Initiation

Initiation

SBH Announces New Special Deposit Scheme from 1st JULY

The State Bank of Hyderabad (SBH) on Monday announced a new deposits special scheme -- SBH Swabhiman. The scheme, which offers competitive interest rate of 9 per cent per annum for public and 9.30 per cent per annum for resident senior citizens, will be operational from July 1 to December 31. The scheme would be under reinvestment special term deposit for a period of 5 years, which helps to build corpus fund for annuity returns / regular monthly or quarterly income for the depositor. The maturity proceeds of the special term deposit would enable the customers to reinvest under term deposit with monthly / quarterly payout options of interest for meeting regular expenses. Alternatively, customers can also term deposit `1 lakh or more (in multiples of ` 10,000) for a period of 5 years with option for monthly / quarterly interest payout options. The minimum deposit is `1 lakh (in multiples `10,000) and maximum amount under single deposit is below `100 lakh. There will not be any premature penalty on domestic / NRO deposits after a minimum period of 7 days and 1 year for deposits under NRE. However, after minimum period, the applicable Interest rate for the actually run period with the bank would be paid.

NSSO to take up survey on Domestic Expenditure from July 1

Bangalore, June 21: The 72nd Round of National Sample Survey office, Ministry of Statistics and Programme Implementation (NSSO) to take up field operations for survey on ‘Domestic Tourism Expenditure, Household Expenditure on Services and Durable Goods and Household Consumer Expenditure’ from July 1 and will continue up to June 30, 2015.

VALUE OF BOOKS

The reading habit is one of the greatest resources of mankind. Literature is the immortal part of history and an enduring part of our personality. The great dead are beyond our physical reach. The great living beings are seldom accessible. But in our private library, we can communicate with even most celebrated writers at any moment , through their books, in which they have laid themselves out. Borrowed books are like guests in the hose. Books are our intimate friends. The awareness that the books are there at hand is in itself stimulating and refreshing, even if we do not read all of them.

