MCQs on SEBI (Issue of Capital and Disclosure (Requirements) Regulations, 2018 part 1

Q.1:- The minimum application amount of an IDR shall be:

• Thirty thousand rupees
• Twenty thousand rupees
• Forty thousand rupees
• Ten thousand rupees

Q.2:- The tenure of the convertible securities of the issuer shall from the date of their allotment:

• not exceed twelve months
• not exceed twenty four months
• not exceed six months
• not exceed eighteen months

Q.3:- For making a rights issue through the fast track route the average market capitalisation of public shareholding of the issuer is :

• two hundred and fifty crore rupees
• at least two hundred and fifty crore rupees
• two hundred crore rupees
• at least two hundred crore rupees

Q.4:- An issuer making a rights issue of convertible debt instruments shall ensure that it has obtained:

• There is no need of credit rating
• Credit rating from at least one credit rating agency
• It is on the discretion of the issuer
• Credit rating from one credit rating agency

Q.5:- When an issuer shall be eligible to make a rights issue of specified securities:

• If the issuer, any of its promoters, promoter group or directors of the issuer are debarred from accessing the capital market by the Board
• If the issuer who were debarred in the past by the Board and the period of debarment is already over as on the date of filing of the draft letter of offer with the Board.
• If any of the promoters or directors of the issuer is a promoter or director of any other company which is debarred from accessing the capital market by the Board.
• If any of its promoters or directors is a fugitive economic offender.

Q.6:- Where the securities are not allotted and/or application monies are not refunded or unblocked within the prescribed period the issuer shall undertake to pay interest at the rate of to the investors:

• Fifteen per cent, per annum
• Six per cent, per annum
• Eighteen per cent, per annum
• Twelve per cent, per annum

Q.7:- The issuer shall stipulate in the offer document the minimum application size in terms of number of specified securities which shall fall within the range of:

• minimum application value of ten thousand rupees to fifteen thousand rupees
• minimum application value of one thousand rupees to five thousand rupees
• minimum application value of five thousand rupees to ten thousand rupees
• at the discretion of the issuer

Q.8:- An initial public offer shall be kept open for at least three working days and not more than ten working days:

• At least three working days
• Three days
• At the discretion of the issuer
• At least three days

Q.9:- If the issue size, excluding the size of offer for sale by selling shareholders, the issuer shall make arrangements for the use of proceeds of the issue to be monitored by a public financial institution or by a scheduled commercial bank named in the offer document as bankers of the issuer:

• exceeds seventy five crore rupees
• exceeds twenty five crore rupees,
• exceeds one hundred crore rupees
• exceeds fifty rupees

Q.10:- The issuer shall accept bids by using

• Only the ASBA facility
• Cash deposit in escrow account
• Cheque deposit in escrow account
• All the options are correct

Q.11:- The issuer shall appoint which are registered with the Board, as lead manager(s) to the issue:

• At least two merchant bankers
• One merchant banker
• One or more merchant bankers
• None of the above

Q.12:- The promoters of the issuer shall old of the (post-issue capital?)

• at least fifteen per cent.
• at least twenty-five per cent.
• at least twenty per cent.
• at least ten per cent.

Q.13:- Only such fully paid-up equity shares may be offered for sale to the public, which have been held by the sellers for prior to the filing of the draft offer document:

• a period of two year
• a period of one year
• a period of at least two year
• a period of at least one year

Q.14:- An issuer making an initial public offer of specified securities shall satisfy the conditions of Chapter II of ICDR Regulations:

• as on the date of registering the offer document with the Registrar of Companies
• as on the date of filing of the draft offer document with the Board
• Both A and B above
• None of the above

Q.15:- “application supported by blocked amount (ASBA)” means:

• An application for subscribing to a public issue or rights issue, along with an authorisation to self­ certified syndicate bank to block the application money in a bank account
• An application for subscribing to a public issue or rights issue, along with a certificate from scheduled bank
• An application for subscribing to a public issue or rights issue, along with a certificate from non-schedule bank
• None of the above

