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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Securities Market Segments

Which of the following is a feature of the corporate bond market segment in India that distinguishes it from the equity market?

Bonds are debt instruments that pay a stated coupon and return principal at maturity, so holders are creditors of the issuer. Equity shareholders are owners who get dividends and voting rights, which is why the other options are incorrect.

  1. AHolders of bonds are owners of the company with voting rights
  2. BBonds pay a stated coupon and are redeemed at maturity, representing a debt claim on the issuerCorrect
  3. CBond returns consist only of dividends declared from profits
  4. DBonds are never listed or traded on exchanges

Explanation

A bond is a debt instrument: the issuer promises periodic interest (coupon) and repayment of principal at maturity, making the holder a creditor. Equity holders are owners with voting rights and receive dividends, so the other options describe equity or are false, since bonds can be listed.

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