Economic Organisations and Regulatory Bodies in India Questions and Answers

Answer: B

Correct answer: Mutual funds

SEBI permitted celebrity endorsement of mutual funds at the industry level - campaigns promoting mutual funds as a category, such as the "Mutual Funds Sahi Hai" campaign - rather than of any individual fund house or scheme.

That limit is the point. A celebrity endorsing a particular scheme would suggest a personal recommendation of an investment whose risks the endorser has not assessed, which is exactly what investor protection rules guard against. Individual stocks and insurance products are not covered, and dividends are a payment rather than a product to endorse.

Answer: B

The appellate authority is Deputy Governor of RBI not Governor. The appellate authority is Deputy Governor of RBI not Governor. The bank has also option to file an appeal before the appellate authority under the scheme.

Answer: A

Correct answer: Abu Dhabi

The Union Cabinet approved a memorandum of understanding between SEBI and the securities regulator of Abu Dhabi, providing for co-operation and the exchange of information.

Such bilateral arrangements matter because securities markets are cross-border while regulators are not: investigating a suspected manipulation or an undisclosed beneficial ownership often requires information held in another jurisdiction, and no regulator can compel it from abroad. The pact followed a wider deepening of India's economic relations with the United Arab Emirates in that period.

Answer: D

The Kisan Credit Card provides affordable credit for farmers in India. It was started by government of India, and National Bank for Agricultural and Rural Development (NABARD) in 1989-90 to help farmers access timely and adequate credit. Regional rural bank and commercial banks are the distributary agencies of Kisan Credit Card Scheme.

Answer: C

Correct answer: Application Supported by Blocked Amount

Under ASBA the application money is not paid to the issuer but blocked in the applicant's own bank account, and it is debited only to the extent of the shares actually allotted.

The change this brought is substantial. Before it, the full amount left the investor's account on application and was refunded weeks later for the unallotted portion, with the investor losing the interest and the issuer holding float. Under ASBA the money keeps earning in the applicant's account throughout, and refunds disappear because nothing beyond the allotment is ever debited.