[Link] regulatory bodies govern merchant banking activities in India.
SEBI – Securities and Exchange Board of India
RBI – Reserve Bank of India
Ministry of Finance
Stock Exchanges – e.g., NSE, BSE
Company Law Board (CLB) / National Company Law Tribunal (NCLT)
Registrar of Companies (ROC)
Department of Corporate Affairs
Institute of Chartered Accountants of India (ICAI) – for compliance and audit standards
2. Process of evaluating project financial economic and technical feasibility is known as
Project Appraisal
3. Commercial paper is a type of
Money Market Instrument
4. Capital structure of a company refers to
Mix of Debt and Equity
5. Merchant bankers mainly operating in the Primary market
6. Which instrument is used for short term borrowings by the government
Treasury Bills (T-Bills)
7. Which of the following is the key feature of the book building process
Price Discovery
8. Prospectus is issued in which type of public issue
Fixed Price Issue
9. Bought out deals are generally associated with Institutional
investors
10. Underwriting in a public issue means Guarantee of Subscription
11. Which of the following is a method of not issuing securities
A. Offer for sale
B. Bonus issue
C. Private placement
D. Write issues
12. Buyback of shares leads to Reduction in Share Capital
13. Which body regulates listing requirements in India SEBI (Securities and Exchange Board of
India)
14. Commercial banks primarily deal in Credit and Deposits
15. Which functions of commercial banks involve lending money to customers Advancing of Loans
16. The difference between a banks interest income and interest expenses is known as Net Interest
Margin (NIM)
17. Which of the following is considered as an asset of commercial bank
A. DD
B. Savings deposit
C. Loan to customers
D. Capital reserves
18. UPI is regulated by NPCI (National Payments Corporation of India)
19. NBFC is a regulated by RBI (Reserve Bank of India)
20. Which of the following services is not offered by NBFC
A. Accepting DD
B. Leasing and HP
C. Venture capital financing
D. Equipment financing
21. Which of the following is a source of funds for NBFC’s
Debentures
22. Which of the following is an example of NBFC’s
in India
A. SBI
B. LIC housing finance
C. RBI
D. NABARD
23. RBI classify NBFC’s based on
Liability and Activity
24. Which recent trend is significantly impacting the NBFC sector
A. Disinvestment
B. Digital lending and fintech integration
C. Privatization of NBFC’s
D. Merger of public sector NBFC’s
25. The oldest credit rating agencies in India is
CRISIL (Credit Rating Information Services of India Limited)
26. Rating symbols like P1 or A1+ are generally used for
Short-term Instruments
27. Rating agencies are regulated in India by
SEBI (Securities and Exchange Board of India)
28. Which rating indicates the lowest credit risk
A. BBB
B. B+
C. AA
D. AAA
29. The process of ongoing review of assigned ratings is known as
Surveillance
30. Which agency is a joint venture with moody's and functions in India
ICRA (Investment Information and Credit Rating Agency)
31. Factoring involves
A. Sale of goods on credit
B. Discounting of bills of exchange
C. Financing against securities
D. Sale of accounts receivable
32. Which of the following institutions introduced factoring services in India
SBI (State Bank of India)
33. The risk of default in leasing finance is borne by
Lessor
34. Which of these is not a benefit of lease
A. Tax shield on lease rental
B. Ownership at inception
C. 100% financing
D. Flexibility in payment terms
35. Which one is a key feature of housing finance
A. No security required
B. Short term in nature
C. Collateralised by property
D. High interest rate
36. What is the primary form of funding provided by VC
Equity Financing
37. Which of the following describes the nature of VC investments
A. Low risk low return
B. Medium risk medium return
C. High risk high return
D. Low risk guarantee return
38. Which of the following is not a core element of VC
A. Long term investment
B. Equity participation
C. Collateral based lending
D. Support beyond capital
39. In which year did SEBI issue guidelines for VC funds in India
1996
40. The first venture capital fund in India was launched by
IDBI (Industrial Development Bank of India)
41. Which of the following is a legal document that outlines shareholders rides and governance
Shareholders’ Agreement
42. Which global we see firm invested early in Indian startups like Flipkart and Ola
Tiger Global
43. Which initiative by the Indian government in 2016 helped promote startups and VC
Startup India