Quick and Easy Guides

NISM Securities Markets Foundation Certification Examination
Primary Markets
Q1.
If a public issue is heavily over subscribed
Q2.
Which of the following is essential for the public issue of a debt security?
Q3.
In an IPO (Initial Public Offer), a company that has already made a public issue raises further capital from the public.
Q4.
A right issue of shares may not follow all SEBI’s regulation on issue of shares.
Q5.
What is the period of a right issue during which investors subscribe to the shares.
Q6.
A retail investor in a public issue is an investor
Q7.
In an offer of sale of shares the funds raised by the issue
Q8.
A public issue will be open for how many days?
Q9.
Which of the following eligibility norms specified by SEBI is wrong for a company making an initial public issue of shares?
Q10.
In a bull market when secondary market activity is high and prices are on a general upswing, the number of primary issues is generally lower.
Q11.
(I) An issuer of bonds is not responsible for paying interest and returning the principal on maturity. (II) Government securities are issued by RBI
Q12.
What will be the minimum subscription that a public issue should receive?
Q13.
A non-institutional and non-retail investor in a public issue is an investor
Q14.
Which of the following categories of shares have to be mandatorily listed on a stock exchange:
Q15.
(I) Institutional investors are also known as Qualified institutional buyers (QIBs) (II) The objective of a book building process is to identify the price that the market is willing to pay for the securities being issued by the company.
Q16.
Who is responsible for collecting the bid/application forms and ensuring that it is accompanied by a payment instrument?
Q17.
The Green shoe Option (GSO) in a public offer is issued by companies to provide stability to price of the share in the secondary market immediately on listing.
Q18.
Which is wrong about preferential allotment of securities?
Q19.
Shares allotted in a Qualified Institutional Placement (QIP) can be sold only on a recognized stock exchange if the sale happens within one year of allotment.
Q20.
A company has to offer at least 10% of its post-issue paid-up capital to the public.In case of government companies, this limit is 25%.
Q21.
(I) Private placement: Securities are issued to a select set of institutional investors, who can bid and purchase the securities on offer. (II) Rights and bonus issues: Securities are issued to existing investors as on a specific cut-off date.
Q22.
(I) Central, State and Local governments issue equity capital. (II) Mutual Funds issue units, so that capital is raised for specifically defined schemes.
Q23.
What is under-subscribed?
Q24.
A preliminary red herring prospectus is filed with:
Q25.
Who is appointed by lead managers to manage the collection of funds in the issue?
Q26.
The R&T Agents are appointed by:
Q27.
The lead managers are also known as:
Q28.
The issuer appoints the lead manager who will manage the regulatory and operational aspects of the public offer of shares.
Q29.
Once the issue opens, who collects and reconciles the forms received on a daily basis and gives a final collection certificate?
Q30.
In a fixed price issue of shares to the public, who decides on the price at which shares will be issued?
Q31.
The grade for Credit Rating of IPO ranges from
Q32.
The primary issue of government securities does not come under the regulatory purview of SEBI, but is governed by the Government Securities Act, 2000.
Q33.
The disinvestment of shares by the government in PSUs is an example of a Fresh Issue of Shares.
Q34.
SEBI has prescribed restrictions on the transferability of shares acquired through an IPP for a period of
Q35.
The intervention in the secondary market will be done only for a period of

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