Q.16:- Which section of the Securities and Exchange Board of India Act, 1992 have conferred powers to the SEBI to makes the SEBI(ICDR) Regulations, 2009:

• Section 30
• Section 28
• Section 31
• Section 29

Q.17:- An issuer shall be eligible to make an initial public offer only if it has net tangible assets of______:

• at least three crore rupees
• at least one crore rupees
• at least four crore rupees
• at least two crore rupees

Q.18:- An issuer making an initial public offer of convertible debt instruments shall comply:

• Appoint at least one debenture trustee
• Appoint at least one debenture trustee
• Obtain credit rating from at least one credit rating agency
• All of the above

Q.19:- The entire pre-issue capital held by persons other than the promoters shall be locked-in for a period of from the date of allotment in the initial public offer:

• Three years
• Two years
• One year
• None of the above

Q.20:- The cap on the price band, and the coupon rate in case of convertible debt instruments, shall be:

• Equal to the floor price
• Less than the floor price
• More than or equal to one hundred and twenty per cent, of the floor price
• Less than or equal to one hundred and twenty per cent, of the floor price

Q.21:- In case of a book built issue, the price of the specified securities offered to the anchor investors:

• Shall be more than the price offered to other applicants
• Shall not be lower than the price offered to other applicants
• Shall be lower than the price offered to other applicants
• None of the above

Q.22:- If the issuer makes a public issue through the book building process, the issue shall be underwritten by:

• Scheduled Commercial Banks
• Lead manager(s) and syndicate member(s)
• Term Lending Institutions
• None of the above

Q.23:- The minimum subscription to be received in the issue shall be .of the offer through the offer document, except in case of an offer for sale of specified securities:

• Ninety five per cent
• Ninety per cent
• At least ninety five per cent
• At least ninety per cent

Q.24:- If the issuer proposes to receive subscription monies in calls, it shall ensure that the outstanding subscription money is called from the date of allotment:

• within nine months
• within twelve months
• within three months
• within six months

Q.25:- The value of specified securities allotted to any person, except in case of employees, shall for retail investors:

• not exceed two lakhs rupees
• not exceed four lakhs rupees
• not exceed one lakhs rupees
• not exceed three lakhs rupees

Q.26:- The lead manager(s) shall submit a final post-issue report as specified in Part A of ScheduleXVII, along with a due diligence certificate as per the format specified in Form Fof Schedule V, of the date of finalization of basis of allotment or within seven days of refund of money in case of failure of issue:

• within seven days
• within three days
• within seven working days
• within three working days

Q.27:- An issuer shall be eligible to issue warrants which shall ______from their date of allotment in the rights issue:

• not exceed eighteen months
• not exceed six months
• not exceed twenty four months
• not exceed twelve months

Q.28:- The promoters shall contribute in the public issue as either to the extent of of the proposed issue size:

• Twenty per cent
• Ten per cent
• Twenty five per cent
• Fifteen per cent

Q.29:- A listed issuer making a preferential issue of specified securities shall ensure that:

• all of the above
• all equity shares allotted by way of preferential issue shall be made fully paid up at the time of the allotment
• a special resolution has been passed by its shareholder
• all of the above

Q.30:- The tenure of the convertible or exchangeable eligible securities issued through qualified institutions placement:

• Shall not exceed 30 months from the date of allotment.
• Shall not exceed 60 months from the date of allotment.
• Shall not exceed 15 months from the date of allotment
• Shall not exceed 45 months from the date of allotment.

Q.31:- The floor price or the final price of IDR:

• Shall equal to the face value of the IDRs.
• May be less than the face value of the IDRs.
• Shall not be less than the face value of the IDRs.
• Shall less than the face value of the IDRs.

