MCQs On THE SECURITIES AND EXCHANGE BOARD OF INDIA REGULATIONS Part No - 1

Q.1:- In case of price band, the cap on the price band shall be less than or equal to .................... of the floor price:

• One hundred and ten per cent
• One hundred and fifty per cent
• One hundred and twenty per cent
• One hundred and twenty five per cent

Q.2:- Unpublished Price Sensitive Information(UPSI) can be in connection with

• Financial results
• Dividends
• delisting, disposals and expansion of business
• All of above

Q.3:- As per SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, No acquirer shall acquire shares or voting rights in a target company which taken together with shares or voting rights, if any, held by him and by persons acting in concert with him in such target company, entitle them to exercise ____ of the voting rights in such target company unless the acquirer makes a public announcement of an open offer for acquiring shares of such target company:

• Twenty per cent or more
• Twenty-five per cent or more
• Fifty per cent or m ore
• Ten percent or more

Q.4:- The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 came into force on:

• 15th June 2009
• 20th June 2009
• 10th June 2009
• 30th June 2009

Q.5:- Employee stock option scheme or ESOS means:

• A scheme under which a company grants SAR to employees.
• A scheme under which a company grants shares to existing shareholders at predetermined price.
• A scheme under which a company grants employee stock option directly or through a trust.
• A scheme under which a company offers shares to employees, as part of public issue or otherwise, or through a trust;

Q.6:- Within how much days all the shareholders whose equity shares are .verified to be genuine shall be paid the final price stated in the public announcement:

• Within ten working days from the closure of the offer
• Within Fifteen working days from the closure of the offer
• Within seven working days from the closure of the offer
• Within five working days from the closure of the offer

Q.7:- As per SEBI (Prohibition of Insider Trading), Regulations 2015, Insider means:

• Any person who is a connected person
• Any person who is in possession of or having access to unpublished price sensitive information.
• None of the above
• Both a and b

Q.8:- Promoters' holding securities in excess of minimum promoters' contribution shall be locked-in for a period of:

• Two Years
• One Year
• Three Years
• Five Years

Q.9:- As per the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, what shall be the minimum face value per equity share, where the issue price is less than five hundred rupees?

• Two Rupees
• Five Rupees
• One Rupee
• Ten Rupees

Q.10:- In case of exit offer to dissenting shareholders, the tendering period shall start not later than……… working days from the passing of the special resolution and shall remain open for…….. working days:

• Ten, ten
• Seven, Seven
• Seven, Fifteen
• Seven, ten

Q.11:- One of the Pre-Requisites for a Company to be eligible to opt for IPO with respect to SEBI is that the company should have a……… of atleast three crore rupees in each, of the preceding three full years (of twelve months each), of which not more than fifty percent are held in monetary assets.

• Net assets
• Net tangible assets
• Net intangible assets
• None of the above

Q.12:- Minimum Promoter Contribution shall be locked-in for ..........years from commencement of commercial production or date of allotment, whichever is later

• 7
• 3
• 4
• 5

Q.13:- The issuer shall not make preferential issue of specified securities to any person who has sold any equity shares of the issuer during the _______preceding the relevant date:

• Three months
• One year
• Six months
• Nine months

Q.14:- As per the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, what shall be the face value per equity share, where the issue price is five hundred rupees or more:

• Ten Rupees
• Two Rupees
• One Rupee
• Five Rupees

Q.15:- Disclosure made by insiders under the SEBI (PROHIBITION OF INSIDER TRADING) REGULATIONS, 2015 should be maintained by company for a period not less than

• 2 Years
• 8 Years
• 5 Years
• 3 Years

Q.16:- Who can issue a certificate which the issuer is required to be placed before the general meeting of the shareholders, considering the proposed preferential issue, certifying that the issue is being made in accordance with the requirements of SEBI (ISDR), 2009?

