Securities and Exchange Board of India (SEBI) Additional One Mark

Securities and Exchange Board of India (SEBI) Additional One Mark Online Test (12th Standard Commerce)

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When SEBI was first set up in 1988, what was its status?

A.A statutory body under the SEBI Act B.A department of the Reserve Bank of India C.A non-statutory body without statutory powers D.A self-regulatory organisation of brokers

On which date did the Government of India make SEBI an autonomous body?

A.12 May 1992 B.13 September 1994 C.12 May 1988 D.13 September 1992

Match the regional offices of SEBI with their cities.
(a) Northern Regional Office - 1. Ahmedabad
(b) Eastern Regional Office - 2. Chennai
(c) Southern Regional Office - 3. New Delhi
(d) Western Regional Office - 4. Kolkata

A.(a)-3, (b)-4, (c)-2, (d)-1 B.(a)-4, (b)-3, (c)-1, (d)-2 C.(a)-3, (b)-2, (c)-4, (d)-1 D.(a)-1, (b)-4, (c)-2, (d)-3

In which business district of Mumbai is the SEBI headquarters located?

A.Nariman Point B.Dalal Street C.Bandra Kurla Complex D.Fort area

Which one of the following is NOT one of the three key functions that SEBI performs?

A.Quasi-legislative B.Quasi-judicial C.Quasi-executive D.Quasi-federal

Buying and selling of securities by directors, promoters and others who have access to confidential information about the company, to take advantage of it, is called ____.

A.Insider trading B.Dematerialization C.Underwriting D.Portfolio management

Which of the following is NOT one of the objectives of SEBI listed in the lesson?

A.Regulation of stock exchanges B.Protection to the investors C.Issue of currency notes D.Control over brokers

Protecting investors from wrong information given by companies in their prospectus and reducing the risk of delivery and payment is described in the lesson as ____.

A.Control over brokers B.Protection to the investors C.Regulation of stock exchanges D.Checking insider trading

Consider the following statements about the functions of SEBI.
1. Registration of brokers and sub-brokers is mandatory.
2. SEBI regulates mergers and acquisitions to protect the interest of investors.
3. SEBI provides training to financial intermediaries.
4. SEBI collects income tax from listed companies.
Which of these are correct?

A.1 and 4 only B.1, 2 and 3 only C.2, 3 and 4 only D.1, 2, 3 and 4

Q10

Assertion (A): SEBI motivates financial intermediaries to create their own professional associations.
Reason (R): Self-regulation is considered preferable to external regulation.

A.Both A and R are true and R is the correct explanation of A B.Both A and R are true but R is not the correct explanation of A C.A is true but R is false D.A is false but R is true

Q11

Why has SEBI issued guidelines on mergers and takeovers?

A.To raise the share prices of the merging companies B.So that mergers and takeovers are not at the expense of small investors C.To stop all takeovers of listed companies D.To collect stamp duty on the transfer of shares

Q12

Besides imposing monetary penalties on capital market intermediaries for violations, what further action can SEBI take against them?

A.Suspend their registration for a short period B.Nationalise their business C.Close the stock exchange permanently D.Cancel their PAN

Q13

Through which notification did SEBI receive several powers under the Securities Contracts (Regulations) Act?

A.A Reserve Bank notification of 12 May 1992 B.A Ministry of Finance notification of 13 September 1994 C.An NSE circular of December 1996 D.A BSE circular of December 1997

Q14

The process by which an investor's physical share certificates are taken back and destroyed, and an equal number of securities in electronic form are credited to his account, is called ____.

A.Rematerialisation B.Listing C.Underwriting D.Dematerialization

Q15

Securities held in dematerialized form are said to be fungible. This means that they ____.

A.carry distinctive numbers for each share B.can be held only by banks C.are identical and interchangeable, with no distinguishing features D.cannot be sold for one year

Q16

Which company was the first to trade its shares in demat form on the NSE in December 1996?

A.Tata Steel B.Reliance Industries C.Infosys D.State Bank of India

Q17

Arrange the following events in chronological order.
1. Demat trading begins on the BSE
2. SEBI is first established
3. Demat trading begins on the NSE
4. SEBI Act is passed by Parliament

A.2, 4, 1, 3 B.4, 2, 3, 1 C.2, 4, 3, 1 D.2, 3, 4, 1

Q18

Consider the following statements about the benefits of dematerialization.
1. Risks such as loss, theft, forgery and damage of certificates are eliminated.
2. No stamp duty is needed for transfer of securities.
3. A loan can be taken against securities held in a demat account.
4. A demat account holder can buy or sell only a limited number of shares.
Which of these are correct?

A.1 and 2 only B.2, 3 and 4 only C.1, 3 and 4 only D.1, 2 and 3 only

Q19

According to the lesson, a demat account is to shares what a ____ is to money.

A.bank account B.stock exchange C.prospectus D.share certificate

Q20

Arrange the steps of opening a demat account in the correct order.
1. In-person verification by a member of the DP's staff
2. Fill up the account opening form and submit it with the documents
3. The DP provides an account number or client ID

A.1, 2, 3 B.2, 3, 1 C.2, 1, 3 D.3, 2, 1

Q21

PAN, used as an identity proof for a demat account, is a unique ____ identity allotted to each taxpayer by the Income Tax Department.

A.8-digit numeric B.10-digit alphanumeric C.12-digit numeric D.16-digit alphanumeric

Q22

Which document appears in the lesson's list of address proofs for a demat account but not in its list of identity proofs?

A.PAN card B.Voter's ID C.Ration card D.Driving licence

Q23

Assertion (A): A demat account can be opened with no balance of shares.
Reason (R): A demat account holder pays no fees of any kind to the Depository Participant.

A.Both A and R are true and R is the correct explanation of A B.Both A and R are true but R is not the correct explanation of A C.A is true but R is false D.A is false but R is true

Q24

A bank chairman tipped off a friend to buy his bank's shares before a takeover announcement, and SEBI detected it through inspection and enquiries of the brokers and imposed a heavy penalty. Which SEBI function does this case show?

A.Barring insider trading in securities B.Registering mutual funds C.Providing training to intermediaries D.Levying fees to carry out the Act

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About this Securities and Exchange Board of India (SEBI) test

This free online practice test covers Securities and Exchange Board of India (SEBI) from the 12th Standard Commerce (Samacheer Kalvi) syllabus. Choose the number of questions and an optional time limit, then answer and submit — everything is checked in your browser, with the correct answers and a worked explanation shown at the end. For the full solutions to every question in this set, see the solved MCQs page.

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