Central Government
(D) Adjudicating Officer
C
Under what condition can immunity granted under the Act be withdrawn?
(A) Lack of cooperation
(B) False evidence provided
(C) Disapproval by Securities Appellate Tribunal
(D) After 5 years
B
Who recommends granting immunity for violations of the Act?
(A) Board
(B) High Court
(C) Supreme Court
(D) Parliament
A
What type of offense cannot be compounded under this Act?
(A) Imprisonment only
(B) Fine only
(C) Imprisonment with fine
(D) Both (A) and (C)
D
Which tribunal can compound certain offenses under the Act?
(A) Securities Appellate Tribunal
(B) District Court
(C) High Court
(D) Supreme Court
A
What is the purpose of Section 24A of the Act?
(A) Composition of certain offenses
(B) Appointment of an adjudicating officer
(C) Fine imposition
(D) Prosecution immunity
A
Which body can recommend immunity under Section 24B?
(A) Securities Appellate Tribunal
(B) The Board
(C) High Court
(D) Parliament
B
Who imposes penalties under this Act?
(A) Central Government
(B) Adjudicating Officer
(C) Securities Appellate Tribunal
(D) Supreme Court
B
What is the minimum imprisonment term for non-compliance with the Adjudicating Officer’s directions?
(A) 10 days
(B) 1 month
(C) 6 months
(D) 1 year
B
What happens if immunity conditions are violated by the applicant?
(A) Fine is doubled
(B) Immunity is withdrawn
(C) Case is dismissed
(D) Penalty is reduced
B
Under Section 24, offenses can be penalized with which of the following?
(A) Imprisonment only
(B) Fine only
(C) Both imprisonment and fine
(D) None of the above
C
What is the purpose of Section 24A?
(A) Penalty imposition
(B) Compounding of certain offenses
(C) Immunity grant
(D) Adjudication powers
B
What is the minimum fine for offenses under Section 24?
(A) 1 lakh rupees
(B) 10 crore rupees
(C) No minimum specified
(D) 25 crore rupees
C
Who can compound an offense before legal proceedings begin?
(A) High Court
(B) Securities Appellate Tribunal
(C) Parliament
(D) Central Government
B
Immunity from prosecution may be granted upon which condition?
(A) Payment of a fine
(B) Full disclosure of violation
(C) Completing a training program
(D) Submission of an affidavit
B
Who ultimately decides on granting immunity under Section 24B?
(A) Board
(B) Securities Appellate Tribunal
(C) Central Government
(D) Adjudicating Officer
C
What is the maximum term of imprisonment for failing to pay a penalty?
(A) 5 years
(B) 10 years
(C) 1 year
(D) 15 years
B
Which Act is referenced in Section 24A for compounding offenses?
(A) Companies Act
(B) Code of Criminal Procedure, 1973
(C) Evidence Act
(D) Civil Procedure Code
B
Which section addresses the composition of certain offenses?
(A) Section 24
(B) Section 24A
(C) Section 24B
(D) Section 25
B
In which section is immunity discussed?
(A) Section 24
(B) Section 24A
(C) Section 24B
(D) Section 25
C
What term is used for assisting in contravening the Act?
(A) Accomplice
(B) Abetment
(C) Coercion
(D) Facilitation
B
Which of the following can be compounded under the Act?
(A) Offenses with imprisonment only
(B) Offenses with fines only
(C) Offenses with both imprisonment and fines
(D) All of the above
B
What authority does the Central Government have if immunity conditions are breached?
(A) Suspend the fine
(B) Withdraw immunity
(C) Revoke the Act
(D) Modify penalty
B
What is required for immunity consideration under Section 24B?
(A) Written request from Parliament
(B) Recommendation by the Board
(C) Approval from the Supreme Court
(D) High Court recommendation
B
Immunity cannot be granted if proceedings were instituted before what event?
(A) Fine payment
(B) Application for immunity
(C) Board recommendation
(D) Tribunal approval
B
Under what condition is a person liable if immunity is revoked?
(A) Misrepresentation
(B) Compliance with conditions
(C) Submission of evidence
(D) Good conduct
A
What is the maximum fine a person may face under Section 24 for a contravention?
(A) 50 crore
(B) 10 crore
(C) 25 crore
(D) 1 crore
C
Who makes rules and regulations under this Act?
(A) The Board
(B) Central Government
(C) Securities Appellate Tribunal
(D) Supreme Court
B
Under Section 24A, which body can compound an offense?
(A) High Court
(B) Central Government
(C) Securities Appellate Tribunal
(D) Ministry of Finance
C
An offense may be compounded if it is punishable with:
(A) Imprisonment only
(B) Fine only
(C) Both (A) and (B)
(D) None of the above
B
Under what circumstances can immunity be revoked by the Central Government?
