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100+ Free CS Executive Capital Market & Securities Laws Practice Questions

Prepare for the ICSI CS Executive Programme Paper 5: Capital Market & Securities Laws exam with instant access — no signup required.

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2026 Statistics

Key Facts: CS Executive Capital Market & Securities Laws Exam

100

Marks in Paper 5

ICSI Executive Programme Syllabus

3 hours

Exam Duration

ICSI Examination Rules

~20% MCQ

Objective Component

ICSI New Syllabus 2022

25%

SAST Open-Offer Trigger

SEBI SAST Regulations 2011

26%

Minimum Open-Offer Size

SEBI SAST Regulations 2011

40% / 50%

Passing Criteria

ICSI Passing Rules

ICSI CS Executive Paper 5 (Capital Market & Securities Laws) is a 3-hour, 100-mark offline pen-paper exam with roughly 20% objective/MCQ-type and 80% descriptive questions and no negative marking. It spans the basics of the capital market, the SEBI Act 1992, SCRA 1956, ICDR 2018, LODR 2015, SAST 2011, PIT 2015, buy-back, the Depositories Act 1996, mutual funds, the debt market, and SEBI intermediaries/investor protection. ICSI passing criteria require 40% in the paper and 50% aggregate in the module. This free bank offers 100 MCQ-style questions grounded in the current syllabus and SEBI regulations.

Sample CS Executive Capital Market & Securities Laws Practice Questions

Try these sample questions to test your CS Executive Capital Market & Securities Laws exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which institution is the statutory regulator of the securities market in India?
A.Securities and Exchange Board of India (SEBI)
B.Reserve Bank of India (RBI)
C.Insurance Regulatory and Development Authority of India (IRDAI)
D.Ministry of Corporate Affairs (MCA)
Explanation: SEBI, established under the SEBI Act, 1992, is the statutory body charged with protecting investor interests and regulating and developing the securities market in India. RBI regulates banking and the money/government-securities market.
2The capital market is broadly divided into which two segments?
A.Money market and bond market
B.Primary market and secondary market
C.Spot market and futures market
D.Wholesale market and retail market
Explanation: The capital market consists of the primary market, where new securities are issued (e.g., IPOs/FPOs), and the secondary market, where existing securities are traded among investors on stock exchanges.
3Under the SEBI Act, 1992, which is NOT one of SEBI's three main functions?
A.Protective function
B.Regulatory function
C.Adjudicatory taxation function
D.Developmental function
Explanation: SEBI performs protective, regulatory and developmental functions to safeguard investors, regulate intermediaries and develop the market. Levying income tax is not a SEBI function; taxation is handled by the income tax authorities.
4An open offer under the SEBI (SAST) Regulations, 2011 is triggered when an acquirer crosses which shareholding/voting-rights threshold in a target company?
A.10% or more
B.15% or more
C.50% or more
D.25% or more
Explanation: Under Regulation 3(1) of SAST 2011, acquiring shares or voting rights entitling the acquirer (with persons acting in concert) to 25% or more triggers a mandatory open offer. The 2011 Code raised this initial trigger from the earlier 15%.
5On triggering a mandatory open offer under SAST 2011, what minimum size of open offer must the acquirer make to public shareholders?
A.At least 26% of voting rights
B.At least 20% of voting rights
C.At least 10% of voting rights
D.At least 100% of voting rights
Explanation: Under Regulation 7 of SAST 2011, the mandatory open offer must be for at least 26% of the total shares of the target company, so that the acquirer can potentially reach majority control.
6Under the 'creeping acquisition' provision of SAST 2011, a person holding 25% or more but less than the maximum permissible non-public shareholding may acquire how much additional voting rights in a financial year without triggering an open offer?
A.Up to 2%
B.Up to 5%
C.Up to 10%
D.Up to 15%
Explanation: Regulation 3(2) of SAST 2011 permits acquirers holding between 25% and the maximum permissible non-public shareholding to acquire up to 5% additional voting rights in a financial year (ending 31 March) without an open offer.
7The SEBI (Prohibition of Insider Trading) Regulations, 2015 primarily prohibit trading on the basis of which type of information?
A.Generally available information
B.Published audited financial statements
C.Unpublished price sensitive information (UPSI)
D.Publicly disclosed dividend records
Explanation: PIT Regulations, 2015 prohibit an insider from trading in securities when in possession of unpublished price sensitive information (UPSI), and from communicating UPSI except for legitimate purposes.
8Which regulations govern the initial public offering (IPO) and further public offering process by listed/to-be-listed companies in India?
A.SEBI (LODR) Regulations, 2015
B.SEBI (Buy-Back) Regulations, 2018
C.SEBI (SAST) Regulations, 2011
D.SEBI (ICDR) Regulations, 2018
Explanation: The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 govern public issues, rights issues, and disclosure requirements for raising capital from the primary market.
9A document inviting the public to subscribe to the securities of a company, containing prescribed disclosures, is called a:
A.Prospectus
B.Memorandum of Association
C.Annual Return
D.Articles of Association
Explanation: A prospectus is the offer document inviting public subscription and disclosing material information about the issuer and the offer, as governed by the Companies Act and SEBI ICDR Regulations.
10Under the SCRA, 1956, the term 'securities' includes which of the following?
A.Only equity shares
B.Shares, scrips, bonds, debentures, derivatives, and units of collective investment schemes
C.Only government bonds
D.Only listed securities
Explanation: Section 2(h) of the Securities Contracts (Regulation) Act, 1956 defines 'securities' broadly to include shares, scrips, stocks, bonds, debentures, derivatives, units of collective investment schemes, and government securities.

