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Governance & Society Cluster242 Verified Questions
Stock Exchanges (BSE, NSE), SEBI & Capital Markets in India GK Questions & Answers
The Indian capital market facilitates the mobilization and allocation of long-term financial resources between surplus savers and deficit entities. Regulation of this ecosystem is vested in the Securities and Exchange Board of India (SEBI), established as a non-statutory body in 1988 and conferred statutory authority through the SEBI Act, 1992. The capital market comprises the primary market, where issuers raise fresh capital through Initial Public Offerings (IPOs) and rights issues, and the secondary market, where previously issued securities are traded. The Bombay Stock Exchange (BSE), founded in 1875 as the Native Share and Stock Brokers' Association, is Asia's oldest exchange; its benchmark index, S&P BSE Sensex, tracks 30 prominent equities. The National Stock Exchange of India (NSE), established in 1992 following the Pherwani Committee recommendations, operates the benchmark Nifty 50 index. Trading settlement has transitioned to the T+1 cycle, reducing counterparty default risks. The Depositories Act, 1996 enabled the dematerialisation of physical certificates into electronic format, operated through two licensed depositories: National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
High-yield conceptual summaries for competitive exams and rapid revision.
SEBI acquired statutory status on January 30, 1992, through an ordinance later enacted as the SEBI Act, 1992.
BSE Sensex is a free-float market-weighted index of 30 well-established companies, originating from a base year of 1978-79.
NSE was incorporated in 1992 upon recommendations of the M. J. Pherwani Committee and launched equity trading in 1994.
The Depositories Act, 1996 facilitated demat conversion, establishing NSDL (promoted by NSE/IDBI) and CDSL (promoted by BSE).
Indian equity markets completed the transition to a full T+1 settlement cycle in January 2023, enhancing capital turnover and reducing market risk.
Showing 25 Curated Questions242 Total in Bank
1ID: GK-BIZ-00008
hardCompanies Act, SEBI & Corporate Governance
In which year was the Securities and Exchange Board of India (SEBI) granted statutory regulatory powers through an Act of Parliament, transitioning from its earlier non-statutory executive status?
Verified Explanation
SEBI was initially constituted as a non-statutory body by executive resolution on April 12, 1988, and was subsequently conferred autonomous statutory status on January 30, 1992 through the SEBI Act, 1992.
2ID: GK-BIZ-00016
easyCompanies Act, SEBI Regulations & Stock Markets
What does the abbreviation 'LODR' stand for in the core corporate governance regulations issued by SEBI in 2015?
Verified Explanation
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, known as LODR Regulations, consolidate and streamline the listing requirements and ongoing corporate governance disclosures for listed entities across different segments of Indian capital markets.
3ID: GK-BIZ-00018
mediumCompanies Act, SEBI Regulations & Stock Markets
Which committee constituted by SEBI in 1999 formulated India's first formal Corporate Governance Code, which was incorporated into Clause 49 of the Listing Agreement?
Verified Explanation
In 1999, SEBI set up the Kumar Mangalam Birla Committee on Corporate Governance. Its recommendations led to the introduction of 'Clause 49' in the Listing Agreement, establishing mandatory standards for board composition, independent directors, and audit committees.
4ID: GK-BIZ-00021
mediumCompanies Act, SEBI Regulations & Stock Markets
Under SEBI regulations and Rule 19A of the Securities Contracts (Regulation) Rules, what is the mandatory Minimum Public Shareholding (MPS) that listed companies must maintain?
Verified Explanation
Rule 19A of the Securities Contracts (Regulation) Rules, 1957, read with SEBI LODR, mandates that every listed company (other than public sector enterprises with specific temporary exemptions) must maintain a Minimum Public Shareholding (MPS) of at least 25%.
5ID: GK-BIZ-00024
mediumCompanies Act, SEBI Regulations & Stock Markets
What is the name of SEBI's centralized web-based online grievance redressal portal where investors can lodge and track complaints against listed entities and intermediaries?
Verified Explanation
SCORES (SEBI Complaints Redress System) is a centralized web-based grievance redressal platform launched by SEBI in June 2011 (and updated as SCORES 2.0 in 2024) enabling investors to lodge, track, and seek automated time-bound escalation of complaints against listed companies and market intermediaries.
6ID: GK-BIZ-00025
hardCompanies Act, SEBI Regulations & Stock Markets
Which mandatory ESG reporting framework was introduced by SEBI for the top 1,000 listed entities by market capitalization starting from FY 2022-23?
Verified Explanation
In May 2021, SEBI introduced the Business Responsibility and Sustainability Report (BRSR) framework, replacing the older BRR. Filing BRSR became mandatory for the top 1,000 listed entities by market capitalization from FY 2022-23, covering quantitative Environmental, Social, and Governance (ESG) metrics.
7ID: GK-BIZ-00027
hardCompanies Act, SEBI Regulations & Stock Markets
Under the SEBI (Prohibition of Insider Trading) Regulations, 2015, what does 'UPSI' stand for in relation to price-sensitive corporate data?