(A) Non-disclosure of relevant facts
(B) Meeting conditions
(C) Adhering to Act rules
(D) Completion of compliance
A
Under Section 24, imprisonment can be extended up to:
(A) 2 years
(B) 5 years
(C) 10 years
(D) 15 years
C
Immunity can be granted by the Central Government on which basis?
(A) Adjudicating Officer’s suggestion
(B) Board’s recommendation
(C) Parliament’s approval
(D) Tribunal’s advice
B
If a person violates the provisions of this Act, they may be:
(A) Fined only
(B) Imprisoned only
(C) Both fined and imprisoned
(D) Given immunity
C
Section 24 is associated with:
(A) Penalty imposition
(B) Composition of offenses
(C) Immunity grant
(D) None of the above
A
What is the role of an adjudicating officer under this Act?
(A) Grant immunity
(B) Impose penalties
(C) Compounding offenses
(D) Draft regulations
B
Who is exempt from paying wealth tax, income tax, or any other tax under this Act?
(A) The Board and SEBI
(B) Only the Board
(C) SEBI only
(D) None
A
Under what conditions will a court take cognizance of an offense under this Act?
(A) Complaint by any citizen
(B) Complaint made by the Board
(C) With permission of High Court
(D) Automatically upon discovery
B
Who can establish Special Courts for trial of offenses under this Act?
(A) High Court
(B) Central Government
(C) SEBI
(D) Supreme Court
B
What qualification is required for a judge in a Special Court under this Act?
(A) Sessions Judge or Additional Sessions Judge
(B) District Judge
(C) Any qualified advocate
(D) None of the above
A
Which Act’s provisions apply to proceedings before Special Courts as per Section 26D?
(A) Income Tax Act
(B) Code of Criminal Procedure, 1973
(C) Companies Act
(D) Evidence Act
B
Under Section 26A, how is a Special Court established?
(A) By notification
(B) Through Board approval
(C) Via SEBI guidelines
(D) High Court consent
A
Which authority can transfer cases from a Special Court to another jurisdiction?
(A) SEBI
(B) High Court
(C) Supreme Court
(D) Central Government
B
Who appoints the judge of a Special Court?
(A) SEBI
(B) Central Government with concurrence of High Court Chief Justice
(C) Supreme Court
(D) Board members
B
Who must have seven years’ experience for conducting prosecution in a Special Court?
(A) Any advocate
(B) Person with special knowledge of law
(C) Newly appointed judges
(D) Any SEBI employee
B
Where are offenses tried before a Special Court is established?
(A) Supreme Court
(B) Court of Session
(C) District Court
(D) High Court
B
Who can prescribe the number of Special Courts as required?
(A) High Court
(B) Central Government
(C) SEBI
(D) Supreme Court
B
The establishment of Special Courts under this Act aims to provide:
(A) Rigorous punishment
(B) Fast-track trials
(C) High-profile case management
(D) Increased penalties
B
What document empowers the High Court to exercise powers over Special Courts?
(A) Income Tax Act
(B) Companies Act
(C) Code of Criminal Procedure, 1973
(D) Evidence Act
C
Who is deemed to be a Public Prosecutor in a Special Court?
(A) Any lawyer appointed by SEBI
(B) Person conducting prosecution under the Code of Criminal Procedure
(C) Judge of the Special Court
(D) SEBI Officer
B
In which section is it stated that Special Court judges must be existing Sessions Judges?
(A) 26B
(B) 26A
(C) 26D
(D) 26E
B
The Special Court operates under which type of jurisdiction?
(A) National
(B) Regional
(C) Exclusive
(D) Local limits
D
What is the minimum experience needed for a prosecutor in a Special Court?
(A) 3 years
(B) 5 years
(C) 7 years
(D) 10 years
C
Under Section 26E, which Court tries offenses until a Special Court is available?
(A) District Court
(B) Sessions Court
(C) High Court
(D) Supreme Court
B
Section 26D mandates that Special Courts are considered equivalent to which type of Court?
(A) Magistrate Court
(B) High Court
(C) Court of Session
(D) District Court
C
Who supervises the trial of cases under Section 26B when multiple Special Courts exist?
(A) SEBI
(B) High Court
(C) Central Government
(D) Ministry of Law
B
Under Section 26A, the concurrence of which judicial authority is needed to appoint a Special Court judge?
(A) Chief Justice of India
(B) Chief Justice of the High Court
(C) Any High Court judge
(D) None of the above
B
Which Act’s chapters can the High Court apply in appeals from Special Courts?