Q.32:- "relevant date" in case of preferential issue of equity shares, means the on which the meeting of shareholders is held to consider the proposed preferential issue:

• date thirty days prior to the date
• date ten days prior to the date
• date forty days prior to the date
• date twenty days prior to the date

Q.33:- Allotment pursuant to the special resolution shall be completed within a period of from the date of passing of such resolution:

• 20 days
• 10 days
• 30 days
• 15 days

Q.34:- The eligible securities allotted under the qualified institutions placement shall not be sold by the allottee for a period of from the date of allotment, except on a recognised stock exchange:

• Three year
• One year
• Four year
• Two year

Q.35:- The cap on the price band, and the coupon rate in case of convertible debt instruments, shall be:

• Less than or equal to 120% of the floor price
• Less than or equal to 100% of the floor price
• Less than or equal to 130% of the floor price
• Less than or equal to 110% of the floor price

Q.36:- An issuer shall be eligible to make a further public offer of convertible debt instruments if:

• it has not defaulted in payment of interest or repayment of principal amount in respect of debt instruments issued by it to the public, if any, for a period of more than six months.
• its equity shares are already listed
• Both A and B are correct
• None of the above

Q.37:- For making a rights issue through the fast track route the annualized delivery­ based trading turnover of the equity shares during six calendar months immediately preceding the month of the reference date has been of the annualized trading turnover of equity shares during such six months4 period:

• at least ten per cent.
• ten per cent.
• more than ten per cent.
• none of the above

Q.38:- The issue price __________of the specified securities:

• Shall equal to the face value
• May be less than the face value
• Shall be more than the face value
• Shall not be less than the face value

Q.39:- The issuer shall ensure that all transactions in securities by the promoter and promoter group between the date of filing of the draft offer document or offer document, as the case may be, and the date of closure of the issue shall be reported to the stock exchange(s), of such transactions:

• after twenty four hours
• within twelve four hours
• within twenty four hours
• after twelve four hours

Q.40:- The issuer shall not make an allotment pursuant to a public issue if the number of prospective allottees is:

• less than one thousand.
• less than one hundred
• less than five thousand.
• less than five hundred

Q.41:- The minimum sum payable on application per specified security shall be:

• at least twenty five per cent, of the issue price
• at least fifteen per cent, of the issue price
• at least thirty per cent, of the issue price
• at least twenty per cent, of the issue price

Q.42:- An initial public offer shall be kept open for at least three working days and:

• not more than seven working days
• not more than three working days
• not more than ten working days
• not more than five working days

Q.43:- A public issue may be opened from the date of issuance of the observations by the Board:

• within nine months
• within three months
• within twelve months
• within six months

Q.44:- The issuer shall, before the opening of the subscription list, deposit with the designated stock exchange, an amount calculated at the rate of of the issue size available for subscription to the public:

• Three per cent.
• One per cent.
• Five per cent.
• Two per cent.

Q.45:- The floor price or the final price shall:

• Not be less than the face value of the specified securities
• Be less than the face value of the specified securities
• More than the face value of the specified securities
• None of the above

Q.46:- Promoters’ holding in excess of minimum promoters’ contribution shall be locked-in for a period of from the date of allotment in the initial public offer:

• Three years
• One year
• Two years
• None of the above

Q.47:- An issuer shall be eligible to issue warrants in an initial public offer subject to condition that the tenure of such warrants from the date of their allotment in the initial public offer:

• shall not exceed eighteen months
• shall not exceed six months
• shall not exceed twenty four months
• shall not exceed twelve months

Q.48:- An issuer shall be eligible to make an initial public offer only if it has a net worth of in each of the preceding three full years:

• at least three crore rupees
• at least one crore rupees
• at least four crore rupees
• at least two crore rupees

Q.49:- “green shoe option” means an option of allotting equity shares the equity shares offered in the public issue as a post-listing price stabilizing mechanism:

• equal to
• less than
• in excess of
• None of the above

Q.50:- “book building” means:

• A process undertaken to elicit demand and to assess the price for determination of the quantum or value or coupon of specified securities
• A process undertaken to fix price based on demand of shares in the market.
• A process through which the public is able to determine the price os shares.
• None of the above