12 Questions
According to the Securities Contracts (Regulation) Act, 1956, which of the following is NOT included in the definition of securities?
Unit-linked insurance policy
In the context of the Securities Contracts (Regulation) Act, 1956, what type of instruments are explicitly mentioned as derivatives?
All of the above
Which type of entity can issue units or instruments that are considered securities under the Securities Contracts (Regulation) Act, 1956?
Pooled investment vehicles or collective investment schemes
Under the Securities Contracts (Regulation) Act, 1956, what kind of contracts can be classified as derivatives?
Contracts based on prices of underlying securities, among others
As per the Securities Contracts (Regulation) Act, 1956, what is the distinctive feature of a security receipt?
It acknowledges beneficial interest in a debt or receivable
What do securities represent?
Terms of exchange of money between two parties
Which of the following entities can issue a certificate or instrument acknowledging beneficial interest in a debt or receivable?
A pooled investment vehicle
Why do companies, financial institutions, or the government issue securities?
To raise money at a reasonable cost
What is the main purpose of listing securities on a stock exchange?
To ensure the security is liquid and provides information to investors
How are equity and debt securities broadly classified?
Based on risk and return characteristics
What do rights represented by securities involve?
Ownership, participation in management, or claims on assets
What do risk and return refer to in the context of securities?
Risk refers to the possibility of loss, while return refers to the benefits investors will receive
Test your knowledge on the definition of 'securities' as per Section 2 (h) of the Securities Contracts (Regulation) Act, 1956. Explore the various instruments and entities included under the definition of securities according to the Act.
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