M.B.A. II (Semester III) (New CBCS) Examination, 2018
financial management (group
Paper I Indian Financial System (Paper XIX)
Day and Date Thursday, 13-12-2018 Max. Marks 70
Time 10.30 a.m. to 1.00 p.m.
1. Multiple choice questions 14
The basic regulatory authority for mutual funds is
Stock exchanges
Government of India
reserve bank of India
Securities and exchange board of India
The national Stock Exchange is located in
New Delhi Nagpur
Mumbai Kolkata
market is a market for old issues.
Money market Primary market
Secondary market All the above
Money market deals with instruments.
Long term Short term
Medium term All of these
The merchant banker coordinating a public issue is called as
Syndicator Lead manager
Post issue manager None of these
is a shortened form of prospectus.
R ed herring prospectus
Abridged prospectus
Statement in lieu of prospectus
Shelf prospectus
P.T.O.
Set P Seat
No.
Set P
SLR-CL 31 *SLRCL31*
is the process of converting security in electronic form
into physical form.
R ematerialisation Dematerialisation
Demutualisation Mutualisation
One of the following is an example of derivative
Warrants Baskets
Swaptions All of these
In settlement T stands for
Trade time Trade day
Trade terms Time for settlement
10) An order for the purchase of securities at a fixed price is known as
Limit order Open order
Discretionary order Stop loss order
11) Prospectus is not issued in
Public issue Private placement
R ight issue None of the above
12) Money Market mutual fund is also known as
Growth fund Balanced fund
Income fund Cash fund
13) The market for extremely short period loan is called
Call loan market Short notice market
Treasury bill market Commercial bill market
14) Nifty is the index of
BSE NSE OTCEI CSE
2. Answer the following 14
Book Building
Order Types on commodity market.
3. Attempt the following 14
Types of derivative market.
NSE.
4. Attempt any one of the followings 14
Explain the concept of Money Market. Which are the various money market
instruments available in Indian market Explain with its features.
OR Explain components and organizational structure of the Indian Financial System.
5. Case study 14
The Saudi stock market has been witnessing much volatility during the past
one year and the market capitalization had come down by 50%. Mutual funds
that invested in local stocks too had to bear the brunt of the over bearish
trend of the market to a large extent. In the absence of well-developed debt
market including corporate debt securities and the volatility that continues to
prevail in Saudi stock market investment in mutual funds appears to be an
alternative investment for Saudi investors provided right kind of mutual funds
are picked up which are consistent with the risk-return profile of investors.
However, choosing the right kind of fund is the real challenge as there are
185 mutual funds out of which 97 are equity mutual funds. The YTD, 6-month,
3-year returns and sharpe ratio were computed for each of the equity
funds to compare their performance. Out of the six categories of equity mutual
funds in Saudi Arabia, funds invested in Asian and European stocks were
more consistent in their performance and yielded relatively higher returns than
other categories, though funds invested in Saudi stocks yielded higher 3-year
returns.
Analyze the case.
Do you agree with this investment decision
Can you suggest any better investment option