SEBI - General awareness questions on current affairs

1)   Who has been appointed the new SEBI chief w.e.f March 1, 2017?

a. UK Sinha
b. Ajay Tyagi
c. Brijesh Mishra
d. None of the above
Answer  Explanation 

ANSWER: Ajay Tyagi

Explanation:
The government has appointed senior finance ministry official Ajay Tyagi as the chairman of the India markets watchdog, Securities and Exchange Board of India (Sebi) for a five-year term.

Tyagi, who is currently an additional secretary at finance ministry’s economic affairs department, will succeed Upendra Kumar Sinha as the chairman of Sebi. Sinha’s current term ends on 1 March.

Upendra Kumar Sinha's extended tenure ends on March 1.

Tyagi, a 1984 batch IAS officer of Himachal Pradesh cadre, is at present Additional Secretary (Investment) in the Department of Economic Affairs and handles capital market, among others.

Tyagi has been appointed as chairman of the markets regulator, an official order said.

Sinha's three-year term began in February 2011, following which he got two extensions, making him one of the longest-serving SEBI chiefs.

The Appointments Committee of the Cabinet-headed by Prime Minister Narendra Modi has approved Tyagi's appointment for a period not exceeding five years or till the age of 65 years, it said.

58-year-old Tyagi hails from Uttar Pradesh.

As per the eligibility criteria, a person can hold the position of Sebi chairman till the age of 65 years or for a term decided by the government.

Sinha, a 1976 batch IAS officer of Bihar cadre, had assumed office as the Sebi chairman on February 18, 2011, when the previous UPA government was in power.

He was later given a two-year extension. Days before the end of his tenure in February last year, he was given another extension till March 1, 2017.

Tyagi for a short while was also on the board of Reserve Bank of India (RBI).

The process for selecting the next chief of the Sebi started in September 2015, pursuant to which several applications were received for the position.

GoI had decided to give a one-year extension to Sinha to ensure stability due to volatile market conditions.

Sebi chairman receives consolidated pay package of Rs 4.5 lakh per month.


2)   Which financial body has asked intermediaries and companies to make regulatory payments in digital mode?

a. SEBI
b. RBI
c. NSE
d. BSE
Answer  Explanation 

ANSWER: SEBI

Explanation:
Joining focuses with the government on the post-demonetization cashless drive, market regulator SEBI plans to give option to market intermediaries and companies to make digital payments.

Move will help speed and ease of transactions while lowering failures due to payment gateway issues.

SEBI is said to follow many organisations on the digital drive, following demonetisation of high value currency by the RBI in Nov.

Intermediaries such as brokers, Foreign Portfolio Investors, Stock Exchanges, Custodians make payments to SEBI through online banking.

Payments made include penalties, disgorgement amounts, settlement amounts, legal charges and recovery amounts. An option for e-payment of the same through RTGS has been approved.

To enable digital payment, SEBI will pass an amendment in different regulations setting the option for payment to the regulatory authorities through the digital mode.


3)   SEBI has relaxed investment rules for which funds?

a. Angel Funds
b. Mutual Funds
c. Debt Funds
d. None of the above
Answer  Explanation 

ANSWER: Angel Funds

Explanation:
For boosting startup funding, SEBI has relaxed rules for investment by angel funds, permitting them to invest in up to 5-year-old entities.

The lock-in requirement has been reduced from three to one year for angel funds and their minimum investment threshold has been slashed to INR 25 lakh.


Upper limit for number of angel investors in a scheme will be increased from 49 to 200 in a notification dated Jan 4, 2016.

Regulatory SEBI has made an amendment to SEBI (Alternative Investment Funds) Regulations 2012 following which the definition of startup for angel fund investments are similar to DIPP. As given in their startup policy.

Angel funds can invest in startups incorporated within 5 years, which was earlier 3 years.

To diversify risks, SEBI has also permitted angel funds to make overseas investments up to 25 percent of their investible corpus in line with other AIFs/ Alternative Investment Funds.

Angel Fund, a subcategory of AIF encourages entrepreneurship in the country by financing startups at a stage when firms find it difficult to obtain capital from traditional sources of finance such as banks and financial institutions.

Currently, 266 AIFs are registered with SEBI of which 84 are registered under Category 1. Angel Investors fund startups in their seed stage.

Angel investors generally make early-stage investments and highly risky bets in the start-up universe, but are essential to these companies’ growth trajectory.

The amendments are part of SEBI’s larger efforts to encourage young entrepreneurship in the country, and provide founders with access to private and eventually public funds.


4)   SEBI has proposed a set of changes to relax rules and rename the institutional trading platform as what?

a. High Tech Start Up & Other New Business Platform
b. High Tech Incubation & Other New Business Platform
c. High Tech Innovation % Other New Business Platform
d. None of the above
Answer  Explanation 

ANSWER: High Tech Start Up & Other New Business Platform

Explanation:
The Securities and Exchange Board of India has proposed considerable changes for startup listing platform to enhance its appeal for new age firms going public in local markets.

