NISM MERCHANT BANKING - 9

NISM MERCHANT BANKING

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Q 1. Green Shoe Option is a price stabilizing mechanism in which shares are issued in excess of the issue size, by a maximum of ____

15%

20%

25%

27.50%

Q 2. _________ is a market for short term funds

Stock Market

Currency Market

Money Market

All of the above

Q 3. For a public issue to be successful, the minimum subscription to be received in an issue shall not be less than ______ of the offer through offer document

85%

90%

95%

99%

Q 4. Every merchant banker shall submit to SEBI complete particulars of any transaction for acquisition of securities of any Body Corporate whose issue is being managed by that merchant banker within ______ from the date of entering into such transaction

15 days

20 days

25 days

30 days

Q 5. As per SEBI ICDR Regulations, the issuer company making a public issue or a rights issue, where the aggregate value of the specified securities offered is Rupees ______ or more, shall do so only when the draft offer document along with fees have been

25 lakh

50 lakh

75 lakh

1 crore

Q 6. Regulation _____ of the SEBI ICDR Regulations provides the details of the documents which are require d to be submitted to SEBI before the opening of the issue

5

6

7

8

Q 7. __________ means an arrangement provided by the issuer under which a person offers to purchase specified securities from the original resident retail individual allottees at the issue price

ASBA

Green Shoe Option

Safety net arrangement

Soft Underwriting

Q 8. Which act provides cases which are exempt from the obligation to make an open offer?

Companies Act 2013

The SEBI (Merchant Bankers) Regulations, 1992

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

Depositories Act, 1996

Q 9. In India, the Government securities are issued by the __________

central government

state government

semi-government authorities

All of the above

Q 10. No advertisement shall be issued giving any impression that the issue has been fully subscribed or oversubscribed during the period the issue is open for subscription State whether True or False

True

False

Q 11. Can semi-government authorities issue Government securities ? - State Yes or No

Yes

No

Q 12. Offer Document is called _________ in case of a public issue or offer for sale

Prospectus

Letter of Intent

Company Information Document

None of the above

Q 13. A company has changed its name and now wants to make an Initial Public Offer What are the SEBI regulations with respect to the minimum percentage of revenue it should have earned in the preceding one year from the activity indicated in the new name?

At least 30% of the revenue for the preceding one full year should have been earned by it from the activity indicated by its new name

At least 50% of the revenue for the preceding one full year should have been earned by it from the activity indicated by its new name

At least 60% of the revenue for the preceding one full year should have been earned by it from the activity indicated by its new name

At least 75% of the revenue for the preceding one full year should have been earned by it from the activity indicated by its new name

Q 14. Which of these activities require an appointment of a merchant banker for managing the offer?

Merger of two companies

Amalgamation of two companies

Incorporation of a new company

Acquisition of a listed company

Q 15. The Registrar and Transfer agent (Ramp;T agent) of a company appoints the printers who are engaged in bulk printing of the offer document and application forms - State True or False ?

True

False

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