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SEBI Investor · Practice Set 2

SEBI Investor Certification Examination — Practice Set 2 Practice Questions

Second original practice set for SEBI Investor Certification Examination with scenario-style questions. Every question below shows the correct answer and a full explanation, so you can read through this set as a study page or attempt it as a timed mock test.

Attempt this set as a timed mock

Prefer an exam-like experience? Start this set as a shuffled, timed mock test with instant scoring, negative marking, and a full review screen.

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Practice questions

All 35 questions in Practice Set 2

Read each question, think through your answer, then expand it to check the correct option and explanation.

Investor rights

Q1. A candidate is reviewing a case where Investor rights affects an investor outcome. What should be checked first?

  1. A. The applicable rule, product feature, or process requirement
  2. B. Only the final numerical option
  3. C. Whether the option sounds familiar
  4. D. The shortest answer choice
Show correct answer & explanation

Correct answer: A. The applicable rule, product feature, or process requirement

Case questions usually test whether the learner can connect facts with the correct rule, product feature, or process.
Investor rights

Q2. During Investor rights revision, two options appear similar. What is the best way to decide?

  1. A. Compare the exact wording and identify the condition that changes the answer
  2. B. Choose the option with broader language every time
  3. C. Avoid the question
  4. D. Select the first familiar term
Show correct answer & explanation

Correct answer: A. Compare the exact wording and identify the condition that changes the answer

Similar options are common in certification exams. The exact condition in the question usually separates the correct answer from a distractor.
Investor rights

Q3. A process under Investor rights is not documented properly. What is the main risk?

  1. A. Weak audit trail, operational errors, or investor grievance
  2. B. Higher practice score
  3. C. Faster certification approval
  4. D. Automatic compliance
Show correct answer & explanation

Correct answer: A. Weak audit trail, operational errors, or investor grievance

Documentation supports accountability, auditability, and dispute resolution.
Investor rights

Q4. Which response shows the best professional conduct in a Investor rights situation?

  1. A. Explain risks and follow the prescribed process
  2. B. Hide limitations to complete the transaction quickly
  3. C. Ignore suitability concerns
  4. D. Rely only on verbal assumptions
Show correct answer & explanation

Correct answer: A. Explain risks and follow the prescribed process

Professional conduct requires transparency, process discipline, and investor-first decision making.
Investor rights

Q5. A mock result shows repeated errors in Investor rights. What should the learner do next?

  1. A. Read explanations, revise notes, and attempt a focused drill
  2. B. Move to another exam permanently
  3. C. Memorise only correct option letters
  4. D. Ignore skipped questions
Show correct answer & explanation

Correct answer: A. Read explanations, revise notes, and attempt a focused drill

Repeated errors are useful signals. They should guide focused revision before another timed attempt.
Market products

Q6. A candidate is reviewing a case where Market products affects an investor outcome. What should be checked first?

  1. A. The applicable rule, product feature, or process requirement
  2. B. Only the final numerical option
  3. C. Whether the option sounds familiar
  4. D. The shortest answer choice
Show correct answer & explanation

Correct answer: A. The applicable rule, product feature, or process requirement

Case questions usually test whether the learner can connect facts with the correct rule, product feature, or process.
Market products

Q7. During Market products revision, two options appear similar. What is the best way to decide?

  1. A. Compare the exact wording and identify the condition that changes the answer
  2. B. Choose the option with broader language every time
  3. C. Avoid the question
  4. D. Select the first familiar term
Show correct answer & explanation

Correct answer: A. Compare the exact wording and identify the condition that changes the answer

Similar options are common in certification exams. The exact condition in the question usually separates the correct answer from a distractor.
Market products

Q8. A process under Market products is not documented properly. What is the main risk?

  1. A. Weak audit trail, operational errors, or investor grievance
  2. B. Higher practice score
  3. C. Faster certification approval
  4. D. Automatic compliance
Show correct answer & explanation

Correct answer: A. Weak audit trail, operational errors, or investor grievance

Documentation supports accountability, auditability, and dispute resolution.
Market products

Q9. Which response shows the best professional conduct in a Market products situation?

  1. A. Explain risks and follow the prescribed process
  2. B. Hide limitations to complete the transaction quickly
  3. C. Ignore suitability concerns
  4. D. Rely only on verbal assumptions
Show correct answer & explanation

Correct answer: A. Explain risks and follow the prescribed process

Professional conduct requires transparency, process discipline, and investor-first decision making.
Market products

Q10. A mock result shows repeated errors in Market products. What should the learner do next?

