Advanced Wealth Management Course (IIBF) - Paper 3
Part II: Ch 7: Corporate Bonds
Q1.
The issue of corporate bonds is governed by:
Q2.
Who is responsible for the market for repo/reverse repo transactions in corporate debt?
Q3.
According to SEBI Regulations, 2008 the issuing company needs to enter into a Trustee Agreement within __________ of closure of the issue.
Q4.
(I) The trades on WDM segment are settled through National Securities clearing Corporation which provides novation for all trades. (II) Trades on CM segment of NSE are settled on a trade-by-trade basis on the settlement day.
Q5.
FIs and PDs are permitted to make fresh investments and hold bonds and debentures only in dematerialized form.
Q6.
Around __________ of corporate bond issuance is through private placements and is not regulated.
Q7.
Withdrawal from Debenture Redemption Reserve (DRR) is permissible only after at least _________ of the debenture liability has been redeemed.
Q8.
(I) Debentures rated ‘AAA’ are judged to offer highest safety of timely payment of interest and principal. (II) Debentures rated ‘BBB’ are judged to have greater susceptibility to default.
Q9.
Rating agencies may apply ‘+’(plus) or ‘-‘ (minus) signs for ratings AA to C to reflect relative comparative stranding within the categories.
Q10.
(I) Debentures rated ‘AA’ are judged to carry inadequate safety of interest and principal. (II) Debentures rated ‘D’ are in default and in arrears of interest or principal payments or are expected to default on maturity.