(A) Evidence Act
(B) Code of Criminal Procedure, Chapters XXIX and XXX
(C) Indian Penal Code
(D) Income Tax Act
B
Section 26C deals with:
(A) Setting up Special Courts
(B) Appeals and revisions
(C) Tax exemption
(D) Cognizance of offenses
B
Which section states that a complaint must be made by the Board for offense cognizance?
(A) 25
(B) 26
(C) 26A
(D) 26C
B
How are Special Courts designated?
(A) Notification
(B) SEBI guidelines
(C) Parliamentary approval
(D) Ministry of Finance decision
A
Who is exempt from income tax under Section 25?
(A) Only Board members
(B) Board and SEBI
(C) Central Government
(D) All public institutions
B
Who determines the area for Special Court jurisdiction if multiple exist?
(A) Supreme Court
(B) High Court
(C) SEBI
(D) Central Government
B
Which Code’s procedures are followed by Special Courts?
(A) Civil Procedure Code
(B) Criminal Procedure Code
(C) Evidence Act
(D) Companies Act
B
What is the primary aim of Section 26E?
(A) Permit Sessions Court jurisdiction
(B) Exempt SEBI from prosecution
(C) Extend trial periods
(D) Settle inter-court disputes
A
How long must a person have practiced as an advocate to prosecute in a Special Court?
(A) 3 years
(B) 5 years
(C) 7 years
(D) 10 years
C
What does Section 24 specify about penalties for contravening the provisions of this Act?
(A) Imprisonment up to five years
(B) Imprisonment up to ten years or fine
(C) Only fine
(D) No penalties apply
B
What is the maximum fine for contravention under this Act?
(A) Ten crore rupees
(B) Twenty-five crore rupees
(C) Fifty crore rupees
(D) One crore rupee
B
What is the minimum imprisonment term for failing to pay a penalty imposed by the adjudicating officer?
(A) One month
(B) Six months
(C) Three months
(D) No minimum term
A
Immunity from prosecution under Section 24B can be granted by:
(A) High Court
(B) Central Government
(C) SEBI
(D) Board of Directors
B
What authority can compound certain offences under this Act?
(A) District Court
(B) Securities Appellate Tribunal
(C) High Court
(D) Ministry of Finance
B
Under what condition can immunity granted be withdrawn?
(A) If the individual changes their statement
(B) Non-compliance with conditions
(C) Delay in court proceedings
(D) Change in government
B
Who has the authority to grant immunity from prosecution?
(A) Board
(B) High Court
(C) Central Government
(D) Adjudicating Officer
C
What is the primary purpose of establishing Special Courts?
(A) Increase penalties
(B) Provide speedy trial of offenses
(C) Protect defendants’ rights
(D) Reduce court backlogs
B
Which authority recommends granting immunity under Section 24B?
(A) High Court
(B) Central Government
(C) Board
(D) Supreme Court
C
Which type of offenses can be compounded according to Section 24A?
(A) All offenses
(B) Offenses not punishable with imprisonment only
(C) Offenses punishable with imprisonment only
(D) All financial offenses
B
What is the role of the Board in cognizance of offenses?
(A) To appoint judges
(B) To file complaints
(C) To impose penalties
(D) To provide legal representation
B
What is required for a person to be eligible to serve as a judge of a Special Court?
(A) Must have worked as a lawyer for three years
(B) Must be a sitting High Court judge
(C) Must have held a post requiring special knowledge of law for seven years
(D) Must be a retired judge
C
Which section discusses the cognizance of offenses by Special Courts?
(A) 24
(B) 26
(C) 24A
(D) 26A
B
What is the composition of a Special Court as established under Section 26A?
(A) Two judges
(B) A single judge
(C) Three judges
(D) A panel of experts
B
What does Section 26D state about the application of the Code of Criminal Procedure?
(A) It does not apply
(B) It applies only partially
(C) It fully applies
(D) It applies with amendments
C
Who has the power to specify which Special Court will hear a case?
(A) Board
(B) High Court
(C) Central Government
(D) Supreme Court
B
What is the role of the Chief Justice of the High Court in the appointment of Special Court judges?
(A) They have no role
(B) They must concur with the Central Government
(C) They appoint judges directly
(D) They oversee the trials
B
What is the primary focus of Section 26B?
(A) Establishing penalties
(B) Cognizance and trial of offenses
(C) Tax exemptions
(D) Granting immunity
B
What happens if an individual fails to comply with conditions of immunity?
(A) The immunity is automatically extended
(B) They may be prosecuted for the original offense
(C) They receive a warning
(D) No action is taken
B
What is the primary liability of individuals in a company when an offence is committed?
