SEBI SHARE MARKET - NI

Question 1

Money Market duration

Answer 1

Less than 1 year or 1 year

Question 2

Capital market duration

Answer 2

More than 1 year

Question 3

Future market ?

Answer 3

Parties contract today to buy/ sell something at sepcific price on a future date.

Question 4

Features of short term debt instrument

Answer 4

Tenure less than 1 year
Sold at discount and repurchased at face value
Traded at money Market
Negotiable and transferable in Nature
Called NEAR MONEY as they are highly liquid assets

Question 5

What all is traded at money Market

Answer 5

Govt - T- Bill, CMB, WMA
Firm - C- Paper , Pro- notes
FI: CoD , Call Money, Notice , Repo

Question 6

What all is traded at Capital Market

Answer 6

Govt : G- Sec , Sovereign Bonds

Firm: Share, Bond/Debenture

Question 7

Can state government issues treasury bill ?

Answer 7

No

Question 8

Full form of CMB ( short term debt instrument)

Answer 8

Cash Management Bills

Question 9

What is ways and means advances

Answer 9

When government faces short term mismatch in income and expenditure RBI lends money on short term (3 months ) not counted in fiscal deficit figure

During Atmanirbhar Bharat ,covid times RBI increased nthe Ways and means advances limits by 60% than before to help the union and State governments.

Question 10

What is the loan interest rate of ways and means advances?

Answer 10

If upto limited amount borrowed - repo rate

More than it borrowed - The. Repo + 2%

Question 11

Consolidated sinking fund was started in

Answer 11

1999

Question 12

What is consolidated sinking fund

Answer 12

Annually state government has to contribute money equal to 1-3% of its outstanding Market loans to this fund kept with RBI.

It is outside consolidated fund of the state and public account of the state

Question 13

What is the purpose of Consolidated sinking Fund

Answer 13

Repayment redemption of loans taken by state government only

Question 14

Short term debt instrument for company

Answer 14

Bill of exchange ,hundi , commercial papers , promissory notes

Question 15

Short term debt instrument of banks/Nbfc

Merchant to bank

Answer 15

Certificate of deposit

Commercial bill.

Question 16

What is call money and Notice money

Answer 16

Call money is the interest rate when financial intermediaries borrow for one day among themselves.
Notice money is same but duration is 2-14 days

Question 17

What is bill discounting in short term debt .

Answer 17

MSME pledges his unpaid invoice to a factor ( bank/ NBFC) to avail loans.

In bill discounting MSME seller collects money from Buyer and delivers it to the factor

Question 18

What is factoring in short term debt

Answer 18

In this the factor or lender directly collects the money or unpaid invoices from Buyer.

Question 19

What are the features of Factoring regulation Amendment Act 2011

Answer 19

Banks of all types of NBFCs allowed to give loans now

RBI given more powers to regulate this buisness.

More legal clarity about TReDS system

Need to Register the invoice Pledge factoring loan transaction bon a Central registry set up under the SARFAESI ACT.

Question 20

What is TReDS platform

Answer 20

Trade Receivables Electronic Discounting System online Platform connect the factors with the borrowers

Eg M1 exchange , RXIL and A. TReDS

They have to register with RBI

Question 21

RXIL is owned by

Answer 21

SIDBI, NSE, STATE BANK, ICICI , YES BANK