NISM MERCHANT BANKING - 2
NISM MERCHANT BANKING
Mock Test with Answer key - Click Here >>
Q 1. Where there are more than one lead merchant banker to the issue the responsibilities of each of such lead merchant bankers shall clearly be demarcated and a statement specifying such responsibilities shall be furnished to SEBI at least ________ befor
15 days
one month
45 days
two months
Q 2. Which act/regulation provides the general exemptions granted by the SEBI from the obligation to make an open offer, subject to the fulfillment of various conditions?
SEBI ( Substantial Acquisition of Shares and Takeover) Regulation
The Monopolies and Restrictive Trade Practices Act
The Securities Contract (Regulation) Act
SEBI (Prohibition of Insider Trading) Regulations
Q 3. __________ is when an underwriter agrees to buy his commitment at its earliest stage
Hard underwriting
Soft underwriting
Tangible underwriting
Guaranteeing
Q 4. In all types of __________, the merchant banker performs the pivotal role, acting as a catalyst for the entire deal
Hypothecations
Corporate restructuring
Company incorporation
Lease Out
Q 5. The Depository provides its services to clients through its agents called __________
stock brokers
R&T Agents
depository participants
custodians
Q 6. Which process aids price and demand discovery for securities in an Initial Public Offer ?
Book Building Process
Price Bidding Process
Demand Discovery Process
None of the above
Q 7. Mutual Funds based in India are considered as Institutional investors - State True or False ?
True
False
Q 8. A Merchant Banker applicant should have how many people in his employment who should be experienced to conduct the business of Merchant Banker?
2
5
7
10
Q 9. While deciding the price or price band for an IPO, can the floor price or the final price be less than the face value of the specified securities ? State Yes or No
Yes
No
Q 10. A Company is planning to come out with an issue of convertible debt instruments However it has defaulted on the repayment of principal amount by three months, on a debt security issued earlier Can the company issue the convertible debt instruments ?
Yes, the company can issue convertible debt instruments
No, the company cannot issue convertible debt instruments
Q 11. A public issue can be declared to be closed even if ______ of it is subscribed.
75%
80%
90%
99%
Q 12. In a merger, functions relating to ________ are taken care of by the merchant banker i) Appointment of Company Secretary ii) Legal counseling iii) Valuation and due diligence iv) Deal structuring amp; negotiations
i and ii
ii and iii
iii and iv
i and iv
Q 13. Warrants can be issued along with public issue or rights issue of specified securities and a specified security may have _______ warrant(s) attached to it
only one
one or more
minimum five
minimum two
Q 14. A promoter of XYZ company wants to raise resources through public issue He was barred from accessing the capital market last year by SEBI on account of insider trading Is he eligible to come out with public issue?
Yes, he can raise money through public issue
No he cannot raise money through public issue
Q 15. In case of issue of debt securities, how much over subscription money can be retained by the issuers ?
Upto a maximum of 50% of the base issue size.
Upto a maximum of 75% of the base issue size.
Upto a maximum of 90% of the base issue size.
Upto a maximum of 100% of the base issue size.