(A) Only the company is liable
(B) Only the shareholders are liable
(C) Individuals responsible for the company’s business are liable
(D) No one is liable
C
In what scenario can a Court of Session take cognizance of offenses under this Act?
(A) When no Special Court exists
(B) Automatically without a complaint
(C) Only on appeal from a Special Court
(D) When directed by the Supreme Court
A
Under what condition can a person in charge of a company avoid liability for an offence?
(A) If the company pays a fine
(B) If they prove lack of knowledge and due diligence
(C) If the offence was minor
(D) If they resign before the offence
B
Who else, besides the company, may be deemed guilty of an offence committed by a company?
(A) Shareholders
(B) Creditors
(C) Directors and officers of the company
(D) All employees
C
In the context of the Act, what is defined as a “company”?
(A) Any partnership
(B) Any body corporate, including firms
(C) Only public limited companies
(D) Only private limited companies
B
What does Section 28A primarily address?
(A) Criminal penalties
(B) Recovery of amounts due
(C) Immunity from prosecution
(D) Company registration
B
What action can a Recovery Officer take for non-compliance with a penalty?
(A) Only issue a warning
(B) Arrest the individual
(C) Recover the amount through various means
(D) File a civil suit
C
Which of the following is NOT a method of recovery mentioned in Section 28A?
(A) Attachment of bank accounts
(B) Arrest and detention
(C) Suspension of operations
(D) Attachment of movable and immovable property
C
What provisions are applicable for recovery actions taken by Recovery Officers?
(A) Only the provisions of this Act
(B) Provisions of the Income-tax Act, 1961
(C) Provisions of the Companies Act
(D) Provisions of the Contract Act
B
Which individuals can be liable for an offence committed by a company according to Section 27?
(A) Only directors
(B) Managers and secretaries
(C) Any person in charge of the company’s business
(D) All employees
C
What is the term used to describe the authority responsible for recovery under the Act?
(A) Compliance Officer
(B) Recovery Officer
(C) Adjudicating Officer
(D) Enforcement Officer
B
What does the term “due diligence” imply in the context of liability under this Act?
(A) Efforts taken to comply with laws
(B) Regular audits
(C) Immediate resignation
(D) Only following orders from superiors
A
Under Section 28A, which entity can assist Recovery Officers in their duties?
(A) Local law enforcement
(B) The company’s legal team
(C) Local district administration
(D) The shareholders’ committee
C
hat does Section 28A say about recovery precedence?
(A) It has no precedence
(B) It is secondary to civil claims
(C) It has precedence over other claims
(D) It is dependent on court rulings
C
What is required for a company officer to avoid liability for an offence?
(A) Knowledge of the offence
(B) Prior experience in the company
(C) Proof of diligence and lack of knowledge
(D) Just being an officer
C
What will happen if a person transfers property after a penalty has become due?
(A) The transfer is void
(B) The property is excluded from recovery
(C) It is included for recovery purposes
(D) Only bank accounts are considered
C
How are the terms “director” and “partner” related in the context of a firm?
(A) They are synonymous
(B) Directors are only for corporations
(C) Partners are not responsible
(D) Only directors can be prosecuted
A
If a company commits an offence, what is the liability of the company itself?
(A) No liability
(B) Full liability under the Act
(C) Limited liability
(D) Liability only to shareholders
B
What action may be taken against a person who fails to pay penalties imposed?
(A) They can be publicly shamed
(B) They may face a fine only
(C) Various recovery measures can be employed
(D) They will receive a warning
C
Which section addresses offences committed by companies specifically?
(A) Section 24
(B) Section 26
(C) Section 27
(D) Section 28
C
Which of the following is NOT a requirement for a Recovery Officer?
(A) Being authorized by the Board
(B) Knowledge of tax laws
(C) Appointed by the Central Government
(D) Having legal experience
B
hat happens if a director consents to an offence by the company?
(A) They are exempt from liability
(B) They may also be liable for the offence
(C) Only the company is punished
(D) They face a lesser penalty
B
What is the legal significance of the term “connivance” in Section 27?
(A) It implies ignorance
(B) It suggests active involvement or consent
(C) It has no legal significance
(D) It refers to a lack of action
B
Which of the following can be attached for recovery of dues?
(A) Only bank accounts
(B) Only real estate
(C) Movable and immovable property
(D) Personal belongings only
C
What must a Recovery Officer do to recover amounts owed?
(A) File a lawsuit
(B) Draw up a statement certifying the amount due
(C) Wait for voluntary payment
(D) Seek help from creditors
B
What do the provisions of the Income-tax Act apply to in Section 28A?
(A) General taxation
(B) Only personal taxes
(C) Recovery processes under this Act
(D) Corporate taxation
C
What is the liability of a company’s director if an offence is due to their neglect?
