Level 1: CA Inter Law – Part I – Chapter 3 – Prospectus and Allotment of Securities MCQs Set II

Application money shall be refunded by way of ___________

ABC ltd. Has started utilising the money of shares before securities have been permitted to be dealt with in the stock exchange or stock exchanges specified in the prospectus, in this case company will be liable for fine of minimum ____________ and maximum _______________.

ABC ltd. Has started utilising the money received from shares before securities have been permitted to be dealt with in the stock exchange or stock exchanges specified in the prospectus, in this case every officer in default shall be liable for imprisonment of –

ABC ltd. Has started utilising the money of shares before securities have been permitted to be dealt with in the stock exchange or stock exchanges specified in the prospectus, in this case every officer in default shall be liable for fine of minimum __________ and maximum _______________.

An intermediary who undertakes to subscribe to the securities offered by the company in case these are not subscribed by the public, in case of an underwritten issue, is known as ___________

Underwriter shall be paid ___________

Payment of underwriter commission shall be authorised by ___________-

Underwriter commission can be paid out of _______________

Rate of commission paid or agreed to be paid in case of shares, shall not exceed ____________ of the price at which the shares are issued or the rate authorised by the articles, whichever is less.

Rate of commission paid or agreed to be paid in case of debentures, shall not exceed ____________ of the price at which the shares are issued or the rate authorised by the articles, whichever is lower.

Prospectus shall disclose the matters related to underwriters are____?

A copy of the underwriting agreement shall be delivered to registrar at the time of ______________.

At the time of issuing shares, board of directors of ABC Ltd. Has decided to pay underwriter commission at the rate of 5%, on the other hand AOA of the company permit 3% of commission, which is the correct rate to pay the underwriter commission?

At the time of issuing shares, board of directors of ABC Ltd. Has decided to pay underwriter commission at the rate of 6%, on the other hand AOA of the company permit 7% of commission, which is the correct rate to pay the underwriter commission?

At the time of issuing debentures, board of directors of ABC Ltd. Has decided to pay underwriter commission at the rate of 5%, on the other hand AOA of the company permit 3% of commission, which is the correct rate to pay the underwriter commission?

At the time of issuing debentures, board of directors of ABC Ltd. Has decided to pay underwriter commission at the rate of 2%, on the other hand AOA of the company permit 1.5% of commission, which is the correct rate to pay the underwriter commission?

Board of directors of ABC ltd. Decides to pay the commission out of the proceeds of the share capital. Is this decision correct?

Board of directors of ABC Ltd. Has decided to pay underwriter commission in the form of flats to the underwriter. Is this decision correct?

Provision of private placement is given u/s

Every private placement of companies shall comply with __________

Any offer or invitation to subscribe the securities to such selected group of persons by a company, other than by way of public issue, is known as _________

Private placement shall not be made, during the entire F.Y., to more than__________

While computing persons at the time of private placement, ___________ shall be excluded.

The restriction with respect of the maximum number of persons to whom private placement can be made would be reckoned individually for each kind of securities like, eq. share, pref. shares, deb. This statement is ___________.

If company allot shares to more than 200 persons, in case of private placement, then__________

Provision with respect of maximum number of persons, in case of private placement, shall not apply to _________________.

Provision with respect of maximum number of persons, in case of private placement, shall also be apply to NBFC and housing finance companies, only if __________

A company making private placement shall allot the securities within ______________ of receiving the application money.

A company making private placement shall allot the securities within 60 days of receiving the application money. And if company fails to allot within such time, it shall within next ____________ time repay the application money to the applicant.

A company making private placement shall allot the securities within 60 days of receiving the application money. And if company fails to allot within such time, it shall within next 15 days repay the application money to the applicant. If the company fails, to repay within 15 days, it shall be liable for interest @_______, from the expiry of 60th day.

After the allotment under private placement, company shall file ________ with the registrar.

Return of allotment in case of private placement, shall be filed within ________.

Return of allotment in case of private placement, shall contain _________

If company makes an offer or acceptance, in contravention of the provision of private placement, company, promoter and director shall be liable for _________.

If company makes an offer or acceptance, in contravention of the provision of private placement, company shall refund all the money within _____?

If company makes an offer or acceptance, in contravention of the provision of private placement, company shall be liable to pay interest ______ to the subscriber.

If company makes an offer or acceptance, in contravention of the provision of private placement, company shall ___________.

For making private placement which resolution is required for each offer or invitation, subject to exception.

In case of offer or invitation of non-convertible debenture, under private placement, if amount is more than aggregate of paid-up capital, free reserves and securities premium, then which resolution is required.

In case of offer or invitation of non-convertible debenture, under private placement, if amount is less than aggregate of paid-up capital, free reserves and securities premium, then which resolution is required.

Private placement letter shall be in form _______

Private placement letter shall be sent to person to whom offer has been made, within _______?

The company shall maintain a complete record of private placement offers in which form?

The return of allotment, in case of private placement, in form ___________.

If a company makes public offer of securities, without issuing prospectus then company and other officer in default shall be punishable with fine upto–

If a company makes public offer of securities, without issuing prospectus and if the contravention is continuing then company and other officer in default shall be punishable with fine upto-

Prospectus issued by the company is misleading or does not contain the matters required to be included therein, then company shall be liable for the fine of minimum _______ and maximum______________.

Prospectus issued by the company is misleading or does not contain the matters required to be included therein, then every person in default shall be liable for imprisonment of ____?

Prospectus issued by the company is misleading or does not contain the matters required to be included therein, then every person in default shall be liable for fine of minimum ___________ and maximum __________.

Prospectus issued by the company is misleading or does not contain the matters required to be included therein, then every person in default shall be liable for _____________

If the prospectus is issued to the public without 1st delivery to the registrar a copy of the prospectus, then company shall be liable for the fine of minimum _____________ and maximum ________________.

If the prospectus is issued to the public without 1st delivery to the registrar a copy of the prospectus, then every person in default shall be liable for imprisonment of how much time?

If the prospectus is issued to the public without 1st delivery to the registrar a copy of the prospectus, then every person in default shall be liable for fine of minimum _______________ and maximum _______________.

If the prospectus is issued to the public without 1st delivery to the registrar a copy of the prospectus, then every person in default shall be liable for –

If money obtained from offer is not kept in separate bank account, then company shall be liable for fine of minimum _____________ and maximum ____________.

If money obtained from offer is not kept in separate bank account, then every officer in default shall be liable for imprisonment of how much time?

If money obtained from offer is not kept in separate bank account, then every officer in default shall be liable for fine of minimum ___________ and maximum ______________.

If money obtained from offer is not Kept in separate bank account, then every officer in default shall be liable for –

A company which has raised money through issue of prospectus, shall not use such money for buying, trading or dealing in the equity shares of any other listed company. This statement is –

If a company intends to vary the terms of any contract referred to in the prospectus or vary the objects for which the prospectus was issued, the dissenting shareholder shall be given an exit offer by ____________.

If a company intends to vary the terms of any contract referred to in the prospectus or vary the objects for which the prospectus was issued, the dissenting shareholder shall be given an exit offer by the promoters or controlling shareholder, and the exit price, condition and manners shall be such as specified in –

The global depositary receipt can be issued by way of –

Television advertisement and visual clips giving required details can be treated as prospectus. This statement is –