NCFM-DMDM Questions

NCFM Derivatives Market (Dealers) Module mock test questions Derivatives Market (Dealers) Module Q1 Weekly options trading commenced on NSE in _______. [ 1 Mark ] (a) NSE does not trade in Weekly options (b) 02-Jun-2005 (c) 04-Jul-2005 (d) 04-Jun-2005 (e) I am not attempting the question Q2 A stock is currently selling at Rs. 70. The put option to sell the stock at Rs. 75 costs Rs. 12. What is the time value of the option? [ 1 Mark ] (a) Rs. 7 (b) Rs. 5 (c) Rs. 2 (d) Rs. 4 (e) I am not attempting the question Q3 The value of taxable securities transaction relating to 'option in securities' is the ___________. [ 1 Mark ] (a) aggregate of the strike price and the option premium of such option in securities. (b) the strike price of such 'option in securities' (c) the option premium of such 'option in securities' (d) None of the above (e) I am not attempting the question Q4 An option to buy or sell a swap, that becomes operative at the expiry of the option, is called a _______. [ 1 Mark ] (a) swaption (b) futures (c) basket option (d) warrant (e) I am not attempting the question Q5 On NSE's options market, until the buyer pays in the premium, the premium due is deducted from the available ____________ on a real time basis. [ 1 Mark ] (a) cash deposit (b) liquid net worth (c) cash and non-cash deposit (d) effective deposit (e) I am not attempting the question Q6 To be eligible for options trading, the market wide position limit in the stock should not be less than Rs. ___________ . [ 3 Marks ] (a) 250 crore (b) 100 crore (c) 50 crore (d) 500 crore (e) I am not attempting the question Q7 In case a Future Contract is not traded in a day, which of the following prices is reckoned for daily mark to market settlement? [ 2 Marks ] (a) Closing price of the last traded day (b) Theoretical price (c) Closing price of the futures contract (d) Closing price of the underlying (e) I am not attempting the question Q8 You are the owner of a 2 million portfolio with a beta 1.0. You would like to insure your portfolio against a fall in the index of magnitude higher than 15%. Spot Nifty stands at 2200. Put options on the Nifty are available at three strike prices. Which strike will give you the insurance you want? [ 2 Marks ] (a) 1,870 (b) 1,840 (c) 1,970 (d) None of the above (e) I am not attempting the question Q9 The maximum brokerage chargeable by a trading member in relation to trades effected in the contracts admitted to dealing on the F&O segment of NSEIL is fixed at ______ of the contract value, exclusive of statutory levies. [ 1 Mark ] (a) 1.50% (b) 2.50% (c) 0.75% (d) 3% (e) I am not attempting the question Q10 Ms. Shetty has sold 600 calls on DR. REDDY'S LAB at a strike price of Rs.992 for a premium of Rs.25 per call on April 1, 2002. The closing price of equity shares of DR. REDDY'S LAB is Rs. 994 on that day. If the call option is assigned against her on that day, what is her net obligation on April 01, 2002? [ 2 Marks ] (a) Pay-out of Rs.18,300 (b) Pay-in of Rs.18,300 (c) Pay-in of Rs.13,800 (d) Pay-out of Rs.13,800 (e) I am not attempting the question Q11 Daily Mark to Market settlement of futures takes place on ________ basis . [ 2 Marks ] (a) T+0 (b) T+3 (c) T+5 (d) T+1 (e) I am not attempting the question Q12 What is displayed in the NEAT Trading System Ticker Screen? [ 3 Marks ] (a) The electronic display that continuously shows only the stock symbol, volume and price at which each successive trade occurs. (b) The electronic display that continuously shows only the price at which each successive trade occurs. (c) The electronic display that continuously shows only the stock symbol and volume at each successive trade occurs. (d) None of the above (e) I am not attempting the question Q13 Each user of the trading member in F&O segment of NSEIL is assigned a unique _________ ID [ 3 Marks ] (a) user (b) trading member (c) branch (d) exchange (e) I am not attempting the question Q14 _______ order allows the user to execute a contract as soon as it is entered into the system, failing which the order is immediately cancelled from the system. [ 2 Marks ] (a) GTD (b) IOC (c) Limit (d) GTC (e) I am not attempting the question Q15 Which of the following statement is true? [ 3 Marks ] (a) Basket trading is illegal in India. (b) NSE does not allow basket trading in it's F&O Segment. (c) Basket trading has been discontinued in the F&O Segment. (d) F&O Segment has a Basket trading