What is the defining characteristic of a 'Foreign Company' operating in India? Option: "It is required to be listed on the Indian stock exchange.", "It is headquartered and incorporated outside of India.", "It is prohibited from collaborating with Indian companies.", "It is exclusively owned by Indian citizens."

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What is the defining characteristic of a 'Foreign Company' operating in India?

"It is required to be listed on the Indian stock exchange."

"It is headquartered and incorporated outside of India."

"It is prohibited from collaborating with Indian companies."

"It is exclusively owned by Indian citizens."

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Can foreigners invest directly in the Indian stock market?

"No, foreign investment is strictly prohibited"

"Yes, but only through specific government bonds"

"Yes, through any brokerage firm"

"Yes, through the Qualified Foreign Investor (QFI) route"

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Which of the following is an example of Foreign Direct Investment (FDI) in India?

Buying mutual funds that invest in Indian companies.

Setting up a manufacturing plant in India.

Purchasing shares of an Indian company listed on the stock exchange.

Investing in Indian government bonds.

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How is dividend income from foreign stocks treated for tax purposes in India?

Taxed as capital gains

Taxed at a flat rate of 10%

Exempt from taxation

Treated as 'income from other sources'

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What is a defining characteristic of Cooperative Banks in India?

"They primarily serve large corporations"

"They are controlled by a managing committee and aim to serve their members"

"They focus on providing loans to startups"

"They are exclusively funded by foreign investments"

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What is a significant tax implication to consider for capital gains earned on foreign shares?

"Higher tax rates compared to domestic shares"

"Taxation at a flat rate regardless of holding period"

"Exemption from capital gains tax in India"

"Potential for double taxation"