Financial Markets

Question 1

……………………………………………….are any electronic system, other than a recognised stock exchange, on which transactions in eligible instruments like securities, money market instruments, foreign exchange instruments, derivatives, etc. are contracted

Answer 1

ETPs (Electronic Trading Platforms)

Question 2

The robustness and reliability of ………………………………are critical for efficient pricing and valuation of financial instruments

Answer 2

Financial Benchmarks

Question 3

Which are the Significant benchmark Rates after July 01, 2023

Answer 3

(i) Overnight Mumbai Interbank Outright Rate (MIBOR)
(ii) USD/INR Reference Rate
(iii) Treasury Bill Rates
(iv) Valuation of Government Securities
(v) Valuation of State Development Loans (SDL)
(vi) Modified Mumbai Interbank Forward Outright Rate (MMIFOR)
Note: MIFOR administered by FBIL shall cease to be a ‘significant benchmark’ after June 30, 2023

Question 4

Who can access uncollateralised segment of Money market i.e call, notice and term money market?

Answer 4

banks and primary dealers, subject to prudential limits

Question 5

Who can access collateralised segment of Money market i.e triparty repo, market repo and repo in corporate bonds?

Answer 5

by banks, primary dealers, mutual funds, insurance companies and corporates

Question 6

Persons resident in India are also permitted to hedge their commodity price risk and freight risk in overseas markets except………………….

Answer 6

gold, gems, and precious stones. (Gold Prices can be hedged now in IFSCs)

Question 7

In the OTC markets, retail users are permitted to buy protection only for the purpose of …………..

Answer 7

Hedging

Question 8

In the OTC markets, non-retail users are permitted to buy protection only for the purpose of …………..

Answer 8

to buy protection for hedging or otherwise

Question 9

Non-retail users such as regulated financial entities and FPIs are also permitted to

Answer 9

sell protection

Question 10

Foreign Portfolio Investors (FPIs) have how many routes to invest in debt? Name them?

Answer 10

Medium Term Framework (MTF) ii. Voluntary Retention Route (VRR) iii. Fully Accessible Route (FAR)

Question 11

under Medium Term Framework (MTF) route where can FPIs invest?

Answer 11

invest in all government securities, including treasury bills, and corporate bonds within an overall limit, fixed as a percentage of the total outstanding stock of government securities and corporate bonds

Question 12

under Voluntary Retention Route (VRR) route where can FPIs invest?

Answer 12

It gives a combined investment limit to FPIs through which they can either invest in government or corporate debt and are subject to minimum retention period of three years

Question 13

LEI is a …………….-digit unique code to identify parties to financial transactions worldwide

Answer 13

20

Question 14

………………………………….are one of the most important market infrastructure on account of their ability to make the opaque OTC derivative market transparent.

Answer 14

Trade repositories (TR)

Question 15

Committee on Financial Benchmarks

Answer 15

P Vijay Bhaskar