SEBI Grade A (General Stream) Mock Test - 2 Free Online Test 2026

In News: SEBI amended AIF regulations in October 2025 to strengthen governance and disclosure norms.

Key Points:

• Minimum investment of ₹1 crore for Category III AIFs
• Enhanced disclosure requirements for fund managers
• Stricter compliance norms for related party transactions
• Quarterly reporting made mandatory

In News: NSE inaugurated green bond derivatives trading to promote sustainable finance in India.

Key Points:

• First-of-its-kind platform in India for ESG-linked derivatives
• Supports India's climate finance goals
• Enhances liquidity in green bond markets
• Regulated under SEBI (Stock Exchanges and Clearing Corporations) Regulations
   

In News: SEBI revised REIT and InvIT regulations to boost infrastructure financing and real estate investment.

Key Points:

• Statement 1 - Correct: 80% minimum in completed, rent-generating properties
• Statement 2 - Incorrect: Public float remains at 25%, not increased to 35%
• Statement 3 - Correct: InvITs allowed 20% exposure to under-construction projects
• Changes aim to balance liquidity with growth opportunities

In News: SBI pioneered blockchain-based trade finance to reduce settlement time and enhance security.

Key Points:

• Integration with NSDL and CDSL for digital documentation
• Reduces trade finance cycle from 7-10 days to 24-48 hours
• Enhances transparency in letter of credit transactions
• Part of India's Digital India 2.0 initiative

In News: G20 nations agreed on unified framework for cryptocurrency and digital asset regulation at Gandhinagar summit.

Key Points:

• Framework emphasizes investor protection and AML compliance
• Proposes global standards for stablecoin regulation
• India's role in shaping crypto policy highlighted
• SEBI's regulatory approach presented as model framework

In News: SEBI expanded ESG disclosure requirements to enhance corporate transparency and sustainable practices.

Key Points:

• Top 1,000 listed companies by market cap must file BRSR
• Core indicators include carbon emissions, water usage, and diversity metrics
• Third-party assurance required from FY 2025-26
• Aligns with global ESG standards

In News: SEBI extended trading hours to align with global markets and improve price discovery.

Key Points:

• Statement 1 - Correct: Equity market closes at 3:45 PM instead of 3:30 PM
• Statement 2 - Incorrect: Pre-market session now starts at 8:45 AM
• Statement 3 - Correct: Extension covers equity, F&O, and commodity derivatives
• Change increases market participation and liquidity

In News: IRDAI's Bima Sugam platform went live to simplify insurance buying and claim settlement processes.

Key Points:

• One-stop digital marketplace for all insurance products
• Enables instant policy comparison and purchase
• Integrated claim tracking system
• Connects insurers, distributors, and customers on single platform

In News: NSE and BSE simultaneously launched optional T+0 settlement for top 500 stocks.

Key Points:

• Initially available for top 500 stocks by market capitalization
• Investors can opt between T+0 or T+1 settlement
• Enhances liquidity and capital efficiency
• SEBI approval obtained in July 2025

In News: SEBI formed a new committee under Chairperson Justice (Retd.) A.K. Sikri to review corporate governance.

Key Points:

• Focus on board independence and audit quality
• Review of related party transaction norms
• Examination of shareholder rights protection
• Recommendations expected by March 2026

In News: PFRDA launched NPS Vatsalya to encourage early retirement planning for children.

Key Points:

• Parents/guardians can open accounts for minors
• Converts to regular NPS account at age 18
• Minimum contribution of ₹1,000 per year
• Tax benefits under Section 80CCD

In News: SEBI operationalized SSE framework to channel capital toward social welfare projects.

Key Points:

• Statement 1 - Correct: 3-year track record mandatory for NPOs
• Statement 2 - Correct: Multiple fundraising instruments available
• Statement 3 - Correct: Minimum issue size is ₹50 lakh
• Platform hosted on NSE and BSE

In News: RBI launched ULI to enable seamless flow of digital information for faster loan approvals.

Key Points:

• Plug-and-play credit system similar to UPI for payments
• Reduces loan processing time significantly
• Integrates borrower data from multiple sources
• Enhances financial inclusion

In News: CCI cleared the merger between Motilal Oswal and Sharekhan to create India's fourth-largest retail brokerage.

