Securities Contracts Regulation Act Quiz

A security issued by the Central or State Government for raising public loans, conforming to the Public Debt Act, 1944.

A member of a stock exchange officially recognized by the government.

A contract to buy or sell securities at a future date, including options like 'teji' and 'mandi'.

A stock exchange formally acknowledged by the Central Government.

The rules governing the constitution and management of a stock exchange, including its memorandum and articles of association if it's an incorporated body.

A plan to transform a recognized stock exchange by incorporating it or demutualizing it.

A tribunal established under the Securities and Exchange Board of India Act, 1992, to handle appeals related to securities.

An individual or company registered as a stock broker or sub-broker under the SEBI Act, 1992, who fails to comply with the listing conditions or delisting conditions or grounds or commits a breach thereof, is liable to a penalty not exceeding twenty-five crore rupees.

Any person, registered under the SEBI Act, 1992 as a stock broker or sub-broker, who fails to segregate securities or moneys of the client or uses these assets for personal or other client use, will be subject to a penalty not exceeding one crore rupees.

If a stock broker or sub-broker, or a company listed on a recognized stock exchange fails to address investor grievances within a specified time frame set by SEBI or the stock exchange, they will be penalized. The penalty is one lakh rupees per day of delay, up to a maximum of one crore rupees.

If a company or individual managing a collective investment scheme or mutual fund fails to comply with listing conditions or delisting conditions or grounds, they are liable to a penalty not exceeding twenty-five crore rupees.

An individual or company registered as a stock broker or sub-broker under the SEBI Act, 1992, who fails to segregate securities or moneys of the client or clients or uses the securities or moneys of a client or clients for self or for any other client, he shall be liable to a penalty not exceeding one crore rupees.

The central authority responsible for overseeing stock exchanges in India.

Rules that govern the internal operations and practices of a stock exchange.

Formal application submitted to the Central Government requesting recognition as a stock exchange.

The governing body of a stock exchange, responsible for its management and operations.

The criteria for membership in a stock exchange (e.g., qualifications, eligibility).

The process by which individuals and firms are assessed and accepted as members of a stock exchange.

Procedures for partnerships to become members of a stock exchange.

The formal recognition granted by the Central Government to a stock exchange, allowing it to operate legally.

Conditions imposed by the Central Government for stock exchange recognition, ensuring fair trading practices and investment protection.

The Securities and Exchange Board of India (SEBI) can reject a scheme if it believes that it would not benefit the trading community or the public.

SEBI must give a chance to all affected parties and the stock exchange to present their arguments before rejecting a scheme.

SEBI can approve a scheme while limiting the voting rights of shareholders who are also brokers.

SEBI can restrict the right of shareholders or a broker to appoint representatives on a stock exchange's governing board.

SEBI can cap the number of broker representatives on a stock exchange's governing board to a maximum of one-fourth of the total board size.

SEBI's order to restrict or limit voting rights, board appointments, or broker representation becomes legally effective upon publication in the Official Gazette.

The legal force of SEBI's order overrides any contradictory provisions in the Companies Act of 1956 or any other law.

SEBI has the authority to approve or reject schemes related to stock exchanges.

SEBI's decisions are made to ensure the fairness and transparency of stock exchange operations.

SEBI's power to regulate schemes helps to protect the interests of investors and the overall stability of the financial market.

The Securities and Exchange Board of India (SEBI) is the regulatory body for the Indian securities market. It plays a crucial role in ensuring fair, transparent, and efficient markets by granting licenses to individuals or entities dealing in securities.

The Securities and Exchange Board of India (SEBI) is empowered to grant licenses to individuals or entities who wish to deal in securities in India. This licensing process ensures that only qualified and trustworthy players operate within the market.

SEBI licenses are required for individuals or entities wishing to deal in securities in India. Without a license, engaging in securities transactions is prohibited, except for members of recognized stock exchanges.

Spot delivery contracts refer to financial agreements where the underlying asset is delivered immediately upon the completion of the transaction. These contracts bypass any future delivery commitments, unlike contracts involving derivatives or futures.

The Central Government has the authority to regulate spot delivery contracts if deemed necessary in the interest of trade or public welfare. This regulation can extend to specific types of securities or encompass all spot delivery contracts within a particular state or region.

While spot delivery contracts are typically excluded from regulations governing futures and derivatives, the Central Government holds the power to extend regulations to spot contracts if it deems it necessary for the protection of trade or public welfare. This decision can be applied to specific regions or types of securities.

Spot delivery contracts are excluded from the regulations governing sections 13, 14, 15, and 17 of the Securities and Exchange Board of India Act. These sections primarily address regulations regarding futures and derivatives.

The Central Government has the power to extend regulations to spot delivery contracts, including provisions from section 17, if it determines it is in the best interest of the trading community or public welfare. This authority can be applied to specific areas or specific securities within spot delivery contracts.

The Central Government can choose to regulate either all spot delivery contracts or only specific types of contracts relating to particular securities within a designated state or area. This allows for targeted regulatory measures based on the perceived needs of the market.

The Central Government has the power to regulate spot delivery contracts if deemed necessary for the benefit of trade or public interest within a specific state or area. This can occur regardless of whether section 13 of the Securities and Exchange Board of India Act has been declared applicable to that state or area.