  1. A. Read explanations, revise notes, and attempt a focused drill
  2. B. Move to another exam permanently
  3. C. Memorise only correct option letters
  4. D. Ignore skipped questions
Show correct answer & explanation

Correct answer: A. Read explanations, revise notes, and attempt a focused drill

Repeated errors are useful signals. They should guide focused revision before another timed attempt.
Risk awareness

Q11. A candidate is reviewing a case where Risk awareness affects an investor outcome. What should be checked first?

  1. A. The applicable rule, product feature, or process requirement
  2. B. Only the final numerical option
  3. C. Whether the option sounds familiar
  4. D. The shortest answer choice
Show correct answer & explanation

Correct answer: A. The applicable rule, product feature, or process requirement

Case questions usually test whether the learner can connect facts with the correct rule, product feature, or process.
Risk awareness

Q12. During Risk awareness revision, two options appear similar. What is the best way to decide?

  1. A. Compare the exact wording and identify the condition that changes the answer
  2. B. Choose the option with broader language every time
  3. C. Avoid the question
  4. D. Select the first familiar term
Show correct answer & explanation

Correct answer: A. Compare the exact wording and identify the condition that changes the answer

Similar options are common in certification exams. The exact condition in the question usually separates the correct answer from a distractor.
Risk awareness

Q13. A process under Risk awareness is not documented properly. What is the main risk?

  1. A. Weak audit trail, operational errors, or investor grievance
  2. B. Higher practice score
  3. C. Faster certification approval
  4. D. Automatic compliance
Show correct answer & explanation

Correct answer: A. Weak audit trail, operational errors, or investor grievance

Documentation supports accountability, auditability, and dispute resolution.
Risk awareness

Q14. Which response shows the best professional conduct in a Risk awareness situation?

  1. A. Explain risks and follow the prescribed process
  2. B. Hide limitations to complete the transaction quickly
  3. C. Ignore suitability concerns
  4. D. Rely only on verbal assumptions
Show correct answer & explanation

Correct answer: A. Explain risks and follow the prescribed process

Professional conduct requires transparency, process discipline, and investor-first decision making.
Risk awareness

Q15. A mock result shows repeated errors in Risk awareness. What should the learner do next?

  1. A. Read explanations, revise notes, and attempt a focused drill
  2. B. Move to another exam permanently
  3. C. Memorise only correct option letters
  4. D. Ignore skipped questions
Show correct answer & explanation

Correct answer: A. Read explanations, revise notes, and attempt a focused drill

Repeated errors are useful signals. They should guide focused revision before another timed attempt.
Grievance redressal

Q16. A candidate is reviewing a case where Grievance redressal affects an investor outcome. What should be checked first?

  1. A. The applicable rule, product feature, or process requirement
  2. B. Only the final numerical option
  3. C. Whether the option sounds familiar
  4. D. The shortest answer choice
Show correct answer & explanation

Correct answer: A. The applicable rule, product feature, or process requirement

Case questions usually test whether the learner can connect facts with the correct rule, product feature, or process.
Grievance redressal

Q17. During Grievance redressal revision, two options appear similar. What is the best way to decide?

  1. A. Compare the exact wording and identify the condition that changes the answer
  2. B. Choose the option with broader language every time
  3. C. Avoid the question
  4. D. Select the first familiar term
Show correct answer & explanation

Correct answer: A. Compare the exact wording and identify the condition that changes the answer

Similar options are common in certification exams. The exact condition in the question usually separates the correct answer from a distractor.
Grievance redressal

Q18. A process under Grievance redressal is not documented properly. What is the main risk?

  1. A. Weak audit trail, operational errors, or investor grievance
  2. B. Higher practice score
  3. C. Faster certification approval
  4. D. Automatic compliance
Show correct answer & explanation

Correct answer: A. Weak audit trail, operational errors, or investor grievance

Documentation supports accountability, auditability, and dispute resolution.
Grievance redressal

Q19. Which response shows the best professional conduct in a Grievance redressal situation?

  1. A. Explain risks and follow the prescribed process
  2. B. Hide limitations to complete the transaction quickly
  3. C. Ignore suitability concerns
  4. D. Rely only on verbal assumptions
Show correct answer & explanation

Correct answer: A. Explain risks and follow the prescribed process

Professional conduct requires transparency, process discipline, and investor-first decision making.
Grievance redressal

Q20. A mock result shows repeated errors in Grievance redressal. What should the learner do next?

