IPO & FOREX Quiz

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  • 1/29 Questions

    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?

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IPO & FOREX Quiz - Quiz
About This Quiz

This IPO & FOREX Quiz tests knowledge on IPO processes in India, including rating agencies, IPO pricing, and regulatory requirements. It's designed for learners interested in finance, enhancing their understanding of IPO mechanics and market regulations.

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  • 2. 

    1.       Minimum in how many exchanges an IPO needs to be listed?

    Explanation
    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.

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  • 3. 

     What is ASBA? 

    Explanation
    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.

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  • 4. 

    1.       What is the ISO code for Indian Currency 

    • A. INR

    • B. IRS

    • C. Rupees

    • D. Rupees and Paise

    Correct Answer
    A. A. INR
    Explanation
    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.

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  • 5. 

    1.       Which corporate became the first one to issue IDR’s in Indian market?

    Correct Answer
    Standard Chartered PLC
    Standard Chartered
    Explanation
    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.

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  • 6. 

    1.       Whether a resident individual can invest in Venture Funds, unrated debt securities under the Forex scheme?

    • Yes

    • No

    Correct Answer
    A. Yes
    Explanation
    Resident individuals are allowed to invest in Venture Funds and unrated debt securities under the Forex scheme.

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  • 7. 

    1.       What is the role of Reserve bank of India, as far as forex transactions are concerned? 

    • A. Control & management of forex

    • B. Regulating and conserving forex

    • C. Administrative authority of all forex transitions

    • D. All the above

    Correct Answer
    A. D. All the above
    Explanation
    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.

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  • 8. 

    Can investment be made by NRIs in unlisted shares issued by an Indian company?

    • Yes

    • No

    Correct Answer
    A. Yes
    Explanation
    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.

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  • 9. 

    Who the BRLM was for recently issued Bajaj Corp Ltd. IPO?

    • A. Kotak Mahindra Capital Co. Ltd

    • B. SBI Capital

    • C. JP Morgan

    • D. KEYNOTE CORPORATE SERVICES LTD.

    Correct Answer
    A. A. Kotak Mahindra Capital Co. Ltd
    Explanation
    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.

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  • 10. 

    1.       For a rights issue what is the document a merchant banker needs to submit to SEBI?

    • A) Prospectus

    • B) Red Herring Prospectus

    • C) Letter of offer

    • D) Information memorandum

    Correct Answer
    A. C) Letter of offer
    Explanation
    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.

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  • 11. 

    1.       Can foreign tourists open a bank account in India during their short visit?

    • Yes

    • No

    Correct Answer
    A. Yes
    Explanation
    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.

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  • 12. 

    1.       Can Preference Shares be used as a route to foreign investment?

    • Yes

    • No

    Correct Answer
    A. Yes
    Explanation
    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.

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  • 13. 

    Whether under Forex scheme a customer can remit funds for acquisition of ESOPs?

    • Yes

    • No

    Correct Answer
    A. Yes
    Explanation
    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.

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  • 14. 

    1.       How many times IPO of Hindustan Media Subscribed?

    • A. 7.82 times

    • B. 4.89 times

    • C. 2.35 times

    • D. 11.2 times

    Correct Answer
    A. B. 4.89 times
    Explanation
    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.

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  • 15. 

    1.       Can resident Indians open foreign currency accounts in India?

    • • EEFC Accounts only

    • • RFC Accounts only

    • • EEFC Accounts and RFC Accounts

    • • None of the above

    Correct Answer
    A. • EEFC Accounts and RFC Accounts
    Explanation
    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.

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  • 16. 

    1.       The foreign exchange acquired for any purpose has to be used within how many days of purchase

    • 90 days

    • 180 days

    • 270 days

    • 365 days

    Correct Answer
    A. 180 days
    Explanation
    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.

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  • 17. 

    1.       Within how much time from an IPO grading date the IPO can be issued without revalidating?

    • A. One month

    • B. Two month

    • C. Six month

    • D. Twelve month

    Correct Answer
    A. B. Two month
    Explanation
    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.

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  • 18. 

    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?

    • 6.3529/6.3662

    • 6.3707/6.3483

    • 6.3483/6.3707

    • 6.3662/6.3529

    • None of the above

    Correct Answer
    A. 6.3483/6.3707
    Explanation
    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.

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  • 19. 

    1.       How much currency is allowed for a business tour?

    • USD 10,000

    • USD 25,000

    • USD 1,00,000

    • Unlimited

    Correct Answer
    A. USD 25,000
    Explanation
    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.

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  • 20. 

    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 Days
    Explanation
    The maximum number of days an IPO offer can remain open for subscription is 10 days.

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  • 21. 

    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.

    • 40.6400

    • 40.3300

    • 40.5900

    • None of the above

    Correct Answer
    A. 40.5900
    Explanation
    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.

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  • 22. 

    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.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    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.

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  • 23. 

    1.       The shares held by central Governments are being issued on whose name?

    • A. Govt of India

    • B. President of India

    • C. Prime Minister of India

    • D. None of these

    Correct Answer
    A. B. President of India
    Explanation
    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.

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  • 24. 

    How much foreign exchange can be carried by a person visiting India?

    • USD 10,000

    • USD 1,00,000

    • USD 25,000

    • Unlimited

    Correct Answer
    A. Unlimited
    Explanation
    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.

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  • 25. 

    1.       What is the currency the value of which keeps varying in direct method of quotation? 

    • A. Indian Rupees

    • B. US Dollar

    • C. The foreign currency

    • D. None of the above

    Correct Answer
    A. A. Indian Rupees
    Explanation
    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.

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  • 26. 

    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 - 985
    Explanation
    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.

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  • 27. 

    1.       How application and bidding forms are being categorised according to investor category?

    • A. By colour of the form

    • B. By amount of the application

    • C. By name of the applicant

    • D. By code given by the issuer

    Correct Answer
    A. A. By colour of the form
    Explanation
    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.

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  • 28. 

    Which are the IPO rating agencies operating in India?

    Correct Answer
    ICRA, CRISIL, CARE, FITCH INDIA, BRICKWORK
    CRISIL, ICRA,CARE, FITCH INDIA, BRICKWORK
    ICRA, CARE,CRISIL, FITCH INDIA, BRICKWORK
    CRISIL,CARE,ICRA, FITCH INDIA, BRICKWORK
    Explanation
    The correct answer is ICRA, CRISIL, CARE, FITCH INDIA, BRICKWORK. These are the IPO rating agencies operating in India.

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  • 29. 

    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 price
    Explanation
    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.

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  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Sep 16, 2010
    Quiz Created by
    Jogimaddi

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