CMSA Final Exam (2023/2024) –
Questions & Answers (100% Verified)
"relevant body corporate" means a body
corporate of which an exchange holding company is a shareholder who, either alone or
with any associated person, is entitled to exercise or control the exercise of more than
?% of the aggregate of the nominal amount of all voting shares in the
body corporate. - ANSWER - 33
"capital market services" means any service as specified by the Commission under section 76A, but does not include a regulated activity. Is this correct? - ANSWER - yes
"capital market services" means any service as specified by the Commission under section 76A, including any regulated activities. Is this correct? - ANSWER - no
The SC has the power to specify any service to be a capital market service. Is this correct? - ANSWER - yes
A person providing any capital market service shall apply to be registered under section 76A of CMSA. Is this correct? - ANSWER - yes
A person needs not to register to provide any capital market service under section 76A of CMSA. Is this correct? - ANSWER - no
Which is correct? a) "clearing house" means a person whose activities or objects include the provision
of clearing facilities b) "clearing facilities" means a facility whose activities or objects include the provision
of a clearing house - ANSWER - a)
? in relation to a derivative, means to discharge the obligations of a
person in the long position or short position under a derivative and shall include the
discharge of these obligations as a result of the matching up of the derivative with a
derivative of the same kind under which the person has assumed an offsetting short
position or offsetting long position, as the case may be - ANSWER - close out
The SC's power to make regulations include the following activities ? - ANSWER - CMSA 378
Does the Minister have the power to approve a body corporate as a stock exchange or derivatives exchange? - ANSWER - yes
Who has the power to approve a body corporate as a stock exchange or derivatives exchange, the SC, BNM or the Minister? Such an application for approval shall be first sent to the SC, BNM or the Minister?, whereupon the said party shall submit to the SC, BNM or the Minister? such application together with its recommendation. - ANSWER - the Minister; the SC; the Minister
"exchange holding company" means a body corporate that is the holding company of any body corporate approved as a stock exchange or derivatives exchange, and that has been approved as an
exchange holding company under section 15 of CMSA, but not a body corporate that is the holding company of central depository or approved as a clearing house. Is this correct? - ANSWER - no
"exchange holding company" means a body corporate that is the holding company of any body corporate approved as a stock exchange, derivatives exchange,
central depository or approved as a clearing house and that has been approved as an
exchange holding company under section 15 of CMSA. Is this correct? - ANSWER - yes
Who has the power to approve a body corporate as an exchange holding company, the SC, BNM or the Minister? Such an application for approval shall be first sent to the SC, BNM or the Minister?, whereupon the said party shall submit to the SC, BNM or the Minister? such application together with its recommendation. - ANSWER - the Minister; the SC; the Minister
"foreign supervisory authority" means a foreign authority or any other person
which exercises functions corresponding to the functions of the SC, BNM or the Minister? under the
securities law - ANSWER - the SC
Does "information service" incude bond pricing facilities? - ANSWER - no
a derivative other than a standardized
derivative is called ? - ANSWER - over-the-counter derivative
Does the Minister have power to prescribe any instrument or product or class of instruments or products to be—
(a) securities;
(b) derivatives;
(c) capital market products;
(d) Islamic securities;
(e) Islamic derivatives; or
(f) Islamic capital market products,
for the purposes of the securities law? - ANSWER - yes
x/y? of the number of directors on the board of such exchange holding company, stock exchange or derivatives exchange, as the case may be, shall be appointed by the Minister, in consultation with the Commission, to be public interest directors of the exchange holding company, stock exchange or derivatives exchange. public interest directors shall hold office for a period specified by the Minister which
shall not exceed a term of 1,2,3? years. Are public interest directors eligible for reappointment upon the completion of his/her term? - ANSWER - 1; 3; 3; yes
The Minister shall, in consultation with the Commission, appoint 1,2,3? person(s) from amongst the public interest directors so appointed to
be the non-executive Chairman of the board of the exchange holding company, a stock
exchange or derivatives exchange, as the case may be, whose remuneration shall be
determined by a) the Minister b) the SC c) the board of the exchange holding company, stock exchange or
derivatives exchange, as the case may be. - ANSWER - 1; c)
Can the SC refuse any public interest directors proposed by the Minister to be the public
interest directors of the exchange holding company, stock exchange or derivatives exchange? - ANSWER - yes
"recognized market" means a stock market or a derivatives market operated or
maintained by an operator registered under section 34 of CMSA. Such reconigsed market operators are registered by the SC, the Minister, the Exchange or BNM? - ANSWER - the SC
No person shall whether as a principal or agent, carry on a business in
any regulated activity or hold himself out as carrying on such business unless he is the
holder of a Capital Markets Services Licence or is a registered person. Is this correct? - ANSWER - yes
No person shall whether as a principal or agent, carry on a business in
any regulated activity or hold himself out as carrying on such business unless he is the
holder of a Capital Markets Services Licence or is a registered person. Does this apply to specified persons as listed under Schedule 3 of CMSA? - ANSWER - no
No person shall whether as a principal or agent, carry on a business in
any regulated activity or hold himself out as carrying on such business unless he is the
holder of a Capital Markets Services Licence or is a registered person. A person who contravenes commits an offence and shall,
on conviction, be liable to a fine not exceeding RM? or to imprisonment for a term not exceeding ? years or to both. - ANSWER - 10,000,000; 10
Can a person registered with a recognized self-regulatory organization under
section 323 of CMSA be regarded as a registered person? - ANSWER - yes
Can a person registered with a body that is approved by the Commission regarded as a registered person? - ANSWER - yes
