Financial Markets- 1

Question 1

News-SEBI came up with wider disclosure norms for CRAs. Intro —– under which CRAs have to disclose the probability of going default for the issuers.
Also provides for formulation of Uniform SOP for – and — of —.

Answer 1

Probability of default mechanism.

Tracking and recognition of defaults in timely manner.

Question 2

CRAs in India are regulated by— through —-. This act provides for a —-. in toto – agencies registered, they are—.

Answer 2

SEBI through SEBI (CRA) Regulations, 1999. It provides disclosure based regulatory regimes.
7 CRAs- CRISIL, ICRA, CARE, India ratings and research, SMERA, Infomerics and brickworks.

Question 3

RBI set up task force under —- to examine the possibilities of a secondary market
for corporate loans in India.
This Task force suggested creating a self regulatory body for —- and to set apt benchmark for purchase and sale of —-.

Answer 3

TR Manoharan.
secondary markets.
Corporate loans.

Question 4

Earlier- —– comte had given recmd about developing the corporate bond market.

Answer 4

H.R. Khan comte

Question 5

True or false-

In Budget 2019-20 it was announced that FPIs will be allowed to invest in debt securities issued by all debt funs.

Answer 5

False. FPIs are allowed to invest in debt securities issued ONLY by Infra debt funds.

Question 6

RBI notified — to guarantee of bonds issued by COMPLETED projects. Moreover est of a platform for —- to raise capital as equity, debt or units like mutual funds was also announced in budget.

Answer 6

Est of Credit Guarantee Enhancement Corporation.

Platform for listing social enterprises and voluntary orgs.

Question 7

Investment limit for FPIs in govt and corporate bonds, in short term bonds should not exceed —. This also includes — and —-. and same rules applicable for —-.

Answer 7

20% of the total investment of that FPI. this includes central govt bonds, sec, t-bills, state devlpment loans.
Same norms applicable on investment in corporate bonds.

Question 8

Relaxation in — route for FPI investments in debts has also been given by —.

Answer 8

Voluntary retention route- RBI

Question 9

Under this route- ----- - investments are free of
the regulatory norms applicable to FPI
investments in debt markets, provided
FPIs --- commit to retain a
required minimum percentage of their
investments in India for a period.
- The minimum retention period is ----, or as decided by --- for each allotment by tap or auction.
- The investment cap through ---- has
been ----.

Answer 9

Voluntary retention route.
voluntarily.
Three years. 
RBI
Through VRR- Doubled to Rs 1.5 lakh crore.

Question 10

Bonds have a maturity period of — or more. Price fixed by issuer is —- and annual interest rate upon it is —-.

Answer 10

One year or more.
Face value.
Coupon payment.

Question 11

Effective rate of return on bonds on profit earned on bonds is aka —-.— are considered to be the safest.

Answer 11

Bond yield.

Govt bonds aka G-secs in India, treasury in US and gilts in UK.

Question 12

Graphical representation of yields for bonds with an equal — is called as —-.
if economy is expected to grow normally then the yield curve is —, when expected to grow marginallly then it is — and when it is going to slow down it is —.

Answer 12

Credit rating- yield curve.
Upward sloping.
flat.
inverted.

Question 13

Bond yeild inversion is when yield of longer tenure bond is — than that of short tenure bond. It signals —-. Which also means that demand of — will be much — in the future.

Answer 13

Less.

Recession.

Question 14

— set up as trustee company to manage and operate various credit guarantee trust funds and is set up —-.

Answer 14

National Credit guarantee trustee company ltd.- Dept of fin services, min of fin.

Question 15

—– has listed its —- Masala bonds worth —- on the

Global Securities Market of India International Exchange (India INX).

Answer 15

Asian Development Bank (ADB)- 10-

year- ₹850 crore-

Question 16

The India International Exchange Limited (India INX) is India’s — international stock exchange. It is located at the —,in —- . It is a subsidiary of —.
It was inaugurated in —-. It operates on —- an advanced technology platform. It is the world’s— exchange, with a turn-around time of 4 microseconds. It operates— a day, — days a week.

Answer 16

International Financial Services Centre (IFSC)- GIFT City in Gujarat- BSE Limited.
2017-EUREX T7- Fastest- 22 hours- six days a week-

Question 17

ADB’s masala bonds are dual listed on — and —.

Answer 17

Luxembourg exchange and India INX

Question 18

——– – a World Bank affiliate is the first major issuer of rupee denominated bonds in the name tag of ‘masala bonds ‘in —.

Answer 18

The International Finance Corporation (IFC)- 2014.
Any corporate, body corporate and Indian
bank is eligible to issue Rupee denominated
bonds overseas.

Question 19

True or false-
-The money raised through masala bonds can be used for real estate other than for
development of integrated township or
affordable housing projects.
- It cant be used for investing in capital markets, purchase land and on lending activities.

Answer 19

• False. It cant be used.

- True.

Question 20

Bonds can ONLY be issued in the country and can ONLY be subscribed by a resident of—- member
countries only and whose —- is a signatory to the —-.

Answer 20

Financial Action Task Force (FATF).
Securities market
regulator- International
Organization of Securities Commission's
(IOSCO’s).

Question 21

Masala bonds are regulated under —– policy of —.
Dim-sum bonds- denominated in ——.
Samurai bonad- Japan
Komodo bonds- —–

Answer 21

External Commercial Borrowings (ECB)
Policy of RBI
- Chinese renminbi- Indonesian Rupaih.

Question 22

India INX i.e. Intn fin services centre( IFSC) also launched —-, India’s– international primary market platform that
connects global investors with Indian and foreign
issuers.

Answer 22

Global Securities Market.

First