(A) No liability
(B) Full liability as an individual
(C) Limited liability
(D) Only liable for fines
B
What authority can a Recovery Officer seek assistance from?
(A) High Court
(B) Local district administration
(C) The company’s board
(D) Shareholders
B
If a company commits an offence, who bears the liability?
(A) Only the shareholders
(B) The company and its responsible individuals
(C) Only the directors
(D) No one bears liability
B
What is the recovery process for non-compliance under Section 28A?
(A) Only fines are imposed
(B) A series of measures can be undertaken
(C) The case is dropped
(D) Only legal action is taken
B
What happens if a Recovery Officer fails to recover an amount?
(A) The case is dismissed
(B) No further action is taken
(C) The officer may be penalized
(D) There is no specific provision in the Act
D
What must a person demonstrate to avoid liability under Section 27?
(A) Complete ignorance of company operations
(B) Lack of knowledge and exercise of due diligence
(C) Resignation before the offence
(D) Full cooperation with authorities
B
What defines a “director” in the context of a firm?
(A) A legal representative
(B) A partner in the firm
(C) A company officer
(D) An external advisor
B
If a penalty is not paid, which of the following can a Recovery Officer NOT do?
(A) Attach bank accounts
(B) Transfer property to another company
(C) Arrest the individual
(D) Attach movable property
B
Which section outlines the powers of a Recovery Officer?
(A) Section 26
(B) Section 27
(C) Section 28A
(D) Section 28
C
What happens to transferred property after a penalty is due?
(A) It remains unaffected
(B) It is excluded from recovery
(C) It can be included in recovery actions
(D) It is automatically seized
C
Who can be held accountable for a company’s offence aside from the company itself?
(A) Only shareholders
(B) Any individual responsible for business conduct
(C) External auditors
(D) None
B
What must be proven by an individual to avoid penalties if an offence occurred?
(A) Knowledge of the offence
(B) Active involvement
(C) Due diligence and lack of knowledge
(D) Resignation
C
In terms of recovery, who may assist a Recovery Officer?
(A) High Court judges
(B) Local district administration
(C) Company executives
(D) Shareholders
B
What do the terms “attachment” refer to in recovery procedures?
(A) Freezing assets
(B) Selling the company
(C) Closing bank accounts
(D) Reducing penalties
A
What is the implication of “connivance” in corporate offences?
(A) Indifference to company policies
(B) Active participation or consent to an offence
(C) Lack of awareness
(D) Dismissal from the company
B
What is the relationship between Recovery Officers and the Income-tax Act?
(A) They have no relation
(B) The provisions of the Income-tax Act apply to recovery actions
(C) They contradict each other
(D) Only tax officials can recover dues
B
What is the primary role of the Recovery Officer?
(A) To provide legal advice
(B) To recover penalties and dues
(C) To manage company operations
(D) To represent companies in court
B
What happens to property transferred to family members after a penalty becomes due?
(A) It is exempt from recovery
(B) It may still be included for recovery
(C) It automatically transfers back to the individual
(D) No recovery actions can be taken
B
What is necessary for an individual to be considered in charge of a company?
(A) Being a partner
(B) Holding a managerial position
(C) Having decision-making authority
(D) Being a shareholder
C
How does the Act define “due diligence”?
(A) Regular auditing of finances
(B) Efforts made to prevent an offence
(C) Knowledge of all company actions
(D) Compliance with external regulations
B
Which of the following can be subject to attachment for recovery?
(A) Only bank accounts
(B) Only immovable property
(C) Both movable and immovable property
(D) Personal property only
C
Who is responsible for enforcing recovery actions?
(A) The Central Government
(B) Recovery Officers authorized by the Board
(C) External auditors
(D) Shareholders
B
What is the effect of a person proving due diligence?
(A) Exemption from all penalties
(B) Possible avoidance of penalties for the offence
(C) Immediate dismissal from the company
(D) Automatic legal protection
B
What must be established before a Recovery Officer can act?
(A) Proof of company wrongdoing
(B) Authorization from the Board
(C) Shareholder approval
(D) Court order
B
What is the role of the Board in recovery actions under the Act?
(A) To oversee the company’s operations
(B) To authorize Recovery Officers
(C) To prosecute offenders
(D) To manage company finances
B
What authority does the Central Government have under Section 29?
(A) To conduct investigations
(B) To make rules for carrying out the purposes of the Act
(C) To issue fines
(D) To approve corporate accounts
B
Which of the following is NOT mentioned as a specific rule that the Central Government can make?
