Podcast Beta
Questions and Answers
What is a portfolio in the context of securities?
What is the primary function of asset management companies?
What is the role of investment advisers and distributors?
What is the primary difference between asset management companies and portfolio managers?
Signup and view all the answers
Which ministry regulates the capital markets and its participants?
Signup and view all the answers
What is the primary regulation that defines the setting up of companies?
Signup and view all the answers
What is the role of the Ministry of Corporate Affairs?
Signup and view all the answers
Who initiates discussions on reforms and oversees the implementation of law?
Signup and view all the answers
What is the primary role of the secondary market?
Signup and view all the answers
What is the primary function of a Mutual Fund?
Signup and view all the answers
What is the main aim of the regulators of financial markets?
Signup and view all the answers
What is the purpose of the primary market?
Signup and view all the answers
What is the primary function of the money markets in the Indian financial market?
Signup and view all the answers
What is the term for the process of investing a fixed amount of money at regular intervals, regardless of the market's performance?
Signup and view all the answers
Which of the following market participants provides liquidity and stability in the financial markets?
Signup and view all the answers
What is the main benefit of investing in Mutual Funds?
Signup and view all the answers
What is the role of banks and financial institutions in the financial markets?
Signup and view all the answers
What is the term for the entities that participate in the financial markets, such as investors, brokers, and regulators?
Signup and view all the answers
Who is the licensing authority for insurance companies?
Signup and view all the answers
In which market do securities are issued by the borrowing institutions directly to the lenders or investors?
Signup and view all the answers
What is the primary function of the primary market?
Signup and view all the answers
What is the role of fund managers and financial advisors in the financial markets?
Signup and view all the answers
What is the main objective of investors in the securities market?
Signup and view all the answers
What is the key difference between retail investors and institutional investors?
Signup and view all the answers
What do the commodities markets and foreign exchange markets support?
Signup and view all the answers
Who is the authority appointed under the Companies Act to register companies and ensure compliance with the law?
Signup and view all the answers
Who are the primary participants in the securities market?
Signup and view all the answers
What is the website to visit for registration and examination details for the NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination?
Signup and view all the answers
What determines the type of securities issued by an issuer?
Signup and view all the answers
What is the purpose of regulatory control and supervision in the securities market?
Signup and view all the answers
What characterizes institutional investors?
Signup and view all the answers
Who regulates the Indian banking system and conducts monetary, forex and credit policies?
Signup and view all the answers
Who is responsible for designing the structure of funds and constituents in the National Pension System (NPS)?
Signup and view all the answers
What is the primary function of the Securities and Exchange Board of India (SEBI)?
Signup and view all the answers
What is the role of institutions such as mutual funds, insurance companies, and pension funds in the proper pricing of financial assets?
Signup and view all the answers
What is the primary function of the securities or capital markets in the Indian financial market?
Signup and view all the answers
What is the role of financial intermediaries in the securities market?
Signup and view all the answers
Who regulates the futures and forward trading in commodities in India?
Signup and view all the answers
What is the role of investment advisers and distributors?
Signup and view all the answers
Who oversees the activities of the banking system, insurance, and pension sectors?
Signup and view all the answers
Study Notes
Registration and Examination
- To find out more and register for the NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination, visit www.nism.ac.in.
Indian Financial Markets
- The Indian financial market consists of the money markets and securities or capital markets.
- The money markets deal with short-term lending and borrowing of funds.
- The securities or capital markets enable longer-term transfer of funds using debt and equity instruments.
Structure of Financial Markets in India
- The financial market structure consists of the primary markets where securities are issued by borrowing institutions directly to lenders or investors.
- The secondary markets provide investors with options to exit or reallocate their resources by dealing amongst themselves.
Participants in Financial Markets
- Market participants include banks, financial institutions, brokers, dealers, custodians, depositories, and depository participants.
- Institutional investors, such as mutual funds, insurance companies, and pension funds, provide funds in the markets and provide liquidity and stability.
Regulatory Framework
- Regulators of financial markets include the Ministry of Finance, Ministry of Corporate Affairs, Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDA), and Pension Fund Regulatory and Development Authority (PFRDA).
- The Ministry of Finance regulates the banking system, insurance, and pension sectors.
- The Ministry of Corporate Affairs regulates the functioning of the corporate sector.
- The RBI regulates the money market segment of the securities market and manages the government's borrowing program.
- The SEBI is the chief regulator of securities markets in India.
Mutual Funds
- A mutual fund is a type of investment vehicle that pools money from various investors to invest in a diversified portfolio of securities.
- Mutual funds are regulated by SEBI.
- Mutual fund products include equity, debt, and hybrid funds.
Investment Products
- Investment products include mutual funds, insurance products, and pension funds.
- Investment advisers and distributors work with investors to help them make a choice of securities based on their needs, time horizon, return expectation, and ability to bear risk.
Regulatory Control and Supervision
- The entire process of issuance, subscription, and transaction in securities is subject to regulatory control and supervision.
- Regulators ensure that the interests of investors are protected.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz covers the basics of the Indian financial market, including the money markets and securities or capital markets, as well as the registration process for the NISM-Series-X-A Certification Examination.