Key Points:

• Combined entity to serve 8+ million clients
• Market share remains below threshold requiring detailed scrutiny
• Regulatory approvals from SEBI also obtained
• Merger to complete by Q1 FY 2026

In News: India won the bid to host IOSCO 2026, marking the first time the conference will be held in South Asia.

Key Points:

• SEBI to coordinate the event at GIFT City, Gandhinagar
• Expected participation from 130+ countries
• Focus on fintech regulation and market integrity
• Showcases India's financial sector development

In News: SEBI released comprehensive SPAC regulations to attract global investors and innovative companies.

Key Points:

• Sponsors must have ₹100 crore minimum net worth
• Minimum issue size of ₹250 crore
• 24-month deadline for business combination
• Enhanced investor protection measures included

In News: SEBI tightened algorithmic trading norms to prevent market disruptions and flash crashes.

Key Points:

• Statement 1 - Correct: Annual algo audit mandatory
• Statement 2 - Correct: 2-second kill switch requirement
• Statement 3 - Incorrect: Retail investors can use approved algo systems
• Enhanced risk management frameworks required
   

In News: India issued its third sovereign green bond to fund renewable energy and climate projects.

Key Points:

• Part of ₹50,000 crore green bond program announced in Budget 2025
• Funds allocated to solar, wind, and green hydrogen projects
• Received strong demand from ESG-focused institutional investors
• Yields competitive with conventional government securities

In News: Shipping Corporation of India completed India's largest FPO in 2025 with simultaneous listing on both exchanges.

Key Points:

• Raised ₹2,800 crore through FPO
• Government reduced stake from 72% to 55%
• Strong retail and institutional participation
• Part of disinvestment target for FY 2025-26

In News: SEBI launched "Nivesh Gyaan" campaign across 100 cities to promote investor education.

Key Points:

• Focus on digital financial literacy
• Targets tier-2 and tier-3 cities
• Covers basics of securities markets, mutual funds, and investor rights
• Partnership with schools and colleges for youth outreach
   

The correct answer is fake plastic eggs.

Key Points

• The paragraph clearly states the following –

‘Two weeks ago, Kerala was aflutter over reports that “fake” plastic eggs from China were being sold in supermarkets.'

• Hence from the passage, we can infer that option 2 is the correct answer.

The correct answer is 'hyperbole'.

Key Points

• The word ‘rhetoric’ means the art of effective or persuasive speaking or writing, especially the exploitation of figures of speech and other compositional techniques.
• ’Rhetoric’ also displays a lack of sincerity and meaningful content.
• Hyperbole means exaggerated statements or claims not meant to be taken literally.
• This makes option 1 the correct answer.

Additional Information

The meaning of the other options are as follows -

• quiet - making little or no noise.
• conciseness - communicating complete information about a topic or idea in a few words.
• economic - justified in terms of profitability.

The correct answer is option 3.

Key Points

• It is stated in the paragraph –
  • ‘ Boycott of products at a time when long-term plans have not yet fully yielded results causes negative impact at home.
  • Without suitable Indian alternatives, boycotting Chinese products hurts the earning of the Indian trader who has invested his money in them and now is unable to sell them off to earn the money back. ‘.
• Thus it can be inferred that due to lack of suitable Indian alternatives, if Chinese products are boycotted , the Indian traders who have invested in getting the Chinese products to India will suffer losses.
• Thus option 3 is the best fit answer.

The correct answer is 'sanctioned'.

Key Points

• If a country, group, or person boycotts a country, organization, or activity, they refuse to be involved with it in any way because they disapprove of it.
• Sanctioned means to give official permission or approval for (an action).
• This makes option 3 the correct answer.

Additional Information

The meaning of the other options are as follows -

• avoid - keep away from or stop oneself from doing (something).
• exclude - deny (someone) access to a place, group, or privilege.
• outlaw - ban or make illegal.

The correct answer is No rearrangement required.

Key Points

• Authorities: officials or the people in charge
• Ensuring: make sure

Important Points

We may consider A, B, and C to be three blanks. A is the first blank, B is the second, and C is the third.

