NISM MERCHANT BANKING - 5

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Q 1. The applicant Merchant Banker should have in his employment minimum of five persons who have the experience to conduct the business of merchant banker - State True or False ?

True

False
 
Q 2. As per provisions of the regulation 22 of the SEBI Merchant Banking Regulation, for every issue, the lead manager will accept a minimum underwriting obligation of _____ of the total underwriting commitment or _______, whichever is lesser

5% . Rs 10 lakh

5% , Rs. 25 lakh

10% , Rs 25 lakh

10% , Rs 50 lakh
 
Q 3. _________ is an offer document used in case of a book built public issue

Black herring prospectus

Red herring prospectus

Green herring prospectus

Blue herring prospectus
 
Q 4. Under ASBA facility, investors can apply in __________ by using their bank account

Public Issues

Rights Issues

Preferential Issues

Both (1) and (2)
 
Q 5. In the process of acquisition, can the offer price can be paid by cash ?

Yes

No
 
Q 6. A _______ statement has to be sent by the designated controlling branch of the bankers to the issue, to the registrar to an issue, indicating the number of applications received on that date from the investors investing in the issue of the issuer com

daily

weekly

monthly

At the end of the issue
 
Q 7. Can a Merchant Banker be a lead manager or associated with any activity undertaken under any regulations made by SEBI if he is a promoter or director of the issuer of securities - State Yes or No ?

Yes, he can be the lead manager

No, he cannot be the lead manager
 
Q 8. The Offer Document is called __________ in case of a public issue

Application Form

Prospectus

Letter of Offer

None of the above
 
Q 9. As per the SEBI (Issue and Listing of Debt Securities) Regulations, issuers are allowed to retain over-subscription money upto a maximum of ______ of the base issue size

75%

90%

100%

200%
 
Q 10. Is the merchant banker related to the post-issue activities required to advertisements in newspapers giving details relating to over subscription, basis of allotment etc once the issue is over ?

Yes, such advertisements have to be given post issue

No, such advertisements need not be given
 
Q 11. In case an issuer makes an issue through the book building process, he shall appoint __________ at all mandatory collection centers

bankers to issue

collection agents

syndicate members

stock exchange trading members
 
Q 12. A Merchant Banker can only act as a legal advisor to an issue management process - State True or False ?

True

False
 
Q 13. Merchant banking is a ___________ based service for management of public offers and for private placement of securities in the capital market

Fee

Commission

Brokerage

Profit Sharing
 
Q 14. Rule 19 (2)(b)(i) of Securities Contracts (Regulation) Rules, 1957 (SCRR) specifies that at least _______ of each class or kind of equity shares or debentures convertible into equity shares issued by the company, if the post issue capital of the comp

5%

15%

25%

30%
 
Q 15. As per SEBI Act, the penalty for non-disclosure of acquisition of shares and take-over is ________

Rupees one crore or three times the amount of profits made out of such failure, whichever is higher

Rupees ten lakh or three times the amount of profits made out of such failure, whichever is higher

Rupees five crore or three times the amount of profits made out of such failure, whichever is higher

Rupees twenty five lakh or three times the amount of profits made out of such failure, whichever is higher

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