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Question 1

What is the correct definition of frequently traded shares?

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Question 2

As per Securities Contract (Regulations) Rules 1957, what is the maximum permissible non-public shareholding in a listed company?

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Question 3

What is the minimum threshold of acquisition of voting rights at which open offer is required?

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Question 4

SEBI (Substantial acquisition of shares and takeovers) Regulations, 2011 provides for two types of open offers: mandatory and voluntary. In case of mandatory open offer, what should be the minimum size of open offer as a percentage of total shares of the Target company?

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Question 5

SEBI (Substantial acquisition of shares and takeovers) Regulations, 2011 provides for two types of open offers: mandatory and voluntary. In case of voluntary open offer, what should be the minimum size of open offer in terms of acquisition of voting rights of the Target Company?

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Question 6

As per SEBI (Substantial acquisition of shares and takeovers) Regulations 2011, an Open offer is an offer made by the acquirer to the shareholders of the target company inviting them to tender their shares in the target company at a particular price. It can mandatory or voluntary open offer.
Consider the below statements regarding open offer:
Statement 1: An acquirer is required to give “open offer” to the shareholders of Target Company if on acquiring shares of the Target Company, he becomes entitled to 20% or more voting rights in the Target Company.
Statement 2: The Voluntary Open Offer shall be made for the acquisition of at least 10% of the voting rights in the Target Company.
Statement 3: The mandatory open offer needs to be for at least 25% of total shares of the target company.
Which of the above statements is/are incorrect?

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Question 7

Chapter III of SEBI (Substantial acquisition of shares and takeovers) Regulations, 2011 contain provisions about the open offer process.
Consider the following statements regarding open offer process:
Statement 1: The acquirer needs to appoint a Merchant Banker as the Manager of open offer.
Statement 2: Acquirer is required to make Public Announcement of open offer after publishing the Detailed Public Statement (DPS).
Statement 3: Acquirer needs to create an escrow account in which a portion of “consideration payable under open offer” will be kept.
Which of the following statements is/are incorrect?

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Question 8

As per SEBI (Substantial acquisition of shares and takeovers) Regulations, 2011, an acquirer is required to create an escrow account in which a portion of “consideration payable under open offer” will be kept as a security. What percentage of the first 500 crore rupees of consideration is required to kept under escrow account?

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Question 9

Section 15H of the SEBI Act 1992 contains penalty for non-disclosure of acquisition of shares and takeovers. What is the minimum penalty specified by this section?

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Question 10

As per SEBI (Substantial acquisition of shares and takeovers) Regulations 2011, an Open offer is an offer made by the acquirer to the shareholders of the target company inviting them to tender their shares in the target company at a particular price. For how many working days an open offer is required to be kept open?

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Securities Market - Substantial Acquisition of shares

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