• The subject is acted upon by the verb. Hence, the past participle form of the verb('verb³') should be chosen for the first blank. Thus, the correct choice is 'known'.
• The word 'authorities' is appropriate for the second blank because the civic officials of the country had to deal with a difficult situation.
• The word 'ensuring' is appropriate for the third blank because it is the duty of the civic officials to observe and make sure that social distancing was properly maintained.

The correct answer is CAB.

Key Points

• Determined: discovered or found out
• Probably: almost certainly
• Investigations: systematic examination

Important Points

We may consider A, B, and C to be three blanks. A is the first blank, B is the second, and C is the third.

• A noun is required for the first blank because the word 'Archaeological' is an adjective. The word 'investigations' is a noun and it is appropriate for the first blank.
• A verb is needed for the second blank because we should mention what was found out by the investigations. Hence, the correct choice is 'determined'.
• The word 'probably' is suitable for the third blank because an approximate timescale is given. Therefore, 'probably' is the correct choice.

The correct sentence will be: Archaeological investigations carried out in 2005-06 determined that the hard-surfaced track is medieval in date and was probably laid during the early to the mid-14th century.

The correct answer is ACB.

Key Points

• Protect: to keep from harm
• Product: commodity or creation
• Invest: put money into

Important Points

We may consider A, B, and C to be three blanks. A is the first blank, B is the second, and C is the third.

• The word 'protect' is appropriate for the first blank. The purpose of insurance is to protect the family against health emergencies. Hence, the correct choice is 'protect'.
• The base form of the verb(Verb¹) is required for the second blank because the preposition 'to' is used before the blank. Thus, the verb 'invest' is appropriate for the second blank.
• The word 'product' is appropriate for the third blank. The word 'product' should be used here to refer to the products provided by insurance companies. Thus, the correct choice is 'product'.

The correct sentence will be: Insurance has become the most-preferred financial product to protect the family against health emergencies post the COVID-19 pandemic with more people inclined to invest in an insurance product.

The correct answer is i.e. 'C' this part of the sentence has an error.

Key Points

• In the third part of the sentence 'about' should be omitted.
• This is an example of superfluous sentence.
• Discuss is not followed by any preposition.

Hence the correct answer is option 3.

Additional Information

• There are certain verbs which are not followed by any preposition e.g. consider, influence, emphasize etc.

The correct answer is 'D' i.e. this part of the sentence has an error.

Key Points

• In the fourth part of the given sentence, the use of the preposition 'between' is incorrect.
  • We use the preposition 'between' to refer to two things that are clearly separated.
    • The preposition 'between' means in the space in the middle of two things, people, places, etc.
    • 'Between' is used when naming distinct, individual items (can be 2, 3, or more).
  • We use 'among' to talk about things that are not clearly separated because they are part of a group or crowd or mass of objects.
    • The preposition 'among' means being a member or member of a larger set.
    • 'Among' is used when the items are part of a group or are not specifically named (must be 3 or more).
• Therefore, the preposition 'among' should be used in place of the preposition 'between'.
  ​

Hence, the correct answer is option 4.

Correct sentence: The grandfather brought the chocolates and distributed them among his children.

The correct answer is "has an indigenous."

Key Points

• The subject in the given sentence is "India" which is a singular noun.
• "Have" is used with some pronouns and plural nouns while "has" is used with the third person singular or singular nouns.
  • Thus, it can be inferred that option 1 will be eliminated.
• Now, let us understand the meaning of the following:
  • "Indigenous" is (used about people, animals, or plants) living or growing in the place where they are from originally.
    • Example: The park is also home to indigenous tribes.
  • "Ingredient" means one of the qualities necessary to make something successful.
    • Example: Friendship is an essential ingredient in the making of a healthful, rewarding life.
• In the given sentence, the blank will elaborate more about the Light Combat Helicopter. Thus, the correct word to use will be "indigenous."
  • Thus, options 2 and 4 will be eliminated.
• Also, we know that "an" is used when the noun that follows begins with a vowel sound.

Hence, it can be concluded that the correct answer is option 3.