facility. (e) I am not attempting the question Q16 Immediate or cancel is an order which will automatically __________ in F&O segment of NSEIL. [ 2 Marks ] (a) be matched because it being a preferential order (b) be cancelled if it is not matched immediately and in its entirety (c) get stored in the system for matching, if not executed immediately (d) cancel the unmatched portion of the order quantity (e) I am not attempting the question Q17 Ms. Asha sells an options contract of M/s. XYZ Ltd. (Lot Size: 1000) expiring on 29/Sep/2005 for Rs. 10. The strike price of the contract is Rs. 300. The spot price of the share is Rs. 290. The securities transaction tax thereon would be _________. [ 1 Mark ] (a) Rs. 10 (b) Rs. 40 (c) Rs. 53 (d) Rs. 11 (e) I am not attempting the question Q18 A market index is very important for its use ___________. [ 2 Marks ] (a) as a barometer for market behavior (b) as a benchmark of portfolio performance (c) in portfolio management (d) All of the above (e) I am not attempting the question Q19 An 'authorised person' in the Futures & Options segment is ___________. [ 1 Mark ] (a) any person who is acting in any capacity on behalf of the trading member or a participant for any activity relating to the trades done and executed (b) a person authorised by the exchange as an approved user of a trading member (c) an approved user of a participant (d) All of the above (e) I am not attempting the question Q20 NSCCL's on-line position monitoring system monitors open position of _____________on a real time basis. [ 1 Mark ] (a) clearing member only (b) trading member only (c) clearing member and trading member (d) dealer only (e) I am not attempting the question Q21 The option price is the _______. [ 3 Marks ] (a) price paid by the buyer of the option to the seller of the option (b) price at which an option trades in the market (c) sum of intrinsic value plus time value of an option (d) All of the above (e) I am not attempting the question Q22 Which of the following contracts are compulsorily settled on exercise date? [ 2 Marks ] (a) In the money option contracts (b) Deep at the money option contracts (c) At the money option contracts (d) Out of the money option contracts (e) I am not attempting the question Q23 Which of the following are derivatives? [ 2 Marks ] (a) Options (b) Futures (c) Forward Rate Agreements (d) All of the above (e) I am not attempting the question Q24 Initial margin is collected to __________. [ 2 Marks ] (a) make good daily losses (b) square-off a position on the expiry of the contract (c) safeguard against potential losses on out-standing positions (d) provide for losses that have already occurred (e) I am not attempting the question Q25 Transaction tax is payable by the __________ of the derivative instrument. [ 1 Mark ] (a) buyer (b) designer (c) seller (d) originator (e) I am not attempting the question Q26 The intrinsic value of a call option is the amount the option is ________. [ 1 Mark ] (a) in-the-money (b) at-the-money (c) out-of-the-money (d) above-the-money (e) I am not attempting the question Q27 The beta of Nifty is _______. [ 2 Marks ] (a) 1.7 (b) 1 (c) 0 (d) (-)1 (e) I am not attempting the question Q28 A stock broker is allowed to buy, sell or deal in securities __________. [ 1 Mark ] (a) only on being admitted as a member of a stock exchange (b) on submission of document with SEBI for registration (c) on submission of document with stock exchange for admission (d) only on having a certificate of registration granted by SEBI (e) I am not attempting the question Q29 The market impact cost on a trade of Rs. 3 million of the S&P CNX Nifty works out to be about 0.05%. This means that if S&P CNX Nifty is at 2000, a sell order of that value will go through at a price of Rs. _______. [ 1 Mark ] (a) 1999 (b) 1995 (c) 1,999.50 (d) 1,995.50 (e) I am not attempting the question Q30 ETFs can be ________. [ 1 Mark ] (a) bought and sold on an exchange (b) bought and sold directly with the mutual fund (c) bought on an exchange but sold only directly to the mutual fund (d) None of the above (e) I am not attempting the question Q31 Ms. Shetty has sold 300 calls on WIPRO at a strike price of Rs.1503 for a premium of Rs.28 per call on April 1, 2002. The closing price of equity shares of WIPRO is Rs. 1553 on that day. If the call option is assigned against her on that day, what is her net obligation on April 01, 2002? [ 2 Marks ] (a) Pay-out of