Portfolio Management Services (PMS) Distributors Free Demo Test 2

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Portfolio Management Services (PMS) DistributorsFree Demo Test 2

1 / 10

1. The SEBI (Mutual Funds) Regulations came in the year _______ .

a) 1994

b) 1996

c) 1964

d) 2000

2 / 10

2. ________ portfolio manager manages the funds in accordance with the directions of the client.

a) Discretionary

b) Non-discretionary

c) Advisory

d) All of the above

3 / 10

While making an application for a portfolio manager, financial information has to be submitted for which of the three years?

a) Current and the next two years

b) Preceding two years and the current year

c) Preceding 3 years

d) Succeeding three years

4 / 10

A reputed portfolio manager has deployed funds of a client with a corporate. The corporate has promised that convertible bonds will be issued against these funds. Is this transaction in order?

a) This is NOT in order as no physical delivery of the security has been made and this is not permitted

b) This is NOT in order as this amounts to lending of the client's funds and this is not permitted

c) This is in order as this style of investment is routine and approved

d) This is in order as eventually bonds will be issued to the PMS

5 / 10

The time period restriction for a contra trade by a Designated Person of a company is ______ .

a) One month

b) Three months

c) Six Months

d) Nine months

6 / 10

_______ is the threshold limit for the suspicious transactions for which record needs to be kept as per the Money Laundering Act.

a) Rs. 5 Lakhs

b) Rs. 10 Lakhs

c) Rs. 25 Lakhs

d) Rs. 1 Crore

7 / 10

Define the relationship between the prices of a bond and its yield.

a) Its always positive

b) Its always inverse

c) Its positive when interest rates are falling

d) Its positive when interest rates are rising

8 / 10

8. A PMS has changed its main office address. This should be informed to ______ .

A. Financial Intelligence Unit – India (FIU)

B. SEBI

C. Clients

a) Only A and B

b) Only B and C

c) Only A and C

d) All A, B and C

9 / 10

A reputed PMS firm has 5 group companies. Identify which among the following is the best practice about disclosing these to the client.

a) The PMS firm has to disclose about the group companies only if there is a conflict of interest

b) The PMS firm need not disclose about the group companies

c) The PMS firm has to disclose about the group companies

d) The PMS firm need not disclose about the group companies as they are not above 10 in number

10 / 10

10.

Which of the following institutions can issue bonds in India ?

a) Financial Institutions

b) Banks

c) Corporates

d) All of the above

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Portfolio Management Services (PMS) Distributors Free Demo Test 2

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