71-Underwriting

Banking Awareness Multiple Choice Questions (MCQs) and Answers with explanation on Underwriting for IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Bank

1. What is the full form of IPO?

[A] Initial Payment Offer
[B] Initial Public Offering
[C] Indian Public Offer
[D] Indian Payment offer

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2. What is the limit of the commission set for Underwriting in India?

[A] 5% on shares and 2.5% on debentures
[B] 2.5% on shares and 5% on shares
[C] 10% on shares and 5% on debentures
[D] None of the Above

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3. Which of the following clearly define the Syndicate Underwriting?

[A] It is underwriting in which, two or more agencies or underwriters jointly underwrite an issue of
[B] It is one in which an underwriter gets a part of the issue further underwritten by another agency.
[C] It is one in which the underwriters apply for a block of securities.
[D] None of the Above

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4. To work as an underwriter in India ,a certificate of registration must be obtained from which of the following institutions?

[A] SBI
[B] RBI
[C] SEBI
[D] CIBIL

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5. Which of the following acts regulates the underwriting process in India?

[A] RBI Act 1934
[B] Securities and Exchanges Board of India (Underwriters) Regulations, 1993.
[C] Securities and Exchange Board of India (Underwriters) (Amendment) Regulations, 2006
[D] Both b and c

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6. What is the full form of QIB?

[A] Quotation for Indian Bidders
[B] Qualified Indian Bidders
[C] Qualified Institutional Bidders
[D] Quoted Indian Bidders

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7. Which of the following are the Institutional Underwriters in India?

[A] IDBI
[B] IFCI
[C] UTI
[D] All of the Above

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8. Who was the head of review committee on underwriting rules and regulation ?

[A] Shri Vallabh Bhansali
[B] C. Rangarajan
[C] Urjit Patel
[D] Nandan Nilekani

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9. The Certificate of Initial Registration for an underwriter with SEBI remains valid for how many years?

[A] 3
[B] 4
[C] 5
[D] 7

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10. An underwriter undertakes to buy a certain number of shares or debentures irrespective of the subscription from the public. This type of underwriting is known as___________?

[A] Sub-Underwriting
[B] Firm Underwriting
[C] Syndicate Underwriting
[D] Outright Purchases of Issues

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