(A) The term of office for the Chairman
(B) Conditions for board member salaries
(C) Taxation on capital gains
(D) The manner of maintaining accounts
C
What is a function of the Board as per the rules?
(A) Establishing new companies
(B) Determining the additional functions under section 11
(C) Auditing corporate accounts
(D) Appointing directors
B
What does Section 30 allow the Board to do?
(A) Change the Act
(B) Make regulations consistent with the Act
(C) Investigate frauds
(D) Suspend directors
B
Which of the following is a matter that regulations may cover under Section 30?
(A) Criminal offenses
(B) Times and places of meetings of the Board
(C) Public policy
(D) Tax exemptions
B
The regulations may specify conditions for the issuance of what?
(A) Corporate loans
(B) Certificates of registration
(C) Shareholder rights
(D) Bankruptcy filings
B
Who can issue rules for the investigation of misbehaviour within the Securities Appellate Tribunal?
(A) The Supreme Court
(B) The Central Government
(C) The Board
(D) The Parliament
B
What is the purpose of the rules made under Section 29?
(A) To regulate taxation
(B) To carry out the purposes of the Act
(C) To punish offenders
(D) To provide legal counsel
B
Which section discusses the maintenance of the Board’s accounts?
(A) Section 11
(B) Section 15
(C) Section 29
(D) Section 30
B
What must the Board’s regulations be consistent with?
(A) State laws
(B) Local governance
(C) The Act and rules made under it
(D) International laws
C
Under which subsection can the conditions for the certificate of registration be determined?
(A) Subsection (1) of Section 11
(B) Subsection (2) of Section 11
(C) Subsection (2) of Section 12
(D) Subsection (3) of Section 12
C
What does Section 30(2)(c) address?
(A) Company auditing
(B) Issuance of securities
(C) Criminal behaviour
(D) Tax assessments
B
What does subsection (da) of Section 30 specify?
(A) The manner of account maintenance
(B) The procedure for settlement proceedings
(C) The types of investments
(D) The role of shareholders
B
Which section allows for the determination of officers’ service terms in the Board?
(A) Section 11
(B) Section 15
(C) Section 29
(D) Section 30
C
What is the relationship between the Central Government and the Board regarding regulations?
(A) The Central Government cannot interfere
(B) The Board must seek permission from the Central Government
(C) The Board makes regulations with respect to the Act
(D) The Central Government must approve all Board regulations
C
Which of the following may be included in the regulations?
(A) Appointment of auditors
(B) Procedures for company mergers
(C) Times and procedures for Board meetings
(D) Taxation of corporate profits
C
What must the conditions for the certificate of registration include?
(A) The duration of validity
(B) The fee amount
(C) The qualifications of applicants
(D) The nature of business
B
What may the rules provide for regarding appeals?
(A) The fees payable for filing an appeal
(B) Automatic acceptance of all appeals
(C) Denial of all appeals
(D) Only appeals related to penalties
A
Who is responsible for the implementation of rules made under Section 29?
(A) The President of India
(B) The Board
(C) The State Government
(D) Shareholders
B
What can be a subject of inquiry under Section 29?
(A) Company profitability
(B) Misbehaviour of Tribunal officials
(C) Tax compliance
(D) Shareholder decisions
B
Which of the following does NOT fall under the purview of regulations as per Section 30?
(A) Times and places of Board meetings
(B) Issuance of securities
(C) Tax exemptions
(D) Conditions for service of Board employees
C
What does Section 30(1) empower the Board to do?
(A) Make rules inconsistent with the Act
(B) Enforce laws directly
(C) Make regulations to carry out the purposes of the Act
(D) Appoint external auditors
C
What is NOT a function of the Central Government regarding the rules?
(A) Establish the term of office for the Chairman
(B) Define additional functions of the Board
(C) Mandate corporate audits
(D) Prescribe how accounts are maintained
C
Under Section 29, what form of notification is required to make rules?
(A) Written notice
(B) Public notification
(C) Notification by gazette
(D) Email notification
C
What aspect of the Board’s operation can be regulated under Section 30?
(A) Investment strategies
(B) Meeting procedures
(C) Shareholder rights
(D) Taxation
B
What can regulations under Section 30 detail about officers and employees of the Board?
(A) Their salaries and allowances
(B) Their age limits
(C) Their training requirements
(D) Their voting rights
A
Which body makes regulations under Section 30?
(A) The Supreme Court
(B) The Central Government
(C) The Board
(D) The Parliament
C
The rules for the inquiry under sub-section (1) of section 15-I relate to what?
(A) Audit processes
(B) Investigation of company misconduct
(C) Protection of shareholders
(D) Corporate taxation
B
What role does the Central Government have concerning the Securities Appellate Tribunal?
