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Business Studies · 2024 · 3 marks
CBSE 2024 · Region 3 · Set 1 · Q24
(a) Give the meaning of ‘Contract Note’ and ‘T+2’ system in the trading procedure in a stock exchange.
(a)
Give the meaning of ‘Contract Note’ and ‘T+$\displaystyle 2$’ system in the
trading procedure in a stock exchange.
OR
(b)
State any three regulatory functions of Securities and Exchange
Board of India.
Marking-scheme solution
Contract Note
Contract note is a document that contains details of the
number of shares bought or sold, the price, the date and
time of deal and the brokerage charges along with a unique
order code assigned to each transaction.
After the trade has been executed, within $\displaystyle 24$ hours the
broker issues a Contract Note.
T+$\displaystyle 2$ system
All trading transactions are to be completed within $\displaystyle 2$ days
delivery of shares and payment received from the buyer is
on a T+$\displaystyle 2$ basis, settlement period.
Cash is paid or securities are delivered on pay-in day, which
is before the T+$\displaystyle 2$ day. On the T+$\displaystyle 2$ day, the exchange will
deliver the share or make payment to the other broker. This
is called the pay-out day.
Q. State any three regulatory functions of Securities and
Exchange Board of India.
Regulatory Functions
1. Registration of brokers and sub brokers and other players in the
market.
2. Registration of collective investment schemes and Mutual
Funds.
3. Regulation of stockbrokers, portfolio exchanges, underwriters
and merchant bankers and the business in stock exchanges and
any other securities market.
4. Regulation of takeover bids by companies.
5. Calling for information by undertaking inspection, conducting
enquiries and audits of stock exchanges and intermediaries.
6. Levying fee or other charges for carrying out the purposes of
the Act.
7. Performing and exercising such power under Securities
Contracts (Regulation) Act $\displaystyle 1956$, as may be delegated by the
Government of India.
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CBSE Class 12 Business Studies past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.