Unit ko samjho · NISM Series III-A
SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018
9 questions is unit mein
Sawaal aur jawaab English mein hain, kyunki NISM ka exam paper bhi English mein hota hai.
Is unit mein kya hai
- What distinguishes an initial public offer from a further public offer of equity shares?
- Which issue offers new shares to existing shareholders in proportion to their current holdings?
- Under ASBA, what generally happens to the application amount before the amount payable for allotted securities is debited?
- An issue collects investor bids within a price band to assess demand and determine the issue price. Which process is described?
- A shareholder owns 600 shares. A rights issue offers one new share for every four held. What is the shareholder’s entitlement?
- An investor holds 300 shares before a one-for-two bonus issue. Assuming no other changes, how many shares will the investor hold afterwards?
- An offer contains a ₹60 crore fresh issue and a ₹40 crore shareholder offer for sale. Ignoring expenses, how much goes to the issuer?
- A company issues 2 lakh new shares at ₹75 each with ₹10 face value. Ignoring expenses, what are the share-capital and securities-premium additions?
- Shares priced at ₹100 offer one-for-four rights at ₹80. Assuming full subscription and no other effects, what is the theoretical ex-rights price?
Zaroori ideas
Practice bank se · 1
What distinguishes an initial public offer from a further public offer of equity shares?
An initial public offer is a public offer by an unlisted issuer, unlike a further public offer by a listed issuer. Remember: Distinguish initial and further public offers by the issuer’s listing and offering context.
Hint Common mistake: Assuming every new issue by a company is an IPO. Focus on the issuer’s listing status before the offer.
III-A-110Practice bank se · 2
Which issue offers new shares to existing shareholders in proportion to their current holdings?
A rights issue offers new shares to existing shareholders in proportion to their holdings. Remember: A rights issue creates a proportionate offer for existing shareholders.
Hint Common mistake: Confusing an offer to existing shareholders with an unrestricted public offer. Consider whether eligibility comes from an existing shareholding.
III-A-111Practice bank se · 3
Under ASBA, what generally happens to the application amount before the amount payable for allotted securities is debited?
ASBA, or Application Supported by Blocked Amount, blocks the application funds in the applicant’s bank account. The applicable amount is debited for allotted securities. Remember: ASBA blocks funds rather than requiring an immediate unrestricted transfer of the full application amount.
Hint Common mistake: Confusing a block on available funds with final payment for allotment. Distinguish reserving money from making the final payment.
III-A-112Practice bank se · 4
An issue collects investor bids within a price band to assess demand and determine the issue price. Which process is described?
Book building uses investor bids and demand information in the issue-pricing process. Remember: Book building links issue pricing to the demand revealed through bids.
Hint Common mistake: Treating the top of a as automatically the final issue price. Think about how bids contribute to discovering the offer price.
III-A-113Practice bank se · 5
A shareholder owns 600 shares. A rights issue offers one new share for every four held. What is the shareholder’s entitlement?
The entitlement is 150 shares. Rights shares = 600 ÷ 4 × 1 = 150. The stated holding creates no fractional entitlement. Remember: Apply the new-shares-to-existing-shares ratio in the correct direction.
Hint Common mistake: Multiplying existing holdings by the denominator of the rights ratio. Apply the entitlement ratio to the existing holding.
III-A-114Practice bank se · 6
An investor holds 300 shares before a one-for-two bonus issue. Assuming no other changes, how many shares will the investor hold afterwards?
The investor will hold 450 shares. Bonus shares = 300 ÷ 2 = 150. Total holding = 300 + 150 = 450 shares. Remember: Post-bonus holdings include both the original and additional shares.
Hint Common mistake: Reporting the bonus allotment as the total holding. Calculate the extra shares first, then add the original holding.
III-A-115Practice bank se · 7
An offer contains a ₹60 crore fresh issue and a ₹40 crore shareholder offer for sale. Ignoring expenses, how much goes to the issuer?
The issuer receives ₹60 crore from the fresh issue. The ₹40 crore offer-for-sale proceeds belong to the selling shareholders under the stated assumptions. Remember: An offer for sale does not itself raise fresh money for the issuer.
Hint Common mistake: Treating the entire public-offer size as funds raised by the company. Separate newly issued capital from existing shares sold by shareholders.
III-A-116Practice bank se · 8
A company issues 2 lakh new shares at ₹75 each with ₹10 face value. Ignoring expenses, what are the share-capital and securities-premium additions?
Share capital increases by ₹20 lakh and securities premium by ₹130 lakh. Share capital = 2 lakh × ₹10 = ₹20 lakh. Premium per share = ₹75 − ₹10 = ₹65. Securities premium = 2 lakh × ₹65 = ₹130 lakh. Remember: Separate the nominal value of issued shares from the issue premium.
Hint Common mistake: Crediting the entire issue price to paid-up share capital. Split the issue price between face value and the excess over face value.
III-A-117Practice bank se · 9
Shares priced at ₹100 offer one-for-four rights at ₹80. Assuming full subscription and no other effects, what is the theoretical ex-rights price?
The theoretical ex-rights price is ₹96. Four old shares contribute ₹400 and one new share contributes ₹80. Combined value = ₹480 across five shares. Theoretical price = ₹480 ÷ 5 = ₹96, not a prediction of the actual market price. Remember: Theoretical ex-rights value uses the enlarged number of shares.
Hint Common mistake: Treating a theoretical adjustment as a guaranteed future trading price. Combine the value of the old shares and new subscription money over the enlarged share count.
III-A-118On NSE, a circuit limit (price band) is the most a security's price may move in one trading session, measured from the previous day's close.
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