Equity Share & Share Capital – Practice Test 2

This practice test focuses on issue of shares, allotment, calls, forfeiture, transfer, and related capital provisions under company law.

Equity Share & Share Capital- Practice Test 2

1 / 50

The provisions of SEBI(LODR) Regulation relating to the Risk Management Committee shall be applicable to

Top 300 listed entities, determined on the basis of market capitalisation

Top 1000 listed entities, determined on the basis of market capitalisation

Top 100 listed entities, determined on the basis of market capitalisation

Top 500 listed entities, determined on the basis of market capitalisation

2 / 50

The compliance certificate shall be furnished to the SEBI by

The Chief Executive Officer and any of the director authorised by the Board of Directors

The Chief Executive Officer and Chief Financial Officer

The Chief Financial Officer only

The Chief Executive Officer and Company Secretary

3 / 50

Each rating obtained by the listed entity with respect to non-convertible debt securities shall be received

At least once in eighteen month by a credit rating agency registered by the Board

At least once in a half year by a credit rating agency registered by the Board

At least once in twenty four months by a credit rating agency registered by the Board

At least once a year by a credit rating agency registered by the Board

4 / 50

A transaction with a related party shall be considered material if the transaction(s) to be entered into individually or taken together with previous transactions during a financial statements of the listed entity

Exceeds 10% of the annual consolidated turnover of the listed entity

Exceeds 20% of the annual consolidated turnover of the listed entity

Exceeds 5% of the annual consolidated turnover of the listed entity

Exceeds 15% of the annual consolidated turnover of the listed entity

5 / 50

The listed entity shall submit a compliance certificate to the exchange,________, certifying compliance that all activities in relation to share transfer facility are maintained either in house or by Registrar to an issue and share transfer agent registered with the Board

Within 45 days from the end of financial year

Within 15 days from the end of financial year

Within 60 days from the end of financial year

Within 30 days from the end of financial year

6 / 50

Number of allottees in the initial public offer shall at least be

150

200

100

7 / 50

The allocation in the net offer category to non-institutional investors shall be not less than

25%

15%

20%

30%

8 / 50

The minimum offer size shall be

5 crore rupees

10 crore rupees

7 crore rupees

15 crore rupees

9 / 50

The allocation in the net offer category to retail individual investors shall be not less than

30%

40%

25%

35%

10 / 50

The allocation in the net offer category to qualified institutional buyers shall be not more than

50%

40%

55%

45%

11 / 50

A bonus issue, once announced

Shall not be withdrawn

Can be withdrawn

Can be withdrawn with the approval of the shareholders

None of the above

12 / 50

The minimum trading lot on the stock exchange shall be

3 lakh rupees

1 lakh rupees

4 lakh rupees

2 lakh rupees

13 / 50

The issue shall be opened after at least _____ from the date of filing the offer document with the Registrar of Companies

5 working days

3 working days

6 working days

4 working days

14 / 50

Subject to the compliance with the provisions of the Companies Act, 2013, a public issue may be opened _____ from the date of issuance of the observations by the Board under regulation 6

Within 9 months

Within 3 months

Within 12 months

Within 6 months

15 / 50

The value of specified securities allotted to retail individual investors shall

Not exceed one lakh rupees

Exceed one lakh rupees

Not exceed two lakh rupees

Exceed two lakh rupees

16 / 50

During the period the issue is open for subscription, advertisement that the issue has been fully subscribed

It depends on the issuer company

Mat be release, if permitted by the SEBI

May be release

Should not be released

17 / 50

An issuer shall be eligible to issue warrants which shall ____ from their date of allotment in the rights issue

Not exceed 18 months

Not exceed 6 months

Not exceed 24 months

Not exceed 12 months

18 / 50

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 Leading Institutions

None of the above

19 / 50

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

20 / 50

A bonus issue shall be NOT made out of

Securities premium account

Reserves created by revaluation of fixed assets

Free reserves

Capital redemption reserve account

21 / 50

The minimum application size shall be

Two lakh rupees and in multiples thereof

One lakh rupees and in multiples thereof

One lakh fifty thousand rupees and in multiples thereof

Two lakh and fifty thousand rupees and in multiples thereof

22 / 50

The promoters of the issuer shall held at least ____ of the post-issue capital

25%

35%

30%

20%

23 / 50

The responsibility of the lead manager(s) shall

It shall continue for any issue related matter thereafter

Cease after the closure of the issue process

Continue until completion of the issue process

Only (A) and (C) above

24 / 50

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

3 years

1 year

2 years

None of the above

25 / 50

In connection with the issue of securities, what is NOT permissible

Fee for services relating to the issue

Commission for services relation to the issue

Incentive

None of the above

26 / 50

An initial public offer of IDRs shall be kept open for at least three working days and

