CP- A3 and Zero-Coupon Bonds

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Questions and Answers

What is the primary purpose of Treasury Bills issued by the Government of India?

  • To meet the government's short-term cash requirements (correct)
  • To provide investment opportunities for retail investors
  • To raise funds for public sector undertakings
  • To meet the government's long-term financing needs

Which of the following conditions must be met for the listing of debt securities with a maturity period of more than 365 days, issued by companies on a private placement basis?

  • The debt securities must be issued by companies that are listed on a recognized stock exchange
  • The debt securities must be issued and traded in physical form
  • The debt securities must have a credit rating from a SEBI-registered agency (correct)
  • The debt securities must be issued by companies that have previously issued equity or debt securities through a public offer

Which of the following is a requirement for the listing of debt securities issued by unlisted companies or other entities on a private placement basis?

  • The debt securities must comply with the relevant conditions prescribed by SEBI for getting them listed on the stock exchanges (correct)
  • The debt securities must have a maturity period of less than 365 days
  • The debt securities must be issued by companies that have previously issued equity or debt securities through a public offer
  • The debt securities must be issued and traded in physical form

What is the primary purpose of the Securities Transaction Tax (STT) levied on stock exchange transactions?

<p>To provide a stable source of revenue for the government (A)</p> Signup and view all the answers

Which of the following is a correct statement about the listing requirements for debt securities issued by companies, including listed companies, on a private placement basis?

<p>The debt securities must comply with the conditions prescribed by SEBI for getting them listed on the stock exchanges (C)</p> Signup and view all the answers

Which of the following statements is true about CP-A3 Coupon Bonds?

<p>The issuer pays interest at a predetermined rate at agreed intervals, typically twice a year. (D)</p> Signup and view all the answers

Which of the following statements accurately describes Zero-Coupon Bonds?

<p>The bonds are issued at a discount and repaid at a face value, with no periodic interest payments. (B)</p> Signup and view all the answers

What is the key feature of a Convertible Bond?

<p>It can be converted into equity at a fixed conversion price. (B)</p> Signup and view all the answers

Which of the following statements accurately describes Commercial Papers?

<p>They are short-term promises to repay fixed amounts, issued by companies with a high credit standing. (C)</p> Signup and view all the answers

What is the minimum time period for which Commercial Papers can be issued?

<p>7 days (B)</p> Signup and view all the answers

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