IPO & FOREX Quiz
Questions and Answers
- 1.
Which are the IPO rating agencies operating in India?
Explanation
The correct answer is ICRA, CRISIL, CARE, FITCH INDIA, BRICKWORK. These are the IPO rating agencies operating in India.Rate this question:
- 2.
Who the BRLM was for recently issued Bajaj Corp Ltd. IPO?
- A.
A. Kotak Mahindra Capital Co. Ltd
- B.
B. SBI Capital
- C.
C. JP Morgan
- D.
D. KEYNOTE CORPORATE SERVICES LTD.
Correct Answer
A. A. Kotak Mahindra Capital Co. LtdExplanation
Kotak Mahindra Capital Co. Ltd was the Book Running Lead Manager (BRLM) for the recently issued Bajaj Corp Ltd. IPO. The BRLM is responsible for managing the entire IPO process, including underwriting the issue, marketing it to potential investors, and determining the offer price. They play a crucial role in ensuring the success of the IPO and maximizing the proceeds for the company going public.Rate this question:
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- 3.
1. What was the price range for the only MFI IPO hits the Indian capital market recently?
Correct Answer
Rs 860 to Rs 985
860 to 985
Rs 860 - Rs 985
860 - 985Explanation
The correct answer is "Rs 860 to Rs 985". This answer provides the specific price range for the only MFI IPO that recently hit the Indian capital market. The range is from Rs 860 to Rs 985.Rate this question:
- 4.
1. Which corporate became the first one to issue IDR’s in Indian market?
Correct Answer
Standard Chartered PLC
Standard CharteredExplanation
Standard Chartered PLC became the first corporate to issue IDR's (Indian Depository Receipts) in the Indian market. IDR's are financial instruments issued by a foreign company to raise funds from Indian investors. Standard Chartered PLC is a multinational banking and financial services company headquartered in London, and it made history by being the first corporate to introduce this investment tool in India.Rate this question:
- 5.
What is ASBA?
Correct Answer
Application Supported by Blocked AmountExplanation
ASBA stands for Application Supported by Blocked Amount. It is a mechanism introduced by the Securities and Exchange Board of India (SEBI) for applying to Initial Public Offerings (IPOs) and Rights Issues. Under ASBA, the applicant's bank account is blocked for the amount applied for in the IPO or Rights Issue. This ensures that the funds are available at the time of allotment, but remain in the applicant's account until the finalization of the allotment process. ASBA eliminates the need for refunds and reduces the time taken for the refund process, making it more efficient and convenient for investors.Rate this question:
- 6.
1. For a rights issue what is the document a merchant banker needs to submit to SEBI?
- A.
A) Prospectus
- B.
B) Red Herring Prospectus
- C.
C) Letter of offer
- D.
D) Information memorandum
Correct Answer
C. C) Letter of offerExplanation
A merchant banker needs to submit a "Letter of offer" to SEBI for a rights issue. This document contains detailed information about the rights issue, including the terms and conditions, price, and number of shares being offered to existing shareholders. It also includes information about the company's financials, management, and future plans. The letter of offer is an important document that helps investors make informed decisions about whether to participate in the rights issue or not.Rate this question:
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- 7.
1. The shares held by central Governments are being issued on whose name?
- A.
A. Govt of India
- B.
B. President of India
- C.
C. Prime Minister of India
- D.
D. None of these
Correct Answer
B. B. President of IndiaExplanation
The correct answer is b. President of India. The shares held by central Governments are being issued in the name of the President of India. This means that the President of India is the official owner of these shares on behalf of the central government.Rate this question:
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- 8.
1. Minimum in how many exchanges an IPO needs to be listed?
Correct Answer
2
Two
twoExplanation
The correct answer is 2. An IPO (Initial Public Offering) needs to go through a minimum of two exchanges to be listed. This means that the company offering its shares to the public must have its shares listed on at least two different stock exchanges. This can help provide more liquidity and visibility for the company's shares, as well as potentially attract a larger pool of investors.Rate this question:
- 9.
1. If a company offers discount on its IPO offer to the employees and retail investors, the employees and investors has to pay the discounted price before allotment of shares.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because if a company offers a discount on its IPO offer to employees and retail investors, they do not have to pay the discounted price before allotment of shares. Instead, they would pay the discounted price upon allotment of shares.Rate this question:
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- 10.
1. What is the maximum no of days an IPO offer can remain open for subscription?
Correct Answer
10 days
Ten days
10 Days
Ten DaysExplanation
The maximum number of days an IPO offer can remain open for subscription is 10 days.Rate this question:
- 11.
1. Within how much time from an IPO grading date the IPO can be issued without revalidating?
- A.
A. One month
- B.
B. Two month
- C.
C. Six month
- D.
D. Twelve month
Correct Answer
B. B. Two monthExplanation
After an IPO grading date, the IPO can be issued without revalidating within a period of two months. This means that the grading given to the IPO remains valid for two months, and the issuer does not need to go through the revalidation process during this time period.Rate this question:
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- 12.
