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NISM Series IX: Merchant Banking Certification Mock Test (Set 2)

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NISM Series IX: Merchant Banking Certification Mock Test (Set 2)

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1. True or False: A company can announce a Rights Issue even if some of its existing shares are only partially paid up.

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2. True or False: The merchant banker leading a public offer is commonly referred to as the Lead Manager.

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3. A person who feels harmed by any decision from SEBI can appeal to the Securities Appellate Tribunal (SAT) within a timeframe of _______ starting from the day they received a copy of the order.

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4.

If there’s a public offering of debt securities, the initial document called the Draft Prospectus must be open for public comments for a specific period of time, which is ________.

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5.

According to the Depositories Act, the main job of the Depository is to give a way for investors to keep their securities ____________ and transfer ownership of securities using a record in a book.

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6.

The floor price or the final price shall not be ___________ the face value of the specified securities.

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7.

True or False: In the case of a further public offer or a rights issue, the issuer must obtain in-principle approval from all recognized stock exchanges where the specified securities are listed.

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8. Yes or No: Can semi-government authorities issue government securities in India?

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9. True or False: The issuer must pay fees to SEBI along with the Offer Document based on the issue size. If the issue size is not accurately known or estimated, then any excess fees must be paid within 5 working days of filing the prospectus with the Registrar of Companies.

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10.

If a company planning an initial public offer intends to list its shares only on the NSE (National Stock Exchange), it is required to obtain in-principle approval specifically from the NSE.

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11. Warrants can be issued along with a public issue, with a tenure not exceeding more than _________ from the date of allotment in the public issue.

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12.

The goal of ________ is to stop unwanted speculation in the Securities Market.

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13.

According to the SEBI (Prohibition of Insider Trading) Regulations, each listed company, market intermediary, and individuals creating a code of conduct must appoint a _________ to oversee the code of conduct.

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14. True or False: Compulsory delisting occurs when the issuer company no longer wants to be on the trading platform of the exchange and exits out of the Exchange.

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15.

As per section 33 of the Companies Act 2013, no form of application can be issued for the purchase of any securities of a company unless it is accompanied by an abridged prospectus. The exception(s) to this rule is/are __________.

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16.

The Qualified Institutional Placement shall be made at a price not less than the average of the weekly high and low of the closing prices of the equity shares of the same class quoted on the stock exchange during the ______ weeks preceding the relevant date.

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17.

In cases where there is a devolvement on underwriters, the merchant banker has to ensure that the notice for devolvement containing the obligation of the underwriters is issued within a period of ________ days from the date of closure of the issue.

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18.

True or False: A listed company coming out with a Rights issue is required to file the draft offer document with SEBI.

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19.

According to SEBI SAST regulations, the open offer for acquiring shares to be made by the acquirer shall be for at least _________ of the total shares of the target company, as of the 10th working day from the closure of the tendering period.

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20.

How can a company repurchase its shares or other specified securities?

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21.

As per the SEBI ICDR Regulations, subject to proper compliance with the Act and the Regulations, a public issue or a rights issue may be opened within ________ months from the date of issuance of the observations by SEBI.

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22.

The non-refundable fees payable to SEBI are prescribed in the SEBI (Substantial Acquisition of shares and takeovers SAST) Regulations. For an open offer of above Rs 5000 crore, it is Rs 25 crore plus 0.01 per cent of the portion of the offer size in excess of Rs 5000 crore.

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23.

Every merchant banker shall submit to SEBI complete particulars of any transaction for the acquisition of securities of any body corporate whose issue is being managed by that merchant banker within _______ days from the date of entering into such transaction.

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24.

As per SEBI ICDR Regulations, to make an initial public offer, the issuer company should have net tangible assets of at least _______ in each of the preceding three full years, of which not more than 50% are held in monetary assets.

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25.

For the purpose of granting registration to an applicant, SEBI takes into account the “Criteria for fit and proper person” as given under the ____________.

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26.

As per the SEBI ICDR Regulations, allotment in a Preferential Issue, pursuant to the special resolution, shall be completed within a period of _____ days from the date of passing such resolution.

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27. A Merchant Banker can only act as a legal advisor to an issue management process – State true or false ?

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28.

The criteria for FIT and PROPER person is described in SEBI ( Merchant Banking ) Regulations – State true or false?

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29. The paid-up capital of the applicant (company) to be eligible for listing on BSE and NSE is _______.

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30. If the issuer company itself is a registrar to an issue registered with SEBI, then _______.

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31. As per the listing agreement of BSE and NSE, the minimum paid-up capital and the minimum market capitalization of the issuer should be_______.

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32. In case of a public issue or offer for sale, the Offer Document is called ________.

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33.

As per the rules of SEBI (Certification of Associated Persons in Securities Markets) Regulations, any person who is not the Principal OR who is not over 50 years of age OR who does not have 10 years of relevant experience can get the certificate for the first time by _______.

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34. A Merchant Banker performs which of the following function(s) in the case of a merger?

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35.

As per the SEBI (Substantial Acquisition of shares and takeovers) Regulations, the balance of the escrow account after the transfer of cash to the special escrow account shall be released to the acquirer on the expiry of ________ from the completion of payment of consideration to shareholders who have tendered their shares in acceptance of the open offer.

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36. Which SEBI Regulation applies to delisting of equity shares of a company from all or any of the recognised stock exchanges where such shares are listed?

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37. A public issue can be declared to be closed even if _______ of it is subscribed.

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38. Which Act/Regulation prescribes the general obligations to be followed by Issuers and other intermediaries who are related with the process of issue management?

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39. A specified security may have one or more warrant attached to it. State whether True or False?

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40. Which of the following activities does the merchant banker have to perform in the process of Issue Management?

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41. 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.

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42. Who appoints the accountants and the auditors who help in reviewing and auditing financials and preparing financial statement as per SEBI (ICDR) Regulations for inclusion in the offer Document?

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43. Derivatives in which of the underlying assets are allowed in the Indian Market?

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44.

__________ are the activities performed by a Merchant Banker.
I – Merger and Acquisition;
II – Stock Trading;
III – Printing and Distribution of application forms;
IV – Issue of debt securities.

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45. 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.

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46. The SEBI (Substantial Acquisition of shares and takeovers) Regulations, 2011 ensures greater transparency, fairness, and equitable treatment to all investors. State whether True or False.

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47. 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.

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48. 13. Takeover is the acquisition of substantial _________ for the purpose of seeking management control of the company.

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49. SCORES system of SEBI does not deal with any complaints which fall under the purview of the other regulatory bodies i.e., IRDAI, PFRDA etc. State whether True or False.

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50. 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?

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