MCQs on Debt Market Instruments

Which of the following is not typically considered a debt market instrument?

• Debentures

• Government securities (G-Secs)

• Treasury Bills

• Equity shares

A debenture issued by a company is essentially:

• An equity instrument

• A debt acknowledgment by the company

• A negotiable instrument under the Negotiable Instruments Act

• An insurance product

Treasury Bills (T-Bills) in India are issued for which of the following tenures?

• 28, 91, 182, 364 days

• 30, 120, 240, 360 days

• 1 year, 3 years, 5 years

• Only 91 days

Which one of the following securities is compulsorily unsecured?

• Non-convertible debentures

• Government securities

• Bonds issued by public sector enterprises

• Commercial Paper

The term "sovereign guarantee" in debt markets refers to:

• Guarantee provided by SEBI

• Guarantee provided by a central or state government

• Guarantee by an investment bank

• Guarantee by insurance companies

Which Act governs the Public Debt of the Union Government in India?

• Companies Act, 2013

• Securities Contracts (Regulation) Act, 1956

• Government Securities Act, 2006

• Indian Contract Act, 1872

Which of the following is classified as an institutional investor?

• An individual investor purchasing bonds on NSE

• A pension fund buying government securities

• A retail trader using a discount brokerage

• A household family investing in fixed deposits

A "Qualified Institutional Buyer" (QIB) under Indian law refers to:

• All individual investors with a demat account

• Retail investors investing less than ₹2 lakh

• Large regulated entities like mutual funds, banks, and insurance companies

• Corporates and start-ups raising debt

Retail investors in government securities in India usually access the market through:

• RBI Retail Direct platform

• Direct seat on NSE debt segment

• Only through foreign institutional investors

• Insurance policies

What is the maximum value limit for retail investors in corporate bond public offerings to qualify as "retail participation"?

• ₹1 lakh

• ₹2 lakh

• ₹5 lakh

• No limit