NISM MERCHANT BANKING - 4

NISM MERCHANT BANKING

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Q 1. The facility of Offer For Sale through Stock Exchange Mechanism shall be available on _________

NSE only

BSE only

Both NSE and BSE

All SEBI Registered stock exchanges of India

Q 2. The underwriters are appointed by the issuer company in accordance with the _______

SEBI (Certification of Associated Persons in Securities Markets) Regulations

SEBI (Underwriters) Regulations

SEBI (Merchant Banking) Regulations

SEBI (ICDR) Regulations

Q 3. _________ is the regulator for the insurance sector in India

RBI

IRDAI

SEBI

Finance Ministry

Q 4. Merchant Bankers have to maintain and preserve the documents relating to the due diligence exercised by them of the pre-issue and post-issue activities of issue management for a period of 3 years - State True or False ?

True

False

Q 5. The lead merchant banker is required to submit the final post-issue reports within ____ days of the date of finalization of basis of allotment

5


10


15


30


Q 6. The details of investor complaints received by the Merchant Bankers have to be informed to ______ with respect to the number of complaints, nature , action taken etc

Issuer Company

Finance Ministry

SEBI

Stock Exchanges

Q 7. As per the SEBI (Delisting of Equity Shares) Regulations, 2009, the promoter is required to despatch the letter of offer to the public shareholders of equity shares, not later than 45 working days from the date of the public announcement - State whet

True

False

Q 8. As per regulation 26 (1) of the SEBI ICDR Regulations, an issuer may make an initial public offer, if ___________

the issuer company has net tangible assets of at least Rs. 3 crore in each of the preceding three full years, of which not more than 50% are held in monetary assets.

it has a minimum average pre-tax operating profit of rupees fifteen crore, during the three most profitable years out of the immediately preceding five years

the issuer company has a net worth of at least Rs. 1 crore in each of the preceding 3 full years

All of the above

Q 9. When there is a public announcement for buyback of shares, than the announcement should contain the audited financial information for the last ____ years and this financial information should not be more than ___ old

5 years ; 6 months

2 years ; 3 months

9 years ; 12 months

3 years ; 6 months

Q 10. In acquisitions and takeovers involving open offers, the merchant banker's role involves managing the public offer and ensuring compliance with the ____________

SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011

The Monopolies and Restrictive Trade Practices Act, 1969

The Securities Contract (Regulation) Act, 1956

All of the above

Q 11. The certificate provided under the SEBI (Certification of Associated Persons in Securities Markets) Regulations is valid for a period of _____ from the date of grant of certificate or revalidation as the case may be

1 year

3 years

5 years

7 years

Q 12. M/s ABC has come out with a public issue and its issue gets oversubscribed on the first day itself Can it advertise this in newspapers before the issue closing date ?

Yes, the company can advertise

No, the company cannot advertise

Q 13. Can any non-promoter shareholder offer its share through the Offer For Sale through the Stock Exchange Mechanism ?

Yes

No

Q 14. The non-refundable fees payable to SEBI as prescribed in the SEBI (SAST) Regulations for an open offer upto Rs ______ is Rs 125000

Rs 5 crore

Rs 10 crore

Rs 25 crore

Rs 50 crore

Q 15. As per the Code of Conduct for Merchant Bankers - A merchant banker shall not be responsible for the Acts or omissions of its employees and agents in respect of the conduct of its business - State True or False ?

True

False

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