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JAIIB IE&IFS Unit 31 — Capital Markets and Stock Exchanges: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 1 of the November 2026 cycle (1 November 2026)

This page is a free slice of our JAIIB IE&IFS question bank for Unit 31 — Capital Markets and Stock Exchanges (Module D — Financial Products and Services). The Mock Centre holds 48 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

IE&IFS · Module D48 MCQs in the Mock Centre5 free belowPaper on 1 November 2026

Key facts examiners test from this unit

  1. Capital market = long-term debt + equity; primary (public issue + private placement) vs secondary (auction/exchange + dealer/OTC).
  2. Exchange years: BSE 1875 (first permanent recognition), CSE 1908, OTCEI 1990, NSE 1992, MSE Dec 2012 (trading Feb 2013); India INX = BSE's, NSE IFSC = NSE's (GIFT City).
  3. Demutualisation = mutual → shareholder-owned; segregates OWNERSHIP, MANAGEMENT, TRADING; BSE, NSE, OTCEI are corporatised AND demutualised.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
Securities are offered to the public for the FIRST time in the:
Why (b): Securities are offered to the public for the FIRST time in the PRIMARY market — the new-issue market where the issuer gets the money.
Question 2 of 5
NSE was established in:
Why (c): NSE was established in 1992, and its screen-based trading began in 1994 — the electronic revolution.
Question 3 of 5
India's two functional depositories:
Why (a): India's two functional depositories are NSDL AND CDSL — the electronic vaults holding demat securities.
Question 4 of 5
Fixed dividend before equity, NO voting rights:
Why (c): Fixed dividend ranking BEFORE equity, normally NO voting rights: PREFERENCE SHARES — priority in dividend and winding-up.
Question 5 of 5
A RETAIL investor bids for securities worth not more than:
Why (c): A RETAIL investor bids for securities worth NOT MORE THAN ₹2,00,000 in a public issue.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
PrimarySecondaryNew issues vs trading existing paper
Auction marketDealer marketStock exchange vs OTC
Practise all 48 questions on Unit 31. The free demo opens a slice of every subject with the same explanations; the IE&IFS Online-only pass unlocks all 3,032 IE&IFS questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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← Unit 30: Money Markets · Unit 32: Fixed Income Markets (Debt and Bond Markets) → · All IE&IFS units · JAIIB 2026 guide

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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.