Securities Intermediaries Compliance (Non Fund) Free Demo Test 3

The act of failure to redress the grievances of any investor by a stockbroker is penalized under Section 23C of the Securities Contracts (Regulation) Act, 1956 (SCRA). This provision emphasizes the importance of addressing investor grievances and imposes penalties for non-compliance by stockbrokers.

True. The holding company, associate company, or subsidiary company of the concerned company is considered a connected person. In the context of securities regulations, connected persons often have relationships or associations that may influence the decision-making of the concerned company, and disclosure requirements may apply to transactions involving such connected persons.

Interest rate swaps are agreements between two or more parties to exchange a series of cash flows in the same currency over an agreed period of time. These agreements typically involve the exchange of fixed and floating interest rates to manage or hedge against interest rate risk.

In the case of a book-built issue, the issuer may mention a price or a price band in the Red Herring Prospectus. The Red Herring Prospectus is a preliminary prospectus used in the initial public offering (IPO) process, and it provides key information about the issuer and the proposed offering, excluding the final issue price.

Rule 15(1) of the Securities Contracts (Regulation) Rules requires every member of a recognized stock exchange to maintain and preserve the books of account and documents for a period of 5 years. This regulation is in place to ensure the availability of financial records for inspection and audit purposes.

The KRA (KYC Registration Agency) is required to send the action taken report to SEBI within 3 months of placing the audit report before the Board of Directors. This reporting timeframe ensures a timely response to any findings or recommendations identified during the audit process.

The portfolio manager shall execute off-market transfers in the client’s account for both settlement of the client’s own trades and providing margin or collateral for the client’s own positions. This allows the portfolio manager to manage and facilitate various aspects of the client’s investment activities.

The Depositories Act, 1996, provides for the establishment of depositories in securities with the objective of ensuring free transferability of securities with speed, accuracy, and security. This act laid the foundation for the establishment of depositories in India, such as NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited).

Qualified Registrars and Transfer Agents (QRTAs) servicing mutual fund investors must have an investor service center in at least 100 cities. This requirement ensures that investors across a wide geographical area have access to service centers for assistance and support related to mutual fund investments.