Verified Explanation
Under Regulation 2(1)(n) of the SEBI (PIT) Regulations, 2015, 'Unpublished Price Sensitive Information' (UPSI) means any information relating to a company or its securities that is not generally available and which upon becoming available is likely to materially affect the price of securities.
8ID: GK-BIZ-00071
easyCompanies Act, SEBI Regulations & Stock Markets
Who was appointed in March 2022 as the first woman Chairperson of the Securities and Exchange Board of India (SEBI)?
Verified Explanation
Madhabi Puri Buch was appointed as the Chairperson of SEBI in March 2022, becoming both the first woman and the first person from the private sector to head India's apex capital markets regulatory body.
9ID: GK-BIZ-00075
mediumCompanies Act, SEBI Regulations & Stock Markets
What mandatory investor protection mechanism under SEBI ICDR Regulations ensures that an IPO applicant's application money remains blocked in their own bank account until share allotment?
Verified Explanation
Application Supported by Blocked Amount (ASBA) is an application mechanism developed by SEBI where the applicant's bidding amount is merely blocked in their own bank account and is only debited to the extent of actual share allotment, eliminating refund delays and broker misappropriation risks.
10ID: GK-BIZ-00077
mediumCompanies Act, SEBI Regulations & Stock Markets
Constituted under Section 15K of the SEBI Act, 1992, the Securities Appellate Tribunal (SAT) is empowered to hear appeals against decisions of which group of regulators?
Verified Explanation
The Securities Appellate Tribunal (SAT) is a statutory tribunal established under Section 15K of the SEBI Act, 1992. Following subsequent statutory amendments, SAT hears appeals against orders passed by SEBI, the Insurance Regulatory and Development Authority of India (IRDAI), and the Pension Fund Regulatory and Development Authority (PFRDA).
11ID: GK-BIZ-00079
hardCompanies Act, SEBI Regulations & Stock Markets
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what shareholding or voting rights acquisition threshold triggers a mandatory open offer to public shareholders?
Verified Explanation
Under Regulation 3(1) of the SEBI (SAST) Regulations, 2011 (Takeover Code), when an acquirer (together with persons acting in concert) agrees to acquire shares or voting rights that entitle them to exercise 25% or more of the voting rights in a listed target company, it triggers a mandatory obligation to make an open offer to acquire at least an additional 26% from public shareholders.
12ID: GK-BIZ-00080
hardCompanies Act, SEBI Regulations & Stock Markets
In March 2024, SEBI introduced the beta version of same-day trade settlement (T+0 settlement cycle) on an optional basis for how many select liquid stocks?
Verified Explanation
On March 28, 2024, SEBI launched the beta version of the optional T+0 (same-day) trade settlement cycle for 25 liquid stocks with a limited set of brokers. Under T+0, funds and securities are settled on the exact same day the transaction takes place, paving the way for instantaneous real-time settlement.
13ID: GK-BIZ-00083
mediumCompanies Act, SEBI Regulations & Stock Markets
Under standard SEBI ICDR Regulations for a book-built initial public offering (IPO) where the company meets profitability criteria, what minimum proportion of the net offer must be allocated to Retail Individual Investors (RIIs)?
Verified Explanation
Under Regulation 6(1) of SEBI ICDR Regulations, in a standard book-built issue by a profitable issuer, not less than 35% of the net offer is allocated to Retail Individual Investors (RIIs), not less than 15% to Non-Institutional Investors (NIIs/HNIs), and not more than 50% to Qualified Institutional Buyers (QIBs).
14ID: GK-BIZ-00084
hardCompanies Act, SEBI Regulations & Stock Markets
In which year did SEBI formally notify the dedicated regulatory framework for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in India?
Verified Explanation
SEBI notified the SEBI (Real Estate Investment Trusts) Regulations, 2014 and SEBI (Infrastructure Investment Trusts) Regulations, 2014 in September 2014, establishing the legal framework allowing retail and institutional investors to invest in income-generating commercial real estate and infrastructure assets.
15ID: GK-BIZ-00085
mediumCompanies Act, SEBI Regulations & Stock Markets
Which landmark corporate governance committee constituted by SEBI in 2003 recommended the mandatory establishment of Audit Committees in all listed companies and an institutional Whistle-Blower policy?
Verified Explanation
The SEBI Committee on Corporate Governance chaired by N. R. Narayana Murthy submitted its report in 2003. Its major recommendations included mandatory establishment of independent audit committees, stricter definitions of independent directors, mandatory whistle-blower protection mechanisms, and evaluation of non-executive directors.
16ID: GK-BIZ-00135
easyCompanies Act, SEBI Regulations & Stock Markets
Under the SEBI (Alternative Investment Funds) Regulations, 2012, which category includes Venture Capital Funds, SME Funds, Social Venture Funds, and Infrastructure Funds that receive economic incentives from the government?
Verified Explanation
Category I AIFs under SEBI regulations comprise funds that invest in start-ups, early stage ventures, social ventures, SMEs, or infrastructure sectors which the government or regulators consider to have positive spillover effects on the economy and provide specific concessions.
