12th Commerce – Securities and Exchange Board of India (SEBI) 40 MCQS QUIZ

12th Commerce – Securities and Exchange Board of India (SEBI)

4 MCQ Tests × 10 Questions = 40 Questions

Submit each test to display the correct answer under every question.

Test 1 – 10 Questions

1. Securities and Exchange Board of India (SEBI) was first established in which year?

A) 1988B) 1992C) 1995D) 1998

Correct Answer: A) 1988

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2. The headquarters of SEBI is located in:

A) CalcuttaB) BombayC) ChennaiD) Delhi

Correct Answer: B) Bombay

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3. In which year was SEBI constituted as the regulator of capital markets in India?

A) 1988B) 1992C) 2014D) 2013

Correct Answer: B) 1992

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4. Registering and controlling the functioning of collective investment schemes such as:

A) Mutual FundsB) ListingC) RematerialisationD) Dematerialization

Correct Answer: A) Mutual Funds

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5. SEBI was empowered by the Finance Ministry to nominate how many members on the governing body of every stock exchange?

A) 5B) 3C) 6D) 7

Correct Answer: A) 5

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6. The process of converting physical shares into electronic form is called:

A) DematerialisationB) DelistingC) MaterialisationD) Debarring

Correct Answer: A) Dematerialisation

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7. Trading in dematerialized shares commenced on the NSE in:

A) January 1996B) June 1998C) December 1996D) December 1998

Correct Answer: A) January 1996

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8. Which was the first company to trade its shares in Demat form?

A) Tata IndustriesB) Reliance IndustriesC) InfosysD) Birla Industries

Correct Answer: A) Tata Industries

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9. Which enables small investors to participate in the investment in the share capital of large companies?

A) Mutual FundsB) SharesC) DebenturesD) Fixed deposits

Correct Answer: A) Mutual Funds

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10. PAN stands for:

A) Permanent Amount NumberB) Primary Account NumberC) Permanent Account NumberD) Permanent Account Nominee

Correct Answer: C) Permanent Account Number

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Test 2 – 10 Questions

1. Which of the following is true?

A) SEBI was first established in 1988B) SEBI was given statutory powers in 1992C) SEBI has its headquarters in MumbaiD) SEBI encourages insider trading

Correct Answer: A) SEBI was first established in 1988

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2. SEBI is an apex body that maintains and regulates the:

A) Capital marketB) Mutual fundsC) Share capitalD) None of these

Correct Answer: A) Capital market

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3. The capital market is meaningless in the absence of:

A) BrokersB) InvestorsC) OwnersD) Employees

Correct Answer: B) Investors

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4. SEBI issues Guidelines and Instructions to business concerning:

A) Credit issuesB) Capital issuesC) Capital issuesD) Share capital

Correct Answer: B) Capital issues

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5. SEBI registers and controls the functioning of collective investment schemes such as:

A) Mutual fundsB) SecuritiesC) BondsD) Debentures

Correct Answer: A) Mutual funds

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6. Stock exchanges deal in:

A) GoodsB) ServicesC) Financial securitiesD) Country's currency

Correct Answer: C) Financial securities

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7. According to the question bank, the number of recognised stock exchanges in India is:

A) 2B) 21C) 22D) 24

Correct Answer: B) 21

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8. SEBI is formed as per the:

A) Securities Contracts (Regulation) ActB) Companies ActC) Securities and Exchange Board of India ActD) Indian Constitution

Correct Answer: C) Securities and Exchange Board of India Act

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9. Where is the headquarters of SEBI?

A) DelhiB) BengaluruC) ChennaiD) Mumbai

Correct Answer: D) Mumbai

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10. A stock market is also called the:

A) Free marketB) Open marketC) Equity marketD) Sports market

Correct Answer: C) Equity market

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Test 3 – 10 Questions

1. SEBI has allowed celebrities to endorse which products?

A) Stocks and sharesB) Mutual fundsC) DividendsD) Insurance

Correct Answer: B) Mutual funds

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2. Which word does not belong to the stock exchange?

A) NAVB) NSEC) IPOD) KPO

Correct Answer: D) KPO

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3. What is the meaning of 'financing' in the financial market?

A) Advising an organization to raise charity fundsB) Investing in the securities marketC) Sourcing fundsD) Converting assets into cash

Correct Answer: C) Sourcing funds

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4. Which of the following is NOT a characteristic of an exchange?

A) It allows securities to be listed on more than one exchangeB) It allows exchange-listed issues to trade off the exchange floor with the aid of brokersC) It provides liquidity to individuals who acquire securities in the primary marketD) Stocks traded on an exchange must meet minimum listing requirements

Correct Answer: B) It allows exchange-listed issues to trade off the exchange floor with the aid of brokers

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5. The exchange generating the largest volume in the United States is the:

A) American Stock ExchangeB) New York Stock ExchangeC) Chicago Stock ExchangeD) Pacific Stock Exchange

Correct Answer: B) New York Stock Exchange

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6. Initially SEBI was a ______ without any statutory power.

A) Statutory bodyB) Non-statutory bodyC) Departmental bodyD) None of these

Correct Answer: B) Non-statutory body

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7. ________ affects the interest of general investors and is essential to check this tendency.

A) Regulation of stock exchangeB) Insider tradingC) Protection to investorsD) Control over brokers

Correct Answer: B) Insider trading

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8. Regulating and controlling the business on ______ markets.

A) StockB) ExchangeC) CapitalD) None of these

Correct Answer: A) Stock

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9. ________ conducts research and publishes information beneficial to all market players.

A) WTOB) HRMC) DematD) SEBI

Correct Answer: D) SEBI

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10. Which is done at the request of the investor?

A) MaterializationB) DematerializationC) DepositoryD) Demat

Correct Answer: A) Materialization

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Test 4 – 10 Questions

1. A ______ account holder can buy or sell any amount of shares.

A) DEMATB) EquityC) CostD) Management

Correct Answer: A) DEMAT

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2. Which is the supervisory body established to regulate the Indian stock market?

A) SEBIB) Mutual fundC) Primary marketD) Secondary market

Correct Answer: A) SEBI

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3. Which account can be opened with no balance of shares?

A) FixedB) CurrentC) DematD) Recurring deposit

Correct Answer: C) Demat

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4. The process of converting physical certificates into electronic form is called:

A) DematerialisationB) DemutualisationC) DepositoryD) Listed securities

Correct Answer: A) Dematerialisation

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5. Demutualisation refers to:

A) Separation of ownership of securitiesB) An institution/organisation which holds securitiesC) Securities on the stock exchange are known as listed securitiesD) Converting physical certificates into electronic form

Correct Answer: A) Separation of ownership of securities

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6. An institution/organisation which holds securities is called a:

A) DematerialisationB) DemutualisationC) DepositoryD) Listed securities

Correct Answer: C) Depository

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7. Securities on the stock exchange are known as:

A) Primary securitiesB) Financial securitiesC) Listed securitiesD) Capital securities

Correct Answer: C) Listed securities

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8. The first issue of shares is floated in the:

A) Public issueB) Financial securities marketC) Stock exchangeD) Primary market

Correct Answer: A) Public issue

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9. The sale of new shares takes place in the:

A) Public issueB) Financial securitiesC) Stock exchangeD) Primary market

Correct Answer: A) Public issue

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10. A stock exchange deals in:

A) Public issueB) Financial securitiesC) 21 recognised exchangesD) Primary market

Correct Answer: B) Financial securities

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