Not more than 9 working days

Not more than 5 working days

Not more than 10 working days

Not more than 7 working days

27 / 50

The minimum application amount of an IDR shall be

40000 rupees

10000 rupees

30000 rupees

20000 rupees

28 / 50

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

29 / 50

The issuer shall accept bids using

Through ASBA facility

Through deposit of Cheque

Through Stock invest

Through deposit of cash

30 / 50

The issuer 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

31 / 50

The issuer shall accept bids by using

Cash deposit in escrow account

Only the ASBA facility

Cheque deposit in escrow account

All the options are correct

32 / 50

The issuer shall appoint _____, which are registered with the Board, an lead manager(s) to the issue

One or more merchant bankers

One merchant banker

At least two merchant bankers

None of the above

33 / 50

The promoters of the issuer shall held ______ of the post-issue capital

At least 20%

At least 10%

At least 15%

At least 25%

34 / 50

The issuer shall not make an allotment pursuant to a public issue if the number of prospective allottees is

Less than 1000

Less than 100

Less than 500

Less than 5000

35 / 50

An initial public offer shall be kept open for at least three working days and

Not more than 7 working days

Not more than 10 working days

Not more than 5 working days

Not more than 3 working days

36 / 50

The promoters shall contribute in the public issue as either to the extent of _____ of the proposed issue size

10%

20%

15%

25%

37 / 50

The lead manager(s) shall submit a final post-issue report along with a due diligence certificate _____ of the date of finalisation of basis of allotment

Within 5 days

Within 9 days

Within 3 days

Within 7 days

38 / 50

In case of oversubscription, an allotment of not more than _______ of the net offer to public may be made for the purpose of making allotment in minimum lots

39 / 50

The issuer shall, before the opening of subscription list, deposit with the designated stock exchange, an amount calculated at the rate of ______ of the issue sixe available for subscription to the public

40 / 50

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

3 years

1 year

4 years

2 years

41 / 50

The cap on the price band, and the coupon rate in case of convertible debt instruments, shall be

Less than or equal to 130% of the floor price

Less than or equal to 110% of the floor price

Less than or equal to 100% of the floor price

Less than or equal to 120% of the floor price

42 / 50

An issuer making an initial public offer of convertible debt instruments shall comply

Create a debenture redemption reserve

Obtain credit rating from at least one credit rating agency

Appoint at least one debenture trustee

All of the above

43 / 50

For making a rights issue through the fast track route the average market capitalisation of public shareholding of the issuer is

At least 200 crore rupees

200 crore rupees

At least 200 and 50 crore rupees

200 and 50 crore rupees

44 / 50

The value of specified securities allotted to any person, except in case of employees, shall _____ for retail investors

Not exceed 2 lakhs rupees

Not exceed 4 lakhs rupees

Not exceed 1 lakh rupees

Not exceed 3 lakhs rupees

45 / 50

An issuer making a rights issue of convertible debt instruments shall ensures that it has obtained

There is no need of credit rating

Credit rating from one credit agency

It is on the discretion of the issuer

Credit rating from at least one credit rating agency

46 / 50

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 12 months

Within 3 months

Within 9 months

Within 6 months

47 / 50

A public issue may be opened ____ from the date of issuance of the observations by the Board

Within 9 months

Within 3 months

Within 12 months

Within 6 months

48 / 50

The cap on the price band, and the coupon rate in case of convertible debt instruments, shall be

Less than or equal to one hundred and twenty per cent of the floor price

Less than the floor price

More than or equal to one hundred and twenty per cent of the floor price

Equal to the floor price

49 / 50

The issuer ____ obtain grading for its initial public offer from one or more credit rating agencies registered with the Board

Shall

May

50 / 50

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

2 years

6 years

3 years

1 year

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