(A) It appoints all tribunal members
(B) It establishes regulations and rules
(C) It reviews tribunal decisions
(D) It oversees tribunal operations
B
What can the Central Government make rules for under Section 29?
(A) Corporate marketing
(B) Carrying out the purposes of the Act
(C) Setting tax rates
(D) Determining market prices
B
Under Section 30(1), regulations must be consistent with which of the following?
(A) Local laws
(B) International regulations
(C) The Act and rules made under it
(D) Other governmental regulations
C
Which of the following can the Central Government regulate under Section 29?
(A) National policies
(B) The term of office for the Chairman
(C) Company mergers
(D) Corporate tax rates
B
What is required for the Board to hold meetings as per Section 30?
(A) External auditors
(B) A defined procedure and quorum
(C) Government approval
(D) Shareholder consensus
B
What is NOT a power granted to the Board under Section 30?
(A) Making regulations for meeting procedures
(B) Determining the conditions for registration certificates
(C) Conducting criminal investigations
(D) Regulating employee terms and conditions
C
Which aspect of the Board’s functions is covered under regulations?
(A) Marketing strategies
(B) The conditions of service of its officers
(C) External funding
(D) Board elections
B
What does Section 29 specifically empower the Central Government to do?
(A) Make rules for company audits
(B) Implement taxation policies
(C) Create rules for the Act’s implementation
(D) Conduct market research
C
The regulations made by the Board can cover which of the following?
(A) Tax evasion policies
(B) The issue of capital and disclosures by companies
(C) Criminal prosecution
(D) International trade agreements
B
Which of the following does Section 30 NOT mention as a focus of regulations?
(A) Conditions for issuing certificates
(B) Internal corporate governance
(C) Manner of disclosing capital issues
(D) Meeting procedures
B
What is the objective of the rules created by the Central Government?
(A) To limit company operations
(B) To provide a framework for the Act’s purposes
(C) To impose additional fines
(D) To define corporate structures
B
What must the rules established by the Central Government specifically aim to achieve?
(A) Enhance market competition
(B) Ensure transparency and accountability
(C) Protect investor interests
(D) Carry out the purposes of the Act
D
Under Section 30, who determines the terms and conditions for the Board’s employees?
(A) The Central Government
(B) The Board itself
(C) Shareholders
(D) External auditors
B
Which section outlines the procedure for the investigation of the Board members?
(A) Section 29
(B) Section 30
(C) Section 15-Q
(D) Section 11
C
What can the regulations specify about the settlement proceedings?
(A) Penalties for fraud
(B) Terms determined by the Board
(C) Tax implications
(D) Corporate governance structures
B
Which aspect of the Securities Appellate Tribunal does Section 30 address?
(A) Criminal investigations
(B) The process for filing appeals
(C) Meeting locations
(D) Conditions for member appointments
B
What kind of matters can the rules cover, as mentioned in Section 29?
(A) General corporate policies
(B) Any matter prescribed or specified by rules
(C) Only matters concerning taxation
(D) None of the above
B
Who is responsible for making rules about the reporting to the Central Government?
(A) The Board
(B) The Central Government
(C) The Securities Appellate Tribunal
(D) Shareholders
A
What is NOT covered by the provisions of Section 30 regarding the regulation-making process?
(A) The procedures for meetings
(B) Conditions for issuing certificates
(C) The penalties for corporate misconduct
(D) The terms for Board employees
C
What aspect of the Securities Appellate Tribunal can be regulated according to Section 30?
(A) The process of financial audits
(B) The procedures for investigating misconduct
(C) The conditions for filing appeals
(D) The rules for public disclosures
C
The term ‘regulations’ in Section 30 refers to rules made by which entity?
(A) The Central Government
(B) The Securities Appellate Tribunal
(C) The Board
(D) Shareholders
C
What is the significance of making regulations consistent with the Act?
(A) To ensure clarity and legal compliance
(B) To restrict the Board’s authority
(C) To create additional penalties
(D) To allow for arbitrary decision-making
A
According to Section 31, within how many days must rules be laid before Parliament after being made?
(A) 15 days
(B) 30 days
(C) 45 days
(D) 60 days
B
What is the purpose of laying rules before each House of Parliament under Section 31?
(A) Approval for repeal
(B) Modification or annulment
(C) Public scrutiny
(D) Budget approval
B
Section 32 specifies that provisions of the Act are:
(A) In addition to other laws
(B) A replacement for other laws
(C) Only valid within specific states
(D) Only applicable during sessions
A
What happens if both Houses do not agree on a rule within 30 days under Section 31?
(A) It remains effective
(B) It is automatically repealed
(C) It becomes void
(D) It requires a re-vote
A
What authority does the Central Government have under Section 34?
