Underwriting of shares and debentures

When the entire issue is underwritten by only one person, his liability will be equal to:

• No.of shares underwritten

• No.of shares underwritten minus No.of shares applied by public

• No.of shares applied by public

• No.of Marked and Unmarked applications

The underwriter is entitled to claim remuneration on

• Issue price of shares

• Face value of shares actually purchased

• Face value of shares not purchased by him

• Issue Price minus underwriter's commission

When an underwriter agrees to buy a definite number of shares in addition to unsubscribed shares, termed as

• Partial underwriting

• Complete underwriting

• Firm underwriting

• Marked applications

According to sec ___ of the Company Act 2013, the commission payable to underwriter should not exceed ____.

• 40(b); 5%

• 40(a); 5%

• 40(b); 2.5%

• 40(a); 1.5%

Commission for underwriting shares as per SEBI Guidelines is

• 5%

• 2.5%

• 1.5%

• 1%

The underwriting commission in case of preference shares/ debentures beyond Rs.5 Lakhs as per SEBI Guidelines, should not exceed

• 2%

• 2.5%

• 5%

• 1.5%

Under Partial underwriting, the company itself becomes the underwriter for the shares ___.

• Not underwritten

• Sub-underwritten

• Partial underwriten

• Complete underwriten

An underwriter may reduce his burden o buying shares through entering am agreement with another person known as ___.

• Not underwriter

• Sub-underwriter

• Partial underwriter

• Complete underwriter

A company issued 20000 equity shares which were underwritten by X. The company received applications for 24000 shares. Hence X will get his commission on the issue price of ___ shares.

• 20000

• 24000

• 4000

• Rs.200000

The underwriting commission is payable in cash alone.

Marked applications are also known as direct applications.

• Both are False

• Both are True

• True, False

• False, True