1. How application and bidding forms are being categorised according to investor category?
- A.
A. By colour of the form
- B.
B. By amount of the application
- C.
C. By name of the applicant
- D.
D. By code given by the issuer
Correct Answer
A. A. By colour of the formExplanation
Application and bidding forms are being categorized according to investor category by the colour of the form. This means that different colours are assigned to different investor categories, allowing for easy identification and sorting of the forms based on the investor type. This categorization method helps streamline the application and bidding process, ensuring that the forms are properly organized and handled according to the investor category they belong to.Rate this question:
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- 13.
1. How many times IPO of Hindustan Media Subscribed?
- A.
A. 7.82 times
- B.
B. 4.89 times
- C.
C. 2.35 times
- D.
D. 11.2 times
Correct Answer
B. B. 4.89 timesExplanation
The correct answer is b. 4.89 times. This means that the Initial Public Offering (IPO) of Hindustan Media was subscribed 4.89 times, indicating a high level of demand for the company's shares during the IPO.Rate this question:
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- 14.
1. Following are the data after bidding of an IPO: a. Price band : 130 to 160 b. Total issue : 200000 equity shares of face value of Rs 10/- each c. Bid received No of shares Bid price i. 50000 Rs 155 ii. 100000 Rs 145 iii. 65000 Rs 148 iv. 115000 Rs 132 v. 80000 Rs 142 What will the cut off price for this issue?
Correct Answer
Rs 145
145
Rs.145Explanation
The cutoff price for this issue is Rs 145. This is because the highest bid price received is Rs 155, but the cutoff price is determined based on the bid price that will result in the maximum number of shares being sold. In this case, the bid price of Rs 145 will result in the sale of 100,000 shares, which is the highest number of shares among all the bids. Therefore, the cutoff price for this issue is Rs 145.Rate this question:
- 15.
1. What is the maximum price band an IPO issuer can fix on the issue?
Correct Answer
Cap in the price band should not exceed 120% of the floor price.
Not more than 120% of the floor price
The maximum price band an IPO issuer can fix on the issue should not exceed 120% of the floor priceExplanation
The maximum price band that an IPO issuer can set for the issue should not go beyond 120% of the floor price. In other words, the upper limit of the price range should not be more than 120% of the lower limit. This ensures that there is a reasonable range within which the IPO shares can be priced, preventing excessive pricing and potential market manipulation.Rate this question:
- 16.
1. What is the role of Reserve bank of India, as far as forex transactions are concerned?
- A.
A. Control & management of forex
- B.
B. Regulating and conserving forex
- C.
C. Administrative authority of all forex transitions
- D.
D. All the above
Correct Answer
D. D. All the aboveExplanation
The correct answer is d. All the above. The Reserve Bank of India plays multiple roles in relation to forex transactions. It is responsible for controlling and managing forex, regulating and conserving forex, and acting as the administrative authority for all forex transactions.Rate this question:
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- 17.
1. What is the currency the value of which keeps varying in direct method of quotation?
- A.
A. Indian Rupees
- B.
B. US Dollar
- C.
C. The foreign currency
- D.
D. None of the above
Correct Answer
A. A. Indian RupeesExplanation
In the direct method of quotation, the value of the currency being quoted is expressed in terms of the domestic currency. Since the value of Indian Rupees can vary in this method, it is the correct answer. The other options (US Dollar, the foreign currency, and None of the above) do not necessarily have a varying value in direct quotation.Rate this question:
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- 18.
1. What is the ISO code for Indian Currency
- A.
A. INR
- B.
B. IRS
- C.
C. Rupees
- D.
D. Rupees and Paise
Correct Answer
A. A. INRExplanation
The correct answer is a. INR. The ISO code for Indian Currency is INR. ISO codes are standardized three-letter codes used to represent currencies worldwide. INR stands for Indian Rupee.Rate this question:
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- 19.
How much foreign exchange can be carried by a person visiting India?
- A.
USD 10,000
- B.
USD 1,00,000
- C.
USD 25,000
- D.
Unlimited
Correct Answer
D. UnlimitedExplanation
There is no limit on the amount of foreign exchange that can be carried by a person visiting India. This means that individuals can bring any amount of foreign currency into the country without any restrictions.Rate this question:
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- 20.
1. Can resident Indians open foreign currency accounts in India?
- A.
• EEFC Accounts only
- B.
• RFC Accounts only
- C.
• EEFC Accounts and RFC Accounts
- D.
• None of the above
Correct Answer
C. • EEFC Accounts and RFC AccountsExplanation
Resident Indians can open both EEFC (Exchange Earners Foreign Currency) accounts and RFC (Resident Foreign Currency) accounts in India. EEFC accounts are meant for holding foreign currency earned through permissible transactions, while RFC accounts are meant for holding foreign currency acquired before becoming a resident or received as a gift or inheritance from a non-resident. Therefore, the correct answer is that resident Indians can open both EEFC accounts and RFC accounts.Rate this question:
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- 21.