17ID: GK-BIZ-00140
mediumCompanies Act, SEBI Regulations & Stock Markets
Under Regulation 30 of the SEBI (LODR) Regulations (as amended in 2023), within what time frame must a listed entity disclose material events or information emanating from a meeting of the Board of Directors?
Verified Explanation
Under SEBI LODR Regulation 30(6) as amended in June 2023, material events or information emanating from a board meeting (such as dividend declarations, financial results, or fund-raising decisions) must be disclosed to stock exchanges within 30 minutes of the closure of the meeting.
18ID: GK-BIZ-00142
mediumCompanies Act, SEBI Regulations & Stock Markets
Under the SEBI (Delisting of Equity Shares) Regulations, 2021, an acquirer's voluntary delisting offer is deemed successful only if the post-offer shareholding of the promoter group reaches at least what threshold of the company's total issued share capital?
Verified Explanation
Under Regulation 21 of the SEBI (Delisting of Equity Shares) Regulations, 2021, a voluntary delisting offer through the Reverse Book Building (RBB) mechanism is successful only if the post-offer promoter shareholding reaches at least 90% of the total issued equity share capital (excluding inactive/frozen shares).
19ID: GK-BIZ-00143
mediumCompanies Act, SEBI Regulations & Stock Markets
What is the name of the unified online dispute resolution platform launched by SEBI in August 2023 to streamline conciliation and arbitration for securities market disputes?
Verified Explanation
In August 2023, SEBI launched the SMART ODR (Securities Market Approach to Resolution Through ODR) portal, which harnesses online conciliation and arbitration to resolve disputes between investors and listed companies or registered intermediaries in an automated, time-bound manner.
20ID: GK-BIZ-00144
mediumCompanies Act, SEBI Regulations & Stock Markets
In which year did the Securities and Exchange Board of India (SEBI) notify the formal regulatory framework for the issuance and listing of Debt Securities by Municipalities (Municipal Bonds)?
Verified Explanation
SEBI notified the Issue and Listing of Debt Securities by Municipalities Regulations in 2015 to enable urban local bodies (such as Pune, Ahmedabad, and Lucknow Municipal Corporations) to raise capital from capital markets for urban infrastructure projects.
21ID: GK-BIZ-00148
hardCompanies Act, SEBI Regulations & Stock Markets
Under Clause 4 of Schedule B to the SEBI (Prohibition of Insider Trading) Regulations, 2015, when is the 'Trading Window' mandatorily closed for designated persons of listed companies for quarterly financial results?
Verified Explanation
Under SEBI PIT Regulations, the trading window closure is mandatory from the end of each financial quarter (e.g. March 31, June 30, September 30, December 31) until 48 hours after the declaration of the financial results to prevent insider trading based on Unpublished Price Sensitive Information (UPSI).
22ID: GK-BIZ-00198
mediumCompanies Act, SEBI Regulations & Stock Markets
Under SEBI (ICDR) Regulations, what lock-in period applies to equity shares allotted to Anchor Investors in an Initial Public Offering (IPO) in India?
Verified Explanation
Under the revised SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (effective April 2022), anchor investor allocations in IPOs have a split lock-in period: 50% of the shares are locked in for 30 days from the date of allotment, while the remaining 50% are locked in for 90 days. This regulatory mechanism fosters corporate transparency, investor protection, and robust governance standards in India.
23ID: GK-BIZ-00203
mediumCompanies Act, SEBI Regulations & Stock Markets
Under the SEBI (ICDR) Regulations, which of the following is explicitly classified as a 'Qualified Institutional Buyer' (QIB)?
Verified Explanation
Under Regulation 2(1)(ss) of the SEBI (ICDR) Regulations, Qualified Institutional Buyers (QIBs) include institutional investors such as mutual funds, alternative investment funds, foreign portfolio investors, public financial institutions, scheduled commercial banks, insurance companies, and pension funds. This regulatory mechanism fosters corporate transparency, investor protection, and robust governance standards in India.
24ID: GK-BIZ-00206
hardCompanies Act, SEBI Regulations & Stock Markets
Under Regulation 3(1) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what equity voting share threshold triggers a mandatory open offer by an acquirer?
Verified Explanation
Under Regulation 3(1) of the SEBI SAST Regulations, 2011 (Takeover Code), no acquirer can acquire shares or voting rights which (along with persons acting in concert) entitle them to exercise 25% or more of the voting rights in a target company unless the acquirer makes a public announcement of an open offer for at least an additional 26% of total shares. This regulatory mechanism fosters corporate transparency, investor protection, and robust governance standards in India.
25ID: GK-BIZ-00208
hardCompanies Act, SEBI Regulations & Stock Markets
What is the key investor protection feature of the 'Application Supported by Blocked Amount' (ASBA) mechanism mandated by SEBI for all IPO applications?
Verified Explanation
Under the ASBA mechanism introduced and mandated by SEBI for primary market public issues, the application money remains blocked in the investor's own bank account (continuing to earn interest) and is debited by the Self-Certified Syndicate Bank (SCSB) only to the extent of shares actually allotted. This regulatory mechanism fosters corporate transparency, investor protection, and robust governance standards in India.