NISM V-C Competitive Landscape — Practice Questions
Practise the products mutual funds compete with — REITs and InvITs, venture capital and private equity funds, international funds, PMS and AIFs — and the regulatory boundaries between them.
34 questions on Competitive Landscape in the ScoreSetu bank — each with a detailed explanation and, where useful, a memory hook.
What this topic covers
- REITs and InvITs
- Venture capital and private equity
- International funds
- PMS and AIFs
Free sample questions
1. Which of the below is/are SEBI requirements applicable for Principal Protected Market Linked Debentures ?
- A. The instrument should be offered to atleast 50 investors
- B. The instrument should be linked to an index like Sensex / Nifty
- C. The issue size should be of atleast Rs 100 crore
- D. The instrument must be credit-rated by any registered Credit Rating Agency ✅
Answer: D — The instrument must be credit-rated by any registered Credit Rating Agency
Why: The instrument needs to be credit-rated by any registered Credit Rating Agency. It has to bear a prefix ‘PP-MLD’ denoting Principal Protected Market Linked Debentures, followed by the standardized rating symbols for long/short term debt.
💡 PP-MLD must be credit-rated by a registered CRA; carries 'PP-MLD' prefix before rating symbols.
2. The minimum investment required for an investment in Portfolio Management Scheme is _________ .
- A. Rs 10 lakh
- B. Rs 25 lakh
- C. Rs 50 lakh ✅
- D. Rs 1 crore
Answer: C — Rs 50 lakh
Why: SEBI has prescribed a minimum investment of Rs 50 lakh for each investor in a PMS.
💡 PMS minimum investment (SEBI) = Rs 50 LAKH per investor.
3. For issuing Equity Linked Debentures with Principal Protection, _______ .
- A. The intermediary has to ensure that investor understands the risks involved
- B. The instrument needs to be credit-rated by any registered Credit Rating Agency
- C. The Offer Document must be registered with SEBI
- D. All of the above ✅
Answer: D — All of the above
Why: Equity Linked Debentures with principal protection are structured products whose returns are linked to an index while capital is protected. SEBI guidelines require such instruments to be credit rated by a registered rating agency, the offer document to be filed with SEBI, and the intermediary to ensure the investor understands the risks involved. Hence all of the above.
💡 Principal-protected ELDs need: investor risk disclosure + CRA rating + Offer Doc registered with SEBI.
Practise all 34 Competitive Landscape questions
Plus the full 340-question NISM V-C bank and real-feel mock exams.