Can investment be made by NRIs in unlisted shares issued by an Indian company?
- A.
Yes
- B.
No
Correct Answer
A. YesExplanation
NRIs (Non-Resident Indians) are allowed to invest in unlisted shares issued by Indian companies as per the regulations set by the Reserve Bank of India (RBI). This allows NRIs to participate in the growth of Indian companies and potentially earn returns on their investments. It is important to note that there may be certain conditions and restrictions imposed by the RBI regarding the amount and mode of investment.Rate this question:
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- 22.
1. Can Preference Shares be used as a route to foreign investment?
- A.
Yes
- B.
No
Correct Answer
A. YesExplanation
Preference shares can be used as a route to foreign investment because they offer certain advantages to foreign investors. Preference shares provide a fixed rate of dividend, which is attractive to investors seeking stable returns. Additionally, preference shareholders have a higher claim on the company's assets and earnings compared to common shareholders, providing a level of security to foreign investors. This makes preference shares an appealing investment option for foreign investors looking to invest in a company or country.Rate this question:
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- 23.
1. How much currency is allowed for a business tour?
- A.
USD 10,000
- B.
USD 25,000
- C.
USD 1,00,000
- D.
Unlimited
Correct Answer
B. USD 25,000Explanation
The correct answer is USD 25,000. This is the maximum amount of currency allowed for a business tour. It is important to note that different countries may have different regulations regarding the amount of currency that can be carried for business purposes.Rate this question:
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- 24.
1. The foreign exchange acquired for any purpose has to be used within how many days of purchase
- A.
90 days
- B.
180 days
- C.
270 days
- D.
365 days
Correct Answer
B. 180 daysExplanation
The correct answer is 180 days. This means that any foreign exchange acquired for any purpose must be used within 180 days of its purchase. This time limit ensures that the acquired foreign currency is utilized in a timely manner and prevents hoarding or speculation. It also helps to maintain the stability of the foreign exchange market and prevents any potential misuse or abuse of acquired foreign currency.Rate this question:
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- 25.
1. Whether a resident individual can invest in Venture Funds, unrated debt securities under the Forex scheme?
- A.
Yes
- B.
No
Correct Answer
A. YesExplanation
Resident individuals are allowed to invest in Venture Funds and unrated debt securities under the Forex scheme.Rate this question:
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- 26.
Whether under Forex scheme a customer can remit funds for acquisition of ESOPs?
- A.
Yes
- B.
No
Correct Answer
A. YesExplanation
Under the Forex scheme, a customer is allowed to remit funds for the acquisition of Employee Stock Option Plans (ESOPs). This means that individuals can transfer money for the purpose of purchasing stocks or options offered by their company as part of their employee compensation package. This allows employees to invest in their company's stock and potentially benefit from its growth.Rate this question:
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- 27.
1. Can foreign tourists open a bank account in India during their short visit?
- A.
Yes
- B.
No
Correct Answer
A. YesExplanation
Foreign tourists can open a bank account in India during their short visit. This allows them to have a secure place to keep their money and make transactions while they are in the country. It also provides them with the convenience of accessing local banking services and facilities. Opening a bank account in India can be beneficial for foreign tourists as it allows them to easily manage their finances and make payments during their stay.Rate this question:
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- 28.
1. One of the export customer requests you on 15th July to book a Forward Contract delivery September for USD 10, 00,000. Assuming the dollars are quoted in the local interbank market as under Spot USD/INR :: 40.5100/5200 Spot/July :: 0300/0400 Spot/August :: 0800/0900 Spot/September :: 1300/1400 Spot/October :: 1800/1900 Spot/November :: 2300/2400 Exchange margin(charged by bank) :: 0.0500 What rate will the customer get from the bank.
- A.
40.6400
- B.
40.3300
- C.
40.5900
- D.
None of the above
Correct Answer
C. 40.5900Explanation
The customer will get a rate of 40.5900 from the bank. This can be calculated by adding the exchange margin charged by the bank (0.0500) to the spot rate for September (40.5400). Therefore, 40.5400 + 0.0500 = 40.5900.Rate this question:
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- 29.
1. At a point of time, the following rates were being quoted. FF/$: 5.5880/5.5920 Rs/$: 35.50/35.60 What will be the quoted rate for Rs/FF?
- A.
6.3529/6.3662
- B.
6.3707/6.3483
- C.
6.3483/6.3707
- D.
6.3662/6.3529
- E.
None of the above
Correct Answer
C. 6.3483/6.3707Explanation
The quoted rate for Rs/FF can be calculated by dividing the rate for Rs/$ by the rate for FF/$. In this case, the rate for Rs/$ is 35.50/35.60 and the rate for FF/$ is 5.5880/5.5920. Dividing these two rates gives us 6.3483/6.3707, which matches the given answer.Rate this question:
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