About the CS Executive Capital Market & Securities Laws Exam

Paper 5 of the ICSI CS Executive Programme (New Syllabus 2022) covers Capital Market and Securities Laws, testing the SEBI Act, SCRA, ICDR, LODR, SAST, PIT, buy-back, depositories, mutual funds, the debt market, and investor protection. The offline 100-mark paper mixes objective and descriptive questions with no negative marking.

Assessment

Question count not published by the exam provider

Time Limit

3 hours

Passing Score

40% in the paper and 50% aggregate in the module/group, per ICSI rules

Exam Fee

Module/group examination fee payable to ICSI per the current fee structure (Institute of Company Secretaries of India (ICSI))

CS Executive Capital Market & Securities Laws Exam Content Outline

10-12%

Basics of Capital Market

Structure of the capital market, primary vs secondary market, money market vs capital market instruments, market participants, and the regulatory framework.

10-12%

Securities and SEBI Act, 1992

SEBI's establishment, objectives, protective/regulatory/developmental functions, powers, penalties, Securities Appellate Tribunal, and disgorgement.

14-16%

Primary Market and ICDR Regulations

Public issues, IPO/FPO, prospectus and red herring prospectus, book building, promoters' contribution, ASBA, QIP, rights and bonus issues.

10-12%

Secondary Market and SCRA, 1956

Definition of securities, stock exchange recognition, listing, derivatives, settlement, circuit breakers, delisting, and clearing corporations.

10-12%

LODR Regulations, 2015

Continuous listing obligations, corporate governance, audit committee, compliance officer, minimum public shareholding, periodic and material-event disclosures.

8-10%

SAST (Takeovers) Regulations, 2011

Open-offer triggers, creeping acquisition, open-offer size and pricing, control, exemptions, disclosures, and the committee of independent directors.

8-10%

PIT (Insider Trading) Regulations, 2015

UPSI, insider and connected person, trading window, structured digital database, legitimate purpose, disclosures, and penalties.

6-8%

Buy-back of Securities

Buy-back methods, limits and sources under the Companies Act and SEBI Buy-Back Regulations, specified securities, and post-buy-back restrictions.

8-10%

Mutual Funds and Collective Investment

Mutual fund trust structure, AMC, NAV, open/closed-ended schemes, ETFs, index funds, collective investment schemes, and alternative investment funds.

8-10%

Depositories and Debt Market

Depositories Act 1996, NSDL/CDSL, dematerialisation, beneficial owner, fungibility, pledge, debentures, debenture trustees, and money-market instruments.

6-8%

SEBI Intermediaries and Investor Protection

Merchant bankers, registrars, credit rating agencies, FPIs, PFUTP, SCORES grievance redressal, and prospectus disclosure-based investor protection.

How to Pass the CS Executive Capital Market & Securities Laws Exam

What You Need to Know

  • Passing score: 40% in the paper and 50% aggregate in the module/group, per ICSI rules
  • Assessment: Question count not published by the exam provider
  • Time limit: 3 hours
  • Exam fee: Module/group examination fee payable to ICSI per the current fee structure

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CS Executive Capital Market & Securities Laws Study Tips from Top Performers

1Read the bare text of each SEBI regulation (ICDR, LODR, SAST, PIT) alongside the ICSI study material, because exact thresholds and definitions are frequently tested.
2Memorise key numeric thresholds: 25% open-offer trigger, 26% minimum open offer, 5% creeping acquisition, 25% buy-back limit, and 25% minimum public shareholding.
3Practise both MCQ-style and descriptive answers, since the paper mixes about 20% objective and 80% descriptive questions.
4Distinguish clearly between primary-market (ICDR) and secondary-market (SCRA/LODR) provisions, as candidates often confuse the two.
5Keep an error log tagged by regulation so you can revisit weak areas such as SAST exemptions or PIT trading-window rules.
6Track recent SEBI amendments, because the examiner expects awareness of the current position of the law.

Frequently Asked Questions

What is ICSI CS Executive Paper 5?

Paper 5 of the ICSI CS Executive Programme (New Syllabus 2022) is Capital Market & Securities Laws. It is a 100-mark offline paper covering the SEBI Act, SCRA, ICDR, LODR, SAST, PIT, buy-back, depositories, mutual funds, and investor protection.

Is the CS Executive securities laws paper objective or descriptive?

Paper 5 is a mix: roughly 20% objective/MCQ-type questions and 80% descriptive questions, carrying 100 marks in total. There is no negative marking, and the exam is conducted offline in pen-and-paper mode over 3 hours.

What is the passing criteria for CS Executive Paper 5?

Under ICSI rules, a candidate must secure at least 40% marks in the paper and 50% marks in aggregate across the module/group to pass, subject to exemption and registration rules.

Which SEBI regulations are most important for this paper?

The ICDR Regulations 2018, LODR Regulations 2015, SAST Regulations 2011, and PIT Regulations 2015 are core, along with the SEBI Act 1992, SCRA 1956, Depositories Act 1996, Buy-Back Regulations, and mutual fund norms.

What is the open-offer trigger under SEBI SAST 2011?

Acquiring shares or voting rights of 25% or more (with persons acting in concert) triggers a mandatory open offer under SAST 2011, and the open offer must be for at least 26% of the target's shares.

Are these practice questions free?

Yes. This bank of 100 MCQ-style practice questions for CS Executive Paper 5 is completely free, with explanations for each correct and incorrect option to support exam preparation.