(A) Appoint new Board members
(B) Make provisions for removing difficulties
(C) Issue new laws
(D) Dissolve the Act
B
How long after the Act’s commencement can Section 34 powers be exercised?
(A) 1 year
(B) 3 years
(C) 5 years
(D) 10 years
C
What is the main purpose of Section 34A?
(A) Validate certain actions taken previously
(B) Issue new regulations
(C) Overturn previous court rulings
(D) Repeal outdated regulations
A
Section 31 provides that rules may be laid before Parliament for multiple sessions if required. How many?
(A) 1
(B) 2 or more
(C) Only continuous sessions
(D) No limit specified
B
The ‘Repeal and Saving’ clause in Section 35 applies to which ordinance?
(A) Indian Companies Act
(B) Securities and Exchange Board of India Ordinance, 1992
(C) Income-tax Ordinance
(D) Banking Regulation Ordinance
B
If an order is made under Section 34, it must be:
(A) Ratified by shareholders
(B) Published in the Official Gazette
(C) Signed by the Prime Minister
(D) Sent to state governments
B
Under Section 31, if both Houses modify a rule, it takes effect in what form?
(A) The original form
(B) Only in the modified form
(C) Annulled automatically
(D) Delayed for 30 more days
B
Section 32 ensures that this Act’s provisions are:
(A) Overriding other laws
(B) Subject to other laws
(C) Complementary to other laws
(D) Limited to tax matters
C
If both Houses of Parliament annul a rule, it:
(A) Remains valid until repealed
(B) Has no effect
(C) Requires an amendment
(D) Is sent back for revision
B
Section 34 allows for orders to be issued to remove difficulties, but such orders must be:
(A) Reviewed by a committee
(B) Published in the Gazette
(C) Filed with the Registrar
(D) Kept confidential
B
Which section validates actions taken for international information exchange?
(A) Section 31
(B) Section 32
(C) Section 34A
(D) Section 35
C
Under Section 35(2), actions taken under the 1992 Ordinance are considered as:
(A) Invalid
(B) Repealed
(C) Valid under the new Act
(D) Suspended
C
What is the primary intent of Section 34A?
(A) To enable fines
(B) To validate certain actions retroactively
(C) To revise employee regulations
(D) To authorize tax collection
B
Under Section 31, how does modification of a rule by Parliament affect its validity?
(A) It is no longer valid
(B) It remains valid as originally written
(C) It only remains valid in modified form
(D) It is delayed
C
Who has the power to make changes for the smooth operation of the Act, as per Section 34?
(A) The Board
(B) State governments
(C) The Central Government
(D) The High Court
C
What happens to previously completed actions under repealed ordinances as per Section 35?
(A) They are deemed invalid
(B) They are valid under the Act
(C) They need to be repeated
(D) They are reviewed by Parliament
B
According to Section 31, a rule laid before Parliament is annulled if:
(A) The President disapproves
(B) Both Houses agree it should not be made
(C) One House agrees to annul it
(D) It is not reviewed in 60 days
B
Section 32 indicates that the Act’s provisions work in conjunction with:
(A) International treaties
(B) Other existing laws
(C) Budgetary acts
(D) State regulations
B
The power to remove difficulties under Section 34 is limited by:
(A) The end of the first session
(B) A five-year period
(C) Budget constraints
(D) Ministerial discretion
B
Section 34A validates actions taken under the Act concerning:
(A) Market transactions
(B) Information exchanges and settlements
(C) Shareholder meetings
(D) Loan agreements
B
Under Section 31, what can Parliament do if it disagrees with a rule?
(A) Modify or annul it
(B) Delay it for six months
(C) Repeal the entire Act
(D) Escalate to the Supreme Court
A
In the event of annulment by Parliament, a rule’s prior actions are:
(A) Invalidated
(B) Protected as valid
(C) Required to be re-filed
(D) Subject to review
B
Section 35 addresses the repeal of which Ordinance?
(A) SEBI Ordinance, 1992
(B) Companies Ordinance, 1991
(C) Tax Ordinance, 1989
(D) Stock Market Ordinance, 1990
A
For rules made under this Act, what duration can the 30 days be spread over in Parliament?
(A) One session only
(B) Multiple sessions
(C) Until a vote is called
(D) Within the first 15 days
B
As per Section 32, the Act’s provisions are not:
(A) Overriding other laws
(B) Subject to other laws
(C) Limited to federal laws
(D) Derogating any other law
D
What does Section 34A ensure about acts done before the amendment?
(A) They are void
(B) They are validated retroactively
(C) They require re-approval
(D) They are under review
B
