Chapter 3: Legal And Regulatory Environment Trivia Quiz

25 Questions | Total Attempts: 226

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Chapter 3: Legal And Regulatory Environment Trivia Quiz

Have you just finished covering chapter 3 on the legal and regulatory environment? There are a set of rules that a company or business is expected to follow set by the land they operate in. Take up the quiz below and see what you got to understand from the chapter and how some of the questions in the exams may be set up. All the best and keep revising!


Questions and Answers
  • 1. 
    Who is the regulatory authority for securities markets in India?
    • A. 

      IRDA

    • B. 

      RBI

    • C. 

      MoF

    • D. 

      SEBI

  • 2. 
    The applicable guidelines for mutual funds are set out in which of the following?
    • A. 

      The trust Act, 1861

    • B. 

      IRDA Act

    • C. 

      Companies Act, 1956

    • D. 

      SEBI (Mutual Funds) Regulations, 1996

  • 3. 
    Who regulates mutual funds, depositories, custodians and registrars & transfer agents in the country?
    • A. 

      RBI

    • B. 

      Trustees

    • C. 

      Ministry of Finance

    • D. 

      SEBI

  • 4. 
    Whose regulation mutual funds need to comply with regarding investment in the money market, Investments outside the country, investments from people other than Indians resident in India etc?
    • A. 

      SEBI

    • B. 

      Companies Act, 1956

    • C. 

      AMFI

    • D. 

      RBI

  • 5. 
    Whom should we approach to file an appeal against a ruling of SEBI?
    • A. 

      The consumer court

    • B. 

      The ministry of finance

    • C. 

      The EPFO

    • D. 

      The Securities Appellate Tribunal

  • 6. 
    Which of the following action do market players, in a developed world, commonly take to regulate its own members?
    • A. 

      Create their associations like AMFI

    • B. 

      Create chit funds

    • C. 

      Create information exchanges

    • D. 

      Create Self Regulatory Organizations

  • 7. 
    Wherever SROs exist, which of the following action do the statutory regulatory bodies set up by the Government take?
    • A. 

      They transfer all the powers of regulation to SRO

    • B. 

      They nominate their own members for the important posts of SRO and manage SRO

    • C. 

      They elect the members of SRO

    • D. 

      They hand over the micro regulation to the SRO and focuses on laying down the broad policy framework

  • 8. 
    Which of the following is not an SRO?
    • A. 

      BSE

    • B. 

      ICAI

    • C. 

      NSE

    • D. 

      AMFI

  • 9. 
    Which of the following is an industry body created to promote the interests of the mutual funds industry?
    • A. 

      SEBI

    • B. 

      CII

    • C. 

      NASCOM

    • D. 

      AMFI

  • 10. 
    Which of the following has an objective to undertake nationwide investor awareness programs to promote proper understanding of the concept and working of mutual funds?
    • A. 

      Mutual Funds

    • B. 

      SEBI

    • C. 

      Indian Institute of Capital Markets (IICM)

    • D. 

      AMFI

  • 11. 
    Which of the following are required to follow the standards of good practices spelled out by the AMFI Code of Ethics?
    • A. 

      The distributors while dealing with investors

    • B. 

      The trustees while managing the trusts

    • C. 

      AMFI in its own dealing with its members

    • D. 

      The Asset Management Companies

  • 12. 
    AMFI Code of ethics supplements which of the following?
    • A. 

      The bylaws of AMFI

    • B. 

      The regulations lay down under the Companies Act, 1956

    • C. 

      The regulations give under the trust deed of the mutual fund

    • D. 

      Fifth Schedule to the SEBI regulations for mutual funds

  • 13. 
    A set of guidelines and code of conduct for framed by AMFI for intermediaries, consisting of individual agents, brokers, distribution houses and banks engaged in selling of mutual fund products is known as
    • A. 

      ACE

    • B. 

