NISM MERCHANT BANKING - 10

NISM MERCHANT BANKING

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Q 1. In Offer For Sale through Stock Exchange Mechanism, the Seller(s) shall announce the intention of sale of shares prior latest by 5pm on ______ days

T-1

T-2

T-3

T-4

Q 2. There is no Red herring prospectus in a Fixed price issue - State whether True or False?

True

False

Q 3. Which of the following activities can be done by a Category 1 Merchant Banker apart from Advising/Underwriting

Record keeping of all the applicants

Legal advisor to the issue

Issue Management

Arranging for the demat of securities

Q 4. In a Book Built offer, if the floor price is fixed at Rs 1000 than the cap cannot exceed _____

Rs. 1100

Rs. 1200

Rs. 900

Rs. 800

Q 5. In case of an initial public offer, the entire pre-issue capital held by persons other than promoters shall be locked-in for a period of ____ year (apart from some exceptions)

1

2

3

5

Q 6. As per the listing agreement of stock exchanges, the minimum market capitalisation of the issuer should be ___________

Rs 25 crores

Rs 50 crores

Rs 75 crores

Rs 100 crores

Q 7. As per the SEBI (Delisting of Equity Shares) Regulations - It shall be the responsibility of the promoter and the compliance officer to ensure compliance with the provisions as stated by SEBI in its regulations - State True or False ?

True

False

Q 8. As per SEBI Merchant Banking regulations - Every merchant banker shall intimate to SEBI the place where the books of account, records and documents are maintained - State True or False ?

True

False

Q 9. Any non-promoter shareholder of eligible companies holding at least _____ of share capital may also offer shares through the Offer For Sale - OFS mechanism

5%

10%

15%

20%

Q 10. Any company which have been delisted under voluntary delisting clause cannot apply for relisting its shares for a period of ________

one year

two years

three years

five years

Q 11. The advertisement for a Rights Issue shall be made in at least __________

1 Hindi national daily newspaper with wide circulation

1 English national daily newspaper with wide circulation

1 regional language daily newspaper with wide circulation at the place where registered office of the issuer is situated

All of the above

Q 12. In order to issue securities, an issuer has to file a draft offer document with ________ through the appointed lead merchant banker and pay the requisite fees as described in the SEBI (ICDR) Regulations

Commerce Ministry

RBI

SEBI

Registrar of Companies

Q 13. The SEBI Merchant Banking Regulations 1992, provides for cases which are exempt from the obligation to make an open offer - State True or False ?

True

False

Q 14. According to SEBI (ICDR) regulations, the issuer company has a net worth of at least Rs 5 crore in each of the preceding 3 full years to be eligible to come out with a public issue - State True or False ?

True

False

Q 15. The regulation 7 of the SEBI MB Regulations specify that the capital adequacy requirements for applicants seeking registration as Merchant Bankers is that it shall have a net worth of not less than Rs 2 crore - State whether True or False ?

True

False

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