NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Investing in Stocks (NISM XXI-A)
Which of the following best describes a 'large-cap' stock classification in India as per SEBI's categorisation for mutual funds?
Large-cap companies are those ranked 1st to 100th by full market capitalisation under SEBI's categorisation. Mid-caps are ranked 101 to 250 and small-caps from 251 onwards. Face value has no bearing on this classification.
- ACompanies ranked 1st to 100th by full market capitalisationCorrect
- BCompanies ranked 101st to 250th by full market capitalisation
- CCompanies ranked 251st onwards by full market capitalisation
- DCompanies with a face value above Rs 10
Explanation
SEBI defines large-cap as the top 100 companies by full market capitalisation, mid-cap as 101st to 250th, and small-cap as 251st onwards. Face value plays no role in the classification.
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