Rs. 21,600 (b) Pay-in of Rs.15,000 (c) Pay-out of Rs.13,400 (d) Pay-in of Rs.6,600 (e) I am not attempting the question Q32 VaR methodology seeks to measure the amount of value that a portfolio may stand to lose within a certain horizon time period due to potential changes in ______________. [ 2 Marks ] (a) underlying exposures (b) underlying asset spot price (c) underlying stock volatility (d) underlying index volatility (e) I am not attempting the question Q33 Mr. A sells a futures contract of M/s. XYZ Ltd. (Lot Size: 1000) expiring on 29/Sep/2005 for Rs. 300. The spot price of the share is Rs. 290. The securities transaction tax thereon would be ________. [ 1 Mark ] (a) Rs. 10 (b) Rs. 80 (c) Rs. 20 (d) Rs. 51 (e) I am not attempting the question Q34 An index put option at a strike of Rs. 2176 is selling at a premium of Rs. 18. At what index level will it break even for the buyer of the option? [ 1 Mark ] (a) Rs. 2194 (b) Rs. 2196 (c) Rs. 2158 (d) Rs. 2162 (e) I am not attempting the question Q35 Which of the following is the duty of the trading member? [ 3 Marks ] (a) Sending the periodical statement of accounts to clients (b) Maintaining unique client codes (c) Ensuring timely pay-in and pay-out of funds (d) All of the above (e) I am not attempting the question Q36 Which of the following should be disclosed separately for long and short positions, in respect of each series of equity index futures as of the balance sheet date? [ 1 Mark ] (a) Number of equity index futures contracts having open position (b) Number of units of equity index futures pertaining to the contracts (c) The daily settlement price (d) All of the above (e) I am not attempting the question Q37 Futures differs from forwards in the sense that ________. [ 2 Marks ] (a) settlement of contract takes place in the future (b) both parties are bound to give/take delivery (c) positions are marked-to-market everyday (d) contracts are custom designed (e) I am not attempting the question Q38 You have bought a portfolio of securities on the exchange. To eliminate the risk arising out of market, you should _____. [ 3 Marks ] (a) buy index futures (b) buy stock futures (c) sell stock futures (d) sell index futures (e) I am not attempting the question Q39 The clearing member/trading member is required to disclose to the clearing corporation details of any person(s) acting in concert who together own _____% or more of the open interest of all futures and options contracts on a particular underlying index on the stock exchange. [ 1 Mark ] (a) 12 (b) 15 (c) 20 (d) 25 (e) I am not attempting the question Q40 The spot price of TISCO is Rs. 2050 and the cost of financing is 10%. What is the fair price of a one month futures contract on TISCO? [ 2 Marks ] (a) 2,082.80 (b) 2,066.30 (c) 2,085.15 (d) 2,099.40 (e) I am not attempting the question Q41 Cyrus is short 600 WIPRO July Puts at strike Rs. 1520 for a premium of Rs. 33 each on July 22, 2002. On July 25, 2002 (the expiration day of the contract), the spot price of WIPRO closes at Rs.1553, while the July futures on WIPRO close at 1555. Does Cyrus have an obligation to the Clearing Corporation on his positions, and how much, if any? [ 2 Marks ] (a) Yes. Rs.19,800 pay-out (b) No pay in or pay-out on expiration of contract (c) Yes. Rs.18,900 pay-out (d) Yes. Rs.19,800 pay-in (e) I am not attempting the question Q42 Which of the following is required for personnel working in the industry in order to dispense quality intermediation? [ 1 Mark ] (a) To follow certain code of conduct. (b) To possess requisite skills and knowledge. (c) To have a proper understanding of the business and skills to help it remain competitive. (d) All of the above (e) I am not attempting the question Q43 June futures contract on WIPRO closed at Rs. 1153 on May 20 and at Rs. 1150 on May 21, 2002. Raju has a short position of 4000 in the June futures contract. On May 21, 2002, he sells 3000 units of 10-June-2002 expiring Put Options on WIPRO at strike price of Rs.1145 for a premium of Rs.28 per unit. What is his net obligation to / from the Clearing Corporation for May 21, 2002? [ 2 Marks ] (a) Pay-in of Rs.32,000 (b) Pay-in of Rs.72,000 (c) Pay-out of Rs.96,000 (d) Pay-out of Rs.32,000 (e) I am not attempting the question Q44 Assume that the base value of a market capitalization weighted index were 1000 and the base market capitalisation were Rs.35,000 crore. If the current market capitalisation is Rs.77,000 