JAIIB · IEIFS

CAPITAL MARKETS AND STOCK EXCHANGES

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.

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Q

What is a capital market?

A

A capital market is a financial market where long-term debt or equity-backed securities are bought and sold, channelling savings into productive investments with maturities exceeding one year.

Q

What is the full form of SEBI?

A

Securities and Exchange Board of India

Q

What is the primary market in the context of capital markets?

A

The primary market is where new securities are issued and sold for the first time by companies or governments directly to investors, enabling capital formation.

Q

In which year was SEBI established as a statutory body?

A

SEBI was established as a statutory body in 1992

Q

What is the secondary market?

A

The secondary market is where previously issued securities are traded among investors without the issuing company being involved, providing liquidity to security holders.

Q

What is the full form of NSDL?

A

National Securities Depository Limited

Q

Which regulatory body governs the capital markets in India?

A

The Securities and Exchange Board of India (SEBI), established under the SEBI Act 1992, is the apex regulatory authority for the Indian capital market.

Q

What is the full form of CDSL?

A

Central Depository Services Limited

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