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Worksheetscomercial paper
Total questions: 15
Worksheet time: 11mins
Which of the following statements accurately describes the minimum subscription requirement for Commercial Paper (CP) in the depository system?
Investors must subscribe to a minimum of Rs100000 or multiples therefore
Investors must subscribe to a minimum of Rs.5,00,000 or multiples therefore
Investors must subscribe to a minimum of Rs.10,00,000 or multiples therefore
There is no minimum subscription requirement for CP in the depository system
Which of the following accurately describes the unit allocation for Commercial Paper (CP) investments in the depository system?
Each investor receives one unit for every Rs 100000 invested
Each investor receives one unit for every Rs 500000 invested
Each investor receives one unit for every Rs.1000000 invested
The unit allocation depends on the market value of the CP at the time of investment.
In the depository system, how many units would be credited to an investor's account if they invest Rs. 3,00,00,000 in a Commercial Paper
60 units
300 units
100 units
600 units
If an investor chooses to hold Commercial Paper (CP) in a separate account, how are the units credited?
In a single account
In a multipl account
In a joint account
In a demat account
Which of the following denominations is used as the face value for Commercial Paper (CP) in the depository system?
Rs:50000
Rs:10,00,000
5,00,000
Rs:1,00,000
In the depository system, what is the advantage of allowing investors to hold CP in a separate account?
Dematerialization can be initiated directly by the investor without involving a Depositor participant Dp
Only CPs issued by government agencies are eligible for dematerialization.
Investors need to provide their demat account number and DP ID to the Issuer. for dematerialisation
The Issuer provides dematerialization details to the Depository one day after the allotment date.
When should the beneficiary holder transfer the securities in preparation for redemption of Commercial Paper?
On the maturity date
At least one working day before the maturity date
Within 24 hours after the maturity date
Two working days before the maturity date
According to the RBI Monetary and Credit Policy 2001-02, which entities are permitted to hold Commercial Paper (CP) only in dematerialized form?
Banks, financial institutions (Fls), primary dealers (PDs), and satellite dealers (SDs)
Mutual funds and insurance companies
Retail investors
Corporations and government agencies
When does the IPA open a redemption account with the DP?
After the maturity date of the Commercial Paper
) At the time of issuing the Commercial Paper in demat mode
After receiving confirmation from the beneficiary holders
None of the above
What does the IPA certificate provided to the beneficial owner contain?
Details of the maturity date
Details of the redemption account
Details of the secondary market transactions
None of the above
When should the beneficiary holder transfer the securities?
Before the issuance of the Commercial Paper
After 3.00 p.m on the maturity date
Before 3.00 p.m on one working day before the maturity date
None of the above
How is the balance in the redemption account extinguished?
Through credit-type corporate action
Through debit-type corporate actio
Through equity share transactions
None of the above
How do the buyer and seller decide on the transaction details
By consulting with the Securities and Exchange Board of India (SEBI)
Through negotiation between themselves
By seeking approval from the Reserve Bank of India (RBI)
None of the above
When does the buyer receive the securities in its account?
After several days of processing
Immediately if standing instructions are provided to its DP
After receiving confirmation from the stock exchange
None of the above
Can an investor choose to hold Commercial Paper in a separate account?
Yes, always
No never
Yes, but with restrictions
No, unless specified otherwise
