Merchant Banking Certification Free Demo Test 8

Explanation:

Explanation:

In a Fixed price issue, there is an Offer Document and not a Red herring prospectus. Red herring prospectus is an offer document used in case of a Book built public issue. It contains all the relevant details except that of price or number of shares being offered. It is filed with RoC before the issue opens. The issuer may mention a price or a price band in the offer document (in case of a fixed price issue) and a floor price or a price band in the red herring prospectus (in case of a book built issue) and determine the price at a later date before registering the prospectus with the Registrar of Companies.

Explanation:

The two main activities carried on by a Category 1 Merchant Banker are : 1. to carry on any activity of the issue management, which will, inter alia, consist of preparation of prospectus and other information relating to the issue, determining financial structure, tie up of financiers and final allotment and refund of the subscriptions; and 2. to act as adviser, consultant, manager, underwriter, portfolio manager

Explanation:

In the book built method, price band indicates the floor price which is the minimum price at which the bid can be made and the cap which is the upper limit of the price at which the bid can be made. The cap cannot be more than 20% of the floor price. 20% of Rs 1000 = 200. So the cap cannot exceed 1000 + 200 = Rs. 1200.

Explanation:

In case of an initial public offer, the entire pre-issue capital held by persons other than the promoters shall be locked-in for a period of one year from the date of allotment in the initial public offer.

Explanation:

However, based on the options provided, the most common minimum market capitalization requirement for listing on major stock exchanges is Rs 25 crores. Please note that this information may change over time, and it’s recommended to verify the latest listing requirements from the relevant stock exchange or regulatory authority.

Explanation:

It shall be the responsibility of the promoter and the merchant banker to ensure compliance with the provisions as stated by SEBI in its regulations.

Explanation:

Explanation:

Explanation:

Relisting of voluntarily delisted stocks: Such shares will have to wait five years from their delisting date to get relisted again. Compulsory delisting: If a company has been delisted compulsorily, they will have to wait for 10 years before they can be listed again on the exchanges