  • Regulator indicated that based on feedback received from market participants, the decision has been taken to relax rules and rename the institutional trading platform as High Tech Start Up & Other New Business Platform.
  • The proposal has been to eliminate the rule which says no single shareholder shall own more than 25 percent after listing, which many promoters were not comfortable with and has increased the allocation of shares more for HNIs and corporates.
  • Earlier only 25 percent was reserved for HNIs and corporates.
  • The hike in the limit on share allotment to individual institutional investors has gone up from 10 to 25 percent.
  • Regulator also proposed to permit market making compulsory for at least three years for IPO of less than INR 100 crore.
  • There is no provision mandates market making currently. Under the current rules, startups can also list on the separate institutional trading platforms of stock exchanges.
  • Platform has not attracted a single start up for listing so far.
  • SEBI has now eased the rules.
  • Regulator has also proposed lock in for pre-issue shares held by venture capitalists and employees under the ESOP scheme for six months following the IPO
  • Proposal has also been made to lower minimum trading lot from 10 to 5 lakh.


5)   SEBI has just set up plans for a special court in the national capital. Where else is the special court located in India?

a. Mumbai
b. Hyderabad
c. Cochin
d. Agartala
Answer  Explanation 

ANSWER: Mumbai

Explanation:
To fast-track proceedings and ensure timely disposal of cases filed by capital market regulator Sebi, a special court is in the process of being set up in the national capital.

  • This would be the fourth special court to be established in the country to hear cases filed by the Securities and Exchange Board of India (Sebi).
  • Following amendment in the Sebi Act, back in 2014, three special courts have already been constituted in Mumbai, Kolkata and Chennai


6)   Entities under probe for serious violation in which market can seek settlement of the case if they make good on losses suffered by investors to SEBI’s satisfaction?

a. Share Market
b. Stock market
c. Capital market
d. Money market
Answer  Explanation 

ANSWER: Capital market

Explanation:
Entities under probe for “serious violations” in capital markets can seek settlement of case only if they make good on their losses suffered by investors as per the consent of SEBI.

  • Regulations provide settlement of cases where proceedings have not been initiated
  • Regulations provide for settlement of cases where proceedings are yet to be initiated


7)   Cabinet has approved a pact between SEBI and which country on May 12th 2016?

a. Abu Dhabi
b. Bahrain
c. Saudi Arabia
d. Iran
Answer  Explanation 

ANSWER: Abu Dhabi

Explanation:
The Union Cabinet approved the signing of a pact between SEBI and Financial Services Regulatory Authority, Abu Dhabi for mutual cooperation and technical assistance

  • The SEBI pact will promote development of economic links and cooperation between he tow signatories
  • Securities and Exchange Board of India (SEBI) has signed bilateral pacts with a number of countries.
  • Besides, it is a signatory to global market regulators' grouping IOSCO's MoU (Multilateral Memorandum of Understanding).


8)   Who has been given extension as SEBI Chairman till March 2017?

a. Arundhati Bhattacharya
b. Raghuram Rajan
c. UK Sinha
d. None of the above
Answer  Explanation 

ANSWER: UK Sinha

Explanation:
UK Sinha will remain the SEBI chairman till March 2017 with the government on 15th February extending his term by a single year. Sinha’s current term was to end on February 17th. His extension was approved by the Cabinet Appointments Committee headed by Indian PM Narendra Modi. SEBI has implemented numerous capital market reforms during Sinha’s turn as SEBI Chairman.


9)   SEBI has recently kicked in a new form for ASBA. What does ASBA stand for?

a. Application Supported by Brokerage Amount
b. Application Sustained by Blocked Amount
c. Application Supported by Blocked Amount
d. None of the above
Answer  Explanation 

ANSWER: Application Supported by Blocked Amount

Explanation:
The checklist regime has been included for initial public offerings, whereby capital market regulator SEBI has put in place for ASBA or Application Supported by Blocked Amount facility. ASBA facility has become compulsory for all categories of investors applying for public issue for payments from January 1 2016. Facility allows the bid amount to remain in applicants account till the time of the final allocation of the shares.


10)   Investment through P-Notes into the Indian capital market rose to ______ lakh crore at the close of September 2015, according to SEBI.

a. 2.52
b. 2.53
c. 2.54
d. 2.55
Answer  Explanation 

ANSWER: 2.54

Explanation:
Investment through Participatory Notes within India’s capital market rose by INR 2.54 lakh crore or USD 39 billion towards the close of September from the earlier month. Before this, investment through this route had been declining in 3 months from June to August. This marks the highest investment of P-Notes since February 2008. As per SEBI data, total value of P-Notes investment in Indian markets (equity, debt and derivatives) increased to INR 2,53,875 crore at September-end, from INR 2,53,310 crore in the previous month.


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