MCQs on SEBI (Issue of Capital and Disclosure (Requirements) Regulations, 2018 part-2

Q.1:- "anchor investor" means a qualified institutional buyer who makes* an application for a value of in a public issue on the main board made through the book building process:

• at least five crore rupees
• at least one crore rupees
• at least ten crore rupees
• at least two crore rupees

Q.2:- composite issue” means:

• an issue of specified securities by a listed issuer on public-cum-private placement basis simultaneously
• an issue of specified securities by a listed issuer on public-cum-rights fl basis simultaneously
• an issue of specified securities by a listed issuer on public-cum- preferential allotment basis simultaneously
• an issue of specified securities by a listed issuer on bonus -cum-rights basis simultaneously

Q.3:- In which circumstance, an issuer shall be eligible to make an initial public offer:

• if the issuer or any of its promoters or directors is a wilful defaulter.
• if the issuer, any of its promoters, promoter group or directors or selling shareholders are debarred from accessing the capital market by the Board
• if any of its promoters or directors is not a fugitive economic offender.
• 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

Q.4:- Can an issuer make an initial publicoffer of convertible debt instruments even without making a prior public issue of its equity shares and listing thereof:

• Yes, provided it is not in default of 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
• Yes, it can issue and there is no condition
• No, it cannot issue
• None of the above

Q.5:- The draft offer document filed with the Board shall be made public for comments, if any, for a period of:

• At least twenty one days from the date of filing
• At least seven days from the date of filing
• At least twenty eight days from the date of filing
• At least fourteen days from the date of filing

Q.6:- In case of a revision in the price band, the issuer shall extend the bidding (issue) period disclosed in the red herring prospectus:

• for a minimum period of three working days
• for a minimum period of one working days
• for a minimum period of two working days
• None of the above

Q.7:- In case the issuer fails to obtain listing or trading permission from the stock exchanges where the specified securities were to be listed, it shall refund through verifiable means the entire monies received of receipt of intimation from stock exchanges rejecting the application for listing of specified securities:

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

Q.8:- The amount for general corporate purposes, as mentioned in objects of the issue in the draft letter of offer and the letter of offer:

• Shall not exceed twenty five per cent, of the amount raised by the issuer
• May exceed twenty five per cent, of the amount raised by the issuer
• Shall not exceed twenty per cent, of the amount raised by the issuer
• None of the above

Q.9:- For making a rights issue through the fast track route the equity shares of the issuer have been listed on any stock exchange for a period of immediately preceding the reference date:

• at least three years
• at least one year
• three years
• at least two years

Q.10:- The requirements of minimum promoters’ contribution shall not apply in case of an issuer:

• Which does not have any identifiable promoter
• Which have any identifiable promoter
• Which is well known promoter
• None of the above

Q.11:- The promoters’ holding in excess of minimum promoters’ contribution shall be locked-in for a period of:

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

Q.12:- The equity shares issued on a preferential basis pursuant to any resolution of stressed assets under a framework specified by the Reserve Bank of India or a resolution plan approved by the National Company Law Tribunal under the Insolvency and Bankruptcy Code 2016, shall be locked- in for from the trading approval:

• a period of one year
• a period of four years
• a period of three years
• a period of two years