• Merchant Banker
• Company Secretary in Practice
• Statutory Auditor of the issuer
• Chartered Accountant in practice

Q.17:- Trading plan formulated by insider shall entail trading for a period not less than

• 6 months
• 12 months
• 9 months
• 3 months

Q.18:- As per SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, the acquirer shall create escrow account towards security for performance of his obligations under these regulations, and deposit in escrow account an amount equal to _____ of the consideration of first five hundred crore rupees and an additional amount equal, to _____of the balance consideration:

• Twenty-five per cent, ten per cent
• Twenty per cent, five percent
• Five per cent, ten per cent
• Twenty-five per cent, five per cent

Q.19:- As per the chapter IV of the SEBI (Delisting of Equity Shares) Regulations, 2009, acquirers or promoters of the company shall within…… from the date of receipt of in principle approval for delisting from the recognized stockexchange, make a public announcement:

• Seven working days
• Five working days
• One working day
• Three working days

Q.20:- As per SEBI (Share Based Employee Benefits) Regulations, 2014, No scheme shall be offered to employees of a company unless the ____ of the company approve it by passing a……. in the general meeting:

• Shareholders, special resolution
• Board of directors, ordinary resolution
• Board of directors, special resolution
• Shareholders, Ordinary resolution

Q.21:- Rising India Limited granted an ESOP to its employees whose current market price of the share is Rs 1000 which can be exercised after 5 years for Rs 700. In this case what is the Intrinsic value of options:

• 300
• 700
• 1000
• 1700

Q.22:- Who is the approving authority for trading plan?

• SEBI
• Compliance officer
• Share holder
• Board of. Director

Q.23:- As per SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, the offer is required to be kept open for …………….

• 30 working day
• 15 working day
• 60 working day
• 10 working day

Q.24:- Competitive offer is an offer made by a person, other than the acquirer who has made the first public announcement. A competitive offer shall be made within ………of the date of the Detailed Public Statement (DPS) made by the acquirer who has made the first public announcement(PA).

• 90 working day
• 60 working day
• 15 working day
• 30 working day

Q.25:- Which of the following Act has been repealed by SEBI (issue of Capital and Disclosure Requirements) Regulations, 2009?

• SEBI (Disclosure and Investor Protection) Guideline 1992
• SEBI (Disclosure and Investor Protection) Guideline 2001
• SEBI (Disclosure and. Investor Protection) Guideline 2004
• SEBI (Disclosure and Investor Protection) Guideline 2000

Q.26:- Lock in period specified in case of preferential issue to persons other than promoter and promoter group:

• Two year
• One year
• Three year
• Five year

Q.27:- Chapter VI-A of SEBI (ICDR), 2009 deals with:

• Conditions and manner of providing exit opportunity to dissenting shareholders
• Manner of disclosures in the offer documents
• Public issue and rights issue
• General obligations of issuer

Q.28:- An issuer not satisfying the conditions for a Company to be eligible to opt for IPO with respect to SEBI, may make an Initial Public Offer if the issue is made through the book-building process and the is surrender takes to allot, ............... of the net offer to public, to qualified institutional buyers and to refund full subscription money if it fails to make the said minimum allotment to qualified institutional buyers.

• not exceeding 75%
• at least 75%
• at least 60%
• not exceeding 60%

Q.29:- The expression 'preferential allotment' means an issue of shares or other securities, by a company to any select person or groups of person on a preferential basis and include shares or other securities offered through a public issue, employee stock option scheme, or an issue of sweat equities or bonus shares or depository receipts issued in a country outside India or foreignsecurities.

• False
• True
• None of the above
• May be may not be

Q.30:- This monitoring agency is required to submit its report on a …………. basis to the issuer in the format specified in Schedule IX of the ICDR Regulations, till at least ………of the proceeds of the issue (excluding the proceeds under offer for sale and amount raised for general corporate purposes) have been fully utilized.

• Monthly; 90%
• Monthly ; 95%
• Quarterly; 90%
• Quarterly; 95%

Q.31:- The tenure of the convertible securities of the issuer shall not exceed……… months from the date of their allotment

• Eighteen
• Twelve
• Twenty-four
• Thirty-six

Q.32:- No insider shall…… to any unpublished price sensitive information, relating to a company or securities listed or proposed to be listed, to any person including other insiders except where such communication is in furtherance of legitimate purposes, performance of duties or discharge of legal obligations:

• Communicate
• Provide
• Allow access
• All of the above

Q.33:- As per SEBI regulations valuation is not required

• Change in shareholding pattern of listed entity.
• Change in shareholding pattern of unlisted entity.
• Not change in shareholding pattern of unlisted entity.
• Not change in shareholding pattern of listed entity.

Q.34:- Whether the SEBI (Share Based Employee Benefits) Regulations, 2014 prescribes said lock-in period of one year from the date of allotment is applicable to the Trust, if an Employee Stock Purchase Scheme ( ESPS) is implemented through Trust route?

