MCQs On THE SECURITIES AND EXCHANGE BOARD OF INDIA REGULATIONS Part No - 4

Q.1:- Eligibility of shareholders for availing the exit offer as per chapter Vl-A of SEBI (ICDR), 2009:

• All dissenting shareholder
• Only those dissenting shareholders of the issuer who are holding shares as on the relevant date.
• Only those dissenting shareholders of the issuer who are not holding shares as on the relevant date.
• None

Q.2:- In the Chapter Vl-A of SEBI (ICDR), 2009 provide No issuer shall make a public issue or rights issue of specified securities:

• if the issuer was or also is a promoter, director or person in control of any other company which is debarred from accessing the capital market under any order or directions made by the Board;any of the promoters, directors or persons in control of
• if the issuer, any of its promoters, promoter group or directors or persons in control of the issuer are debarred from accessing the capital market by the Board;
• All of the above.
• public issue of equity securities, if the issuer or any of its promoters or directors is a wilful defaulter;

Q.3:- In the Chapter VI.-A of SEBI (ICDR), 2009 provide No issuer shall make a public issue or rights issue of specified securities: if the issuer of convertible debt instruments:

• It is in default of payment of interest.
• Is in the list of willful defaulters published by the RBI.
• Repayment of principal amount in respect of debt instruments issued by it to the public, if any, for a period of more than 6 months.
• Any of the above.

Q.4:- Condition for applicability of chapter Vl-A on exit offer made to dissenting shareholders by

• The proposal for change in objects or variation in terms of a contract, referred to in the prospectus is dissented by at least ten per cent
• The public issue has opened after April 1,2014
• The amount to be utilized for the objects for which the prospectus was issued is less than seventy five per cent of the amounts raised.
• All of the above

Q.5:- Frequently traded shares means:

• Shares, in which the annual traded turnover on any stock exchange is at least twenty per cent of the total number of shares of such class.
• Shares, in which the annual traded turnover on any stock exchangers at least five per cent of the total number of shares of such class
• Shares, in which the annual traded turnover on any stock exchange is at least ten per cent of the total number ofshares of such class.
• A. Shares, in which the annual traded turnover on any stock exchange is at least twenty-five per cent of the total number of shares of such class.

Q.6:- SEBI (ICDR) Regulations, 2009 prescribes the conditions to be fulfilled for issue of shares. As per the said regulation, an issuer may make an initial public offer, which condition is not specified by SEBI (ICDR) Regulations, 2009

• Total Issue: The aggregate of the proposed issue and all previous issues made in the same financial year in terms of issue size does not exceed 5 times its pre-issue net worth as per audited balance sheet of the preceding financial year.
• Pre-Tax operating profit: It has a minimum average pre-tax operating profit of rupees 5 crore,
• Tangible Assets: Net tangible assets of at least 3 crore rupees in each of preceding 3 full years (of 12 months each), of which not more than 50%are held in monetary assets
• Tangible Assets: Net tangible assets of at least 3 crore rupees in each of preceding 3 full years (of 12 months each), of which not more than 50%are held in monetary assets

Q.7:- 1. In case of preferential issue of warrant, an amount equivalent to at least…….. percent of the consideration determined in terms of regulation 76 shall be paid against each warrant on the date of allotment of warrants and the balance _______percent of the consideration shall be paid at the time of allotment of equity shares pursuant to exercise of option against each such warrant by the warrant holder:

• 10%, 90%
• 75%, 25%
• 25%, 75%
• A. 40%, 60%

Q.8:- The promoters or shareholders having control shall, within a period of…….. working days from the last date of the tendering period, make payment of consideration to the dissenting shareholders who have accepted exit offer:

• Fifteen
• Twenty-one
• Ten
• Seven

Q.9:- For the purpose of Chapter VII of SEBI (ICDR) 2009, Relevant date in case of preferential issue of convertible securities means:

• The date thirty days prior to the date on which the meeting of shareholders is held to consider the proposed preferential issue.
• The date thirty days prior to the date on which the holders of the convertible securities become entitled to apply for the equity shares.
• Either a or b
• None of the above

Q.10:- As per the regulation under SEBI (issue of Capital and Disclosure Requirements) Regulations, 2009 If any applicant fails to pay the call money within the said 12 months (or more, as the case may be), the equity shares on which there are calls in arrears along with the subscription money already paid on such …………

• Shares will be forfeited.
• Money shall be refunded.
• Money will be forfeited.
• Shares shall be issued.

Q.11:- As per the provision of SEBI (ICDR) Regulation 2009, a public issue or rights issue may be opened:

• Within twelve months from the date of issuance of the observations by the Board under regulation 6.
• A Within three months of expiry of the period stipulated in sub-regulation (2) of regulation 6, if the Board has not issued observations.
• Both (a) and (b)
• None of the above

Q.12:- Person/s covered in definition of “connected person” under the SEBI(PROHIBITION OF INSIDER TRADING) REGULATIONS, 2015

• Banker of the company
• Banker of the company
• Any person who is or has during the six months prior to the concerned act been associated with a company, directly or indirectly.
• All of above

Q.13:- Independent director means a non-executive director, other than a nominee director of the listed entity.

• who is or was not a promoter of the listed entity or its holding, subsidiary or associate company
• Who is related to promoters or directors in the listed entity, its holding, subsidiary or associate company?
• Who, in the opinion of the board of directors, is a person of integrity and possesses relevant expertise and experience?
• Who is not less than 21 years of age?

Q.14:- When an insider is allowed to communicate, provide, or access to any unpublished price sensitive information, relating to a company or securities listed or proposed to be listed, to any person including other insiders:

• Mere such communication is for the purpose of performance of duties.
• Where such communication is in furtherance of legitimate purposes.
• Where such communication is for the purpose of discharge of legal obligations.
• All of the above

Q.15:- In case of connected persons, onus to prove for not possessing UPSI lies on

• SEBI
• Connected person Connected person if amount involved is more than INR 10 Lakhs
• Connected person
• None of above