crore, the index is at Rs. ____. [ 1 Mark ] (a) 2,110 (b) 2,350 (c) 2,250 (d) 2,200 (e) I am not attempting the question Q45 Around 60% of the trading volume on the American Stock Exchange is from __________. [ 1 Mark ] (a) Index Funds (b) Index Futures (c) ETFs (d) Index Options (e) I am not attempting the question Q46 The SEBI Committee on derivatives has recommended that the exposure limits for brokers should be linked to the __________. [ 1 Mark ] (a) daily turnover of the broker (b) networth of the broker (c) satisfactory margin payment track record of the broker (d) deposits kept by the broker with the Exchange/Clearing corporation (e) I am not attempting the question Q47 If the annual risk free rate is 10%, then the `r' used in the Black Scholes formula should be ______. [ 1 Mark ] (a) 0.095 (b) 0.1398 (c) 1.1 (d) None of the above (e) I am not attempting the question Q48 At the balance sheet date, the balance in the `initial margin equity index futures account' should be shown separately under the head ________. [ 1 Mark ] (a) prepaid expenses (b) current assets (c) outstanding balance (d) current liabilities (e) I am not attempting the question Q49 Hedging with index futures means ___________. [ 1 Mark ] (a) long security, short security (b) long index futures, short index futures (c) long security, short index futures (d) long security, long index futures (e) I am not attempting the question Q50 Which of the following is not the duty of the trading member? [ 3 Marks ] (a) Filling of 'Know Your Client' form (b) Assisting the client to arrange for margins (c) Bringing risk factors to the knowledge of client (d) Execution of Client Broker Agreement (e) I am not attempting the question Q51 On expiry, the settlement price of an index futures contract is _______. [ 2 Marks ] (a) opening price of futures contract (b) closing index value (c) closing price of futures contract (d) opening index value (e) I am not attempting the question Q52 The NEAT F&O trading system _____________. [ 3 Marks ] (a) allows one to enter combination trades (b) does not allow combination trades (c) allows only a single order placement at a time (d) None of the above (e) I am not attempting the question Q53 Santosh is bearish about ABC Ltd.and sells ten one-month ABC Ltd.futures contracts at Rs.2,96,000. On the last Thursday of the month, ABC Ltd.closes at Rs.310. He makes a _________. (assume one lot = 100) [ 1 Mark ] (a) profit of Rs. 7,000 (b) loss of Rs. 7,000 (c) profit of Rs. 14,000 (d) loss of Rs. 14,000 (e) I am not attempting the question Q54 A stock broker applies for registration to SEBI _________. [ 1 Mark ] (a) through stock exchange(s) of which he or she is admitted as a member (b) directly (c) through association of members (d) through Ministry of Finance (e) I am not attempting the question Q55 NCFM stands for ___________. [ 1 Mark ] (a) National Certification in Financial Management (b) National Certification in Financial Markets (c) NSE's Certification in Financial Markets (d) NSE's Certification in Financial Management (e) I am not attempting the question Q56 In Indian context, derivative includes: A) A security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or any other form of security; B) A contract which derives its value from the prices, or index of prices, of underlying securities; [ 2 Marks ] (a) A (b) B (c) Both of the above (d) None of the above (e) I am not attempting the question Q57 The futures price is ________. [ 2 Marks ] (a) the price of a contract in the future (b) spot price plus cost of carry (c) the price at which a futures contract trades in the market (d) the price set by the exchange (e) I am not attempting the question Q58 Index options on the S&P CNX Nifty can be exercised ___________. [ 2 Marks ] (a) any time on or before maturity (b) upon maturity (c) any time upto maturity (d) on a date pre-specified by the trading member (e) I am not attempting the question Q59 A trading member allowed to clear his own trades only is known as _________. [ 1 Mark ] (a) Trading member - clearing member (b) Trading members are not allowed to clear their own trades (c) professional clearing member (d) self clearing member (e) I am not attempting the question Q60 The initial margin amount is large enough to cover a one-day loss that can be encountered on ______% of the days. [ 2 Marks ] (a) 95 (b) 50 (c) 99 (d) 90 (e) I am not attempting the question Posted By: NARENDRA P