      Guidelines on Ethical Behavior of Distributors

    • C. 

      Mandatory Code of Conduct and Norms

    • D. 

      AGNI

  • 14. 
    Under the AMFI guidelines and norms for intermediaries, what shall be the consequence of a proved second violation by any intermediary?
    • A. 

      AMFI will refer the matter to SEBI, which shall create an enquiry committee.

    • B. 

      AMC, not AMFI, shall take action, if any.

    • C. 

      AMFI will issue a warning letter indicating that any subsequent violation shall attract severe penalty.

    • D. 

      The registration of that intermediary shall be cancelled and intimation shall be sent to all AMC

  • 15. 
    Which of the following defines the broad investment charter of a mutual fund scheme?
    • A. 

      Investment strategy

    • B. 

      Investment policy

    • C. 

      Investment Restrictions

    • D. 

      Investment objective

  • 16. 
    Which one of the following describes the details of the portfolio that the mutual fund scheme shall maintain?
    • A. 

      Investment strategy

    • B. 

      Investment Restrictions

    • C. 

      Investment objective

    • D. 

      Investment policy

  • 17. 
    A scheme with name implying investment in a particular kind of security or sector, is most likely to have which of the following statement as its investment policy?
    • A. 

      Investment shall be made in all sectors and securities within the limits prescribed by SEBI

    • B. 

      Investment shall only be made in a particular kind of security or sector.

    • C. 

      At least 50% of its corpus of the scheme shall be invested in a particular kind of security or sector.

    • D. 

      At least 65% of its corpus of the scheme shall be invested in a particular kind of that security or sector.

  • 18. 
    Which of the following is decided more frequently by a mutual fund scheme?
    • A. 

      Investment Restrictions

    • B. 

      Investment objective

    • C. 

      Investment policy

    • D. 

      Investment strategy

  • 19. 
    What is the period within which schemes, other than ELSS, need to allot units or refund moneys to the unitholders?
    • A. 

      Within 30 days of the closure of the NFO

    • B. 

      Within 15 days of the closure of the NFO

    • C. 

      Within a week of the closure of the NFO

    • D. 

      Within 5 business days of closure of the NFO.

  • 20. 
    What is the period within which open-ended schemes, other than ELSS, have to re-open for ongoing sale / re purchase?
    • A. 

      Within 7 business days of the closure of the NFO.

    • B. 

      Within 7 business days of allotment.

    • C. 

      Within 5 business days of the closure of the NFO.

    • D. 

      Within 5 business days of allotment.

  • 21. 
    What is the period within which statement of accounts are to be sent to investors in case of an NFO?
    • A. 

      Within 7 business days of allotment.

    • B. 

      Within 7 business days of the closure of the NFO.

    • C. 

      Within 5 business days of allotment.

    • D. 

      Within 5 business days of the closure of the NFO.

  • 22. 
    Post- NFO, what is the period within which statement of accounts are to be sent to investors?
    • A. 

      Within 10 business days of allotment

    • B. 

      Within 7 business days of the closure of the NFO.

    • C. 

      Within 7 business days of investment

    • D. 

      Within 10 working days of the investment

  • 23. 
    What is the period within which statement account is to be sent to an investor in relation to an ongoing SIP?
    • A. 

      Within 5 working days of each investment in that SIP

    • B. 

      Within 10 working days of each investment in that SIP

    • C. 

      Once every month within 10 working days of the end of the month

    • D. 

      Once every calendar quarter within 10 working days of the end of the quarter

  • 24. 
    If requested by a unit-holder, within what period from the date of receipt of request, is the AMC bound to issue unit certificates?
    • A. 

      3 months

    • B. 

      15 days

    • C. 

      7 days

    • D. 

      30 days

  • 25. 
    In how many newspapers do Mutual funds have to publish their NAV?
    • A. 

      At least 5

    • B. 

      5

    • C. 

      At least 3

    • D. 

      At least 2