• Yes. The lock-in requirement is not applicable at the level of employee as well as at the level of Trust.
• Yes, the lock-in requirement is not applicable at the level of employee and applies at the level of Trust.
• No. The lock-in requirement is applicable at the level of employee and not at the level of Trust.
• No lock in period on Employees or Trust.

Q.35:- What is the minimum subscription to be received in an issue?

• Ninety Percent
• Ninety-five Percent
• Seventy-five percent
• Fifty percent

Q.36:- Trading plan presented to compliance officer by insider is

• Irrevocable
• Revocable
• To be notified to stock exchange
• (B) or (C) or both

Q.37:- Trading plan presented to compliance officer by insider is

• Irrevocable
• Revocable
• To be notified to stock exchange
• (B) or (C) or both

Q.38:- A voluntary open offer under Regulation 6 SEBI (SAST) REGULATIONS, 2011, is an offer made by a person who himself or through Persons acting in concert , if any, holds ………. or more shares or voting rights in the target company but less than the maximum permissible non-public shareholding limit.

• Twenty per cent
• Twenty five per cent
• Twenty six per cent
• Ten per cent

Q.39:- The option, SAR, or any other benefit granted to the employee shall not be:

• Transferred
• Pledged
• Mortgaged
• All of the above

Q.40:- Time period of trading plan is:

• At least 4 months
• At least 12 months
• At least 8 months
• At least 6 months

Q.41:- No issuer shall make, a public issue or a rights issue, where the aggregate value of the specified securities offered is ______ lakh rupees or more, unless a draft offer document, along with fees as specified in Schedule IV, has been filed with the Board through the lead merchant banker:

• Fifty
• Twenty-five
• Seventy-five
• Ten

Q.42:- A listed issuer may make a preferential issue of specified securities, if:

• A special resolution has been passed by its shareholders.
• All the equity shares, if any, held by the proposed allottees in the issuer are in dematerialized form.
• The issuer has obtained the Permanent Account Number of the proposed allottees.
• All of the above

Q.43:- A listed issuer company cannot make any rights issue of securities, where the aggregate value of such securities, including premium, if any exceeds 50 lakhs unless a ………of offer has been filed with the board, through a merchant Banker, at least 30 days prior to the filing of the letter of offer with the designated Stock Exchange.

• Draft Letter
• Prospectus
• None of the above
• (a)or(b)

Q.44:- As per of the SEBI (ICDR) Regulations, 2009, In a public issue, the specified securities held by promoters shall be locked-in for the period stipulated that Minimum promoters’ contribution shall be locked-in for a period of

• Eighteen (18) months from the date of commencement of commercial production
• Date of allotment in the public issue
• (A) or (B) whichever is earlier
• (A) or (B) whichever is later

Q.45:- Minimum Number of Allottee: the minimum number of allottees for each placement of eligible securities that has to be made under QIPs shall not be less than ……., where the issue size is less than or equal to Rs. 250 crores

• 5
• 4
• 2
• 3

Q.46:- Schedule A of SEBI (Prohibition of Insider Trading), Regulations 2015 set out:

• Principles of Fair Disclosure for purposes of Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information.
• Minimum Standards for Code of Conduct to Regulate, Monitor and Report Trading by Insiders.
• Content of trading plan
• List of insiders

Q.47:- In cases of compulsory Delisting Regulations include: A……..timeline from the date of delisting for the acquirer/promoter to acquire the delisted equity shares from the public shareholders by paying them the value determined by the valuer.

• Twelve Month
• Three month
• One month
• Six month

Q.48:- A minimum vesting period of one year is prescriber in case of an Employee Stock Option Scheme (ESOS). Further, the company has been given the ………lock-in-period for shares issued pursuant to exercise of option.

• One Year
• discretion to determine the
• Three Year
• Two year

Q.49:- Which of the following document, the issuer shall submit at the time of filing draft offer document with the recognized stock exchange where the specified securities arc proposed to be listed?

• Permanent Account Number of its promoters
• Bank account number of its promoters
• passport number of its promoters
• All of the above

Q.50:- Before opening of subscription list, the issuer should in case of a public issue or a rights issue (other than a fast track issue of specified securities), place a deposit amounting to one per cent of the amount of securities offered for subscription to the public with the stock exchanges in the manner specified by SEBI and/or the stock exchange(s).

• Five per cent
• Two per cent
• Ten per cent
• one per cent