  1. A. Read explanations, revise notes, and attempt a focused drill
  2. B. Move to another exam permanently
  3. C. Memorise only correct option letters
  4. D. Ignore skipped questions
Show correct answer & explanation

Correct answer: A. Read explanations, revise notes, and attempt a focused drill

Repeated errors are useful signals. They should guide focused revision before another timed attempt.
Fraud prevention

Q21. A candidate is reviewing a case where Fraud prevention affects an investor outcome. What should be checked first?

  1. A. The applicable rule, product feature, or process requirement
  2. B. Only the final numerical option
  3. C. Whether the option sounds familiar
  4. D. The shortest answer choice
Show correct answer & explanation

Correct answer: A. The applicable rule, product feature, or process requirement

Case questions usually test whether the learner can connect facts with the correct rule, product feature, or process.
Fraud prevention

Q22. During Fraud prevention revision, two options appear similar. What is the best way to decide?

  1. A. Compare the exact wording and identify the condition that changes the answer
  2. B. Choose the option with broader language every time
  3. C. Avoid the question
  4. D. Select the first familiar term
Show correct answer & explanation

Correct answer: A. Compare the exact wording and identify the condition that changes the answer

Similar options are common in certification exams. The exact condition in the question usually separates the correct answer from a distractor.
Fraud prevention

Q23. A process under Fraud prevention is not documented properly. What is the main risk?

  1. A. Weak audit trail, operational errors, or investor grievance
  2. B. Higher practice score
  3. C. Faster certification approval
  4. D. Automatic compliance
Show correct answer & explanation

Correct answer: A. Weak audit trail, operational errors, or investor grievance

Documentation supports accountability, auditability, and dispute resolution.
Fraud prevention

Q24. Which response shows the best professional conduct in a Fraud prevention situation?

  1. A. Explain risks and follow the prescribed process
  2. B. Hide limitations to complete the transaction quickly
  3. C. Ignore suitability concerns
  4. D. Rely only on verbal assumptions
Show correct answer & explanation

Correct answer: A. Explain risks and follow the prescribed process

Professional conduct requires transparency, process discipline, and investor-first decision making.
Fraud prevention

Q25. A mock result shows repeated errors in Fraud prevention. What should the learner do next?

  1. A. Read explanations, revise notes, and attempt a focused drill
  2. B. Move to another exam permanently
  3. C. Memorise only correct option letters
  4. D. Ignore skipped questions
Show correct answer & explanation

Correct answer: A. Read explanations, revise notes, and attempt a focused drill

Repeated errors are useful signals. They should guide focused revision before another timed attempt.
Market products

Q26. In SEBI Investor Scenario Practice, a learner wants to improve accuracy in Market products. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Grievance redressal

Q27. In SEBI Investor Scenario Practice, a learner wants to improve accuracy in Grievance redressal. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Investor rights

Q28. In SEBI Investor Scenario Practice, a learner wants to improve accuracy in Investor rights. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Risk awareness

Q29. In SEBI Investor Scenario Practice, a learner wants to improve accuracy in Risk awareness. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Fraud prevention

Q30. In SEBI Investor Scenario Practice, a learner wants to improve accuracy in Fraud prevention. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Market products

Q31. In SEBI Investor Scenario Practice, a learner wants to improve accuracy in Market products. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Grievance redressal

Q32. In SEBI Investor Scenario Practice, a learner wants to improve accuracy in Grievance redressal. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Investor rights

Q33. In SEBI Investor Scenario Practice, a learner wants to improve accuracy in Investor rights. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Risk awareness

Q34. In SEBI Investor Scenario Practice, a learner wants to improve accuracy in Risk awareness. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Fraud prevention

Q35. In SEBI Investor Scenario Practice, a learner wants to improve accuracy in Fraud prevention. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.

How to use this set

Work through the questions in order without expanding the answers first, exactly as you would in the real SEBI Investor exam. Once you have picked an option, expand the answer to confirm whether you were right and read the explanation, even for questions you answered correctly, since the reasoning behind each option is where most of the learning happens.

If you get a question wrong, note the topic tag above the question and revisit that topic in the SEBI Investor exam page before your next attempt. When you are ready for exam-condition practice, use the timed mock test above; it shuffles these questions, applies the negative marking rule, and gives you a scored review at the end.