SUCCESS STORY

Once a person asked Socrates, an ancient Greek philosopher, what is the the secret of Success. Socrates thought for a moment and then told the young man to meet him near the river the next morning. The met next morning. Socrates told the young man to walk with him inside the river. When the water got up to their necks, Socrates took the young man by surprise and ducked him into the water. The man struggled to get out but Socrates was strong and kept him under water until he started turning blue. The young man struggled hard and finally managed to get up. The first thing he did was to gasp and take a deep breath. Socrates asked, “What did you want the most when you were under the water?” The man replied “Air”. Socrates said: “That’s the most secret to success. When you want success as badly as you want air, you will get it. There is no other secret”. Moral of the story: A burning desire is the starting point of all accomplishments. Just like a small fire cannot give much heat, a weak desire cannot produce great results. Read more: http://www.bankersadda.com/2014/06/how-can-i-succeed.html#ixzz33vNrmuQB

Gold continues to sink | Business Line

Gold continues to sink | Business Line

Gold continues to sink | Business Line

Gold continues to sink | Business Line

Both DD, AIR are in line for a mighty bounce back: Prakash Javadekar | Business Line

Both DD, AIR are in line for a mighty bounce back: Prakash Javadekar | Business Line

BSE launches India Infra Index | Business Line

BSE launches India Infra Index | Business Line

modi

Banks smile as Telangana, AP plan ₹1-lakh-crore loan waiver | Business Line

Banks smile as Telangana, AP plan ₹1-lakh-crore loan waiver | Business Line

SEBI invites experts for research on nine topics | Business Line

SEBI invites experts for research on nine topics | Business Line

KCR wins at Gajwel | Business Line

KCR wins at Gajwel | Business Line

Over 200 stocks hit 52-week high on BSE - The Hindu

Over 200 stocks hit 52-week high on BSE - The Hindu

Sensex touches new record high of 22,994

Sensex touches new record high of 22,994 | Business Line

Jignesh Shah arrested in NSEL scam

(i) Jignesh Shah, former director of the scam-ridden National Spot Exchange Limited (NSEL), was arrested by the Mumbai police in connection with the nearly Rs.5,600-crore payment crisis. (ii) The Economic Offences Wing (EOW) of the Mumbai police also arrested the Chief Financial Officer of Financial Technologies India Ltd. (FTIL), Srikant Javlekar. (iii) On September 30, an investor had filed an FIR against the directors and key functionaries of NSEL for cheating, forgery, criminal breach of trust and conspiracy (iv) According to the police, Mr. Shah masterminded the entire scam and engaged in a criminal conspiracy with the co-accused to turn NSEL into a non-banking institution. So far, 11 persons have been arrested in the case. (v) In January, a charge-sheet had been filed against the NSEL CEO, Anjani Sinha, two vice-presidents — Amit Mukherjee and Jay Bahukhundi — and two borrowers of the beleaguered exchange — Nilesh Patel, managing director of NK Proteins and Arun Sharma, film financier and chairman of Lotus Refineries. Read more: http://www.bankersadda.com/2014/05/daily-gk-update-8th-may.html#ixzz31Bu0sPJd

Delhi the most polluted city in the world: WHO

(i) As per a new study conducted by the World Health Organisation (WHO), the air in the national capital is laden with dangerous small particles of pollution, leapfrogging Beijing - the city which was once considered one of the most polluted. (ii) As per various studies conducted, air pollution is the fifth largest killer in India (iii) The international organisation has measured that Delhi has the highest concentration of PM2.5 — particulate matters less than 2.5 microns— form of air pollution, which is considered most serious. (iv) Thirteen of the dirtiest 20 cities were Indian, which included New Delhi, Patna, Gwalior and Raipur in the top four spots, while the Indian capital had an annual average of 153 micrograms of small particulates, known as PM2.5, per cubic metre. (v) Beijing was in 77th place with a PM2.5 reading of 56, little over one-third of Delhi's pollution level, while at the cleaner end of the table, 32 cities reported a PM2.5 reading of less than 5 and three-quarters of those included Vancouver, Hafnarfjordur in Iceland and the other seven were American. (vi) The database covers the period from 2008 to 2013, with the majority of values for the years 2011 and 2012. Read more: http://www.bankersadda.com/2014/05/daily-gk-update-8th-may.html#ixzz31BtG6OHU

President of India dedicates ‘RUPAY’ to the nation

(i) The President of India, Shri Pranab Mukherjee dedicated ‘RuPay’ India’s own card payment network to the nation today (May 8, 2014) at function at Rashtrapati Bhavan. (ii) Speaking on the occasion, the President congratulated the Reserve Bank of India for having envisioned the need for such an indigenously managed service in 2005 and for entrusting this task to the National Payments Corporation soon after its operationalization in 2010. (iii) An indigenous system like RuPay will not only reduce the dependence on cash and cheque modes of settlement but will also make it easier to offer products based on specific requirements of diverse user sets within the country. (iv) The President felicitated Shri A. P. Hota, Managing Director and Chief Executive Officer of NPCI. He also presented appreciation plaques to 17 banks for their contribution in connection with RuPay card. Read more: http://www.bankersadda.com/2014/05/daily-gk-update-8th-may.html#ixzz31BsR0GEp

DGCA allows use of mobiles, laptops in flight mode

The Directorate General of Civil Aviation has allowed the use of portable electronic devices, including cellphone, in flight/airplane mode, during all phases of flight.

I loss the IBPS PO III, but not the HOPE .

my name was not present in the 1st list of IBPS PO III result which is released on 1st April 2014. On this date the new bank licenses are issued by RBI. I lost the job with 0.80 marks. I got 36% score. this score is valid up to 31-03-2015. IF any vacancies are there the IBPS will release the another list...... Hope Fpo The Best.

Why not a ‘Post Bank of India’?

Why not a ‘Post Bank of India’? | Business Line

ibps po interview

today I attended for ibps po-III interview. it is the first banking interview to me. I answered all the questions to the panel. I hope I satisfied all the requirements for the job. I hope for the best.........waiting for results.