SEBI - Investor Certification Examination
SEBI - Investor Certification Examination
Q 16. Which factor is crucial in understanding whether to invest in a scheme?
Understanding the investment fully
Trusting the investment promoter's assurances
Ignoring account statement errors
Accepting any payment difficulties
Q 17. What should you be cautious of if investment returns seem overly consistent?
Regular fluctuations in returns
Consistent positive returns in all market conditions
Inconsistencies in account statements
Transparent financial disclosures
Q 18. Which investment characteristic should raise suspicion if encountered?
Transparent disclosure of investment details
Licensed professionals handling investments
Easy accessibility to payment withdrawals
Registered Investment Opportunities
Q 19. What action should you take if you encounter unregistered investment opportunities?
Immediately invest without hesitation
the investment to regulators
Trust the investment promoter's credibility
Invest more money for higher returns
Q 20. What investment characteristics should you be wary of if present?
Investments with clear payment schedules
Investments endorsed by licensed professionals
Investments providing complete information
Investments with transparent financial disclosures
Q 21. What should raise suspicion regarding an investment's legitimacy?
Regular updates on investment performance
Guarantee of high returns with low-risk
Transparent disclosure of investment details
Investments registered with government agencies
Q 22. What should you avoid if you cannot understand an investment fully?
Seek advice from licensed professionals
Request more detailed information about the investment
the investment to regulators
Trust the investment promoter's assurances
Q 23. Which investment feature should raise concern if encountered?
Investments with regular fluctuations in returns
Investments involving licensed professionals
Investments providing clear payment schedules
Investments registered with regulators
Q 24. What should you do if you suspect an investment scheme is a Ponzi?
Increase your investment to maximize returns
your suspicions to the relevant authorities
Trust the investment promoter's assurances
Share this investment opportunity with friends and family
Q 25. What should you be cautious of if investments seem too good to be true?
Transparency in investment details
Regular updates on investment performance
Guaranteed high returns with low risk
Accessible Investment Information
Q 26. What type of entities should investors be cautious of when it comes to offering high returns in a short period?
Registered investment firms
Government-regulated entities
Unregistered agencies
Corporate investment banks
Q 27. Which regulatory body in India registers investment advisers and regulates their activities?
RBI (Reserve Bank of India)
SEBI (Securities and Exchange Board of India)
IRDAI (Insurance Regulatory and Development Authority of India)
NSE (National Stock Exchange of India)
Q 28. What is the primary aim of SEBI's regulations concerning investment advisers?
To promote competition among investment firms
To regulate investment product pricing
To protect investors from fraudulent practices
To provide tax benefits to investment firms
Q 29. What is one activity that is illegal for individuals or entities without SEBI registration?
Stock trading
Real estate investment
Providing investment advice
Insurance brokering
Q 30. What malpractices are associated with registered and unregistered entities acting as investment advisers?
Providing transparent investment advice
Offering moderate returns to clients
Charging reasonable fees for services
Following the client's risk profile strictly