Merchant Banking Certification Free Demo Test 6

Explanation:

The applicant should have in his employment minimum of TWO persons who have the experience to conduct the business of merchant banker. The applicant should have in his employment minimum of TWO persons who have the experience to conduct the business of merchant banker.

Explanation:

Application Supported by Blocked Amount (ASBA) is an application containing an authorization to block the application money in the bank account, for subscribing to an issue. If an investor is applying through ASBA, his application money shall be debited from the bank account only if his/her application is selected for allotment after the basis of allotment is finalized, or the issue is withdrawn/failed. Under ASBA facility, investors can apply in any public/ rights issues by using their bank account.

Explanation:

Explanation:

Application Supported by Blocked Amount (ASBA) is an application containing an authorization to block the application money in the bank account, for subscribing to an issue. If an investor is applying through ASBA, his application money shall be debited from the bank account only if his/her application is selected for allotment after the basis of allotment is finalized, or the issue is withdrawn/failed. Under ASBA facility, investors can apply in any public/ rights issues by using their bank account.

Explanation:

The offer price may be paid in – a) cash; b) by issue, exchange or transfer of listed shares in the equity share capital of the acquirer or of any person acting in concert; c) by issue, exchange or transfer of listed secured debt instruments issued by the acquirer or any person acting in concert with a rating not inferior to investment grade as rated by a SEBI registered credit rating agency; d) by issue, exchange or transfer of convertible debt securities entitling the holder thereof to acquire listed share in the equity share capital of the acquirer or of any person acting in concert; or e) a combination of payment mode as mentioned in points (a), (b), (c) and (d).

Explanation:

A daily statement has to be sent by the designated controlling branch of the bankers to the issue to the registrar to an issue. This statement indicates the number of applications received on that date from the investors investing in the issue of the issuer company and the amount of application money received. The daily reporting requirement helps maintain transparency and allows timely tracking of the subscription status of the issue. It ensures that accurate and up-to-date information is available throughout the duration of the issue, allowing relevant parties to make informed decisions based on the current state of the subscription.

Explanation:

Regulation 21A of the SEBI Merchant Banking regulation requires that a merchant banker shall not be lead manager or associated with any activity undertaken under any regulations made by SEBI, if he is a promoter or a director or an associate of the issuer of securities.

Explanation:

Offer Document is called “Prospectus” in case of a public issue or offer for sale and “Letter of Offer” in case of a rights issue.

Explanation:

In case of issue of Debt Securities, issuers are allowed to retain over-subscription money upto a maximum of 100% of the base issue size. In case of issuers filing a shelf prospectus, they can retain oversubscription upto the rated size as specified in their shelf prospectus.

Explanation:

As per SEBI ICDR Regulations – The merchant banker related to the post-issue activities shall ensure that advertisements giving details relating to over subscription, basis of allotment, etc. are released within ten days from the date of completion of the various activities in atleast one English national daily newspaper and one Hindi national daily newspaper with wide circulation and one regional language daily newspaper with wide circulation at a place where the issuer company has its registered office.