Q: 1:
Vodafone Idea Ltd, India's Largest telecom firm by subscribers approved Rs.25,000 Crore ($3.63 billion) rights issues at a sharp discount, sending its share Prices Tumbling. Which of the following Statement is/are correct regarding Right Issue?(i) A rights offering is a group of rights offered to the new shareholders to purchase additional stock share
(ii) Rights are often non-transferable, disallowing the holders to sell ten in the open market.
(iii) Existing shareholders can choose to ignore the rights.
a. All are Correct
b. None is Correct
c. Only (i) is Correct
d. Only (ii) is Correct
e. Only (iii) is Correct
Solution: e. Only (iii) is Correct
A rights issue is an offering of rights to the existing shareholders of a company that gives them an opportunity to buy additional shares directly from the company at a discounted price rather than buying them in the secondary market. The number of additional shares that can be bought depends on the existing holdings of the shareowners. Rights are often transferable, allowing the holder to sell them in the open market.
Q: 2:
The Reserve Bank of India said the government has approved implementation of the interest subvention scheme (ISS) with modifications for the years 2018-19 and 2019-20. Which of the following statements are correct in this regard?
(i) In order to provide short-term crop loans upto ₹5 lakh to farmers at an interest rate of 7% p.a. during the years 2018-19 and 2019-20, it has been decided to offer interest subvention of 2% per annum to lending institutions.
(ii) Additional interest subvention of 4% per annum to such of those farmers repaying in time.
(iii) For farmers affected by natural calamities, an interest subvention of 3 per cent per annum will be made available to banks for the first year on the restructured loan amount.
a. None is correct
b. All are correct
c. Only (i) is correct
d. Only (ii) is correct
e. Only (i) and (iii) are correct
Solution: a. None is correct
In order to provide short-term crop loans upto ₹3 lakh to farmers at an interest rate of 7% p.a. during the years 2018-19 and 2019-20, it has been decided to offer interest subvention of 2% per annum to lending institutions Additional interest subvention of 3% per annum to such of those farmers repaying in time To provide relief to farmers affected by natural calamities, an interest subvention of 2% per annum will be made available to banks for the first year on the restructured loan amount.
Q: 3:
Complete the following statement.
SEBI has recently stipulated the criteria for Foreign Portfolio Investment. According to this, any equity investment by non-residents which is less than or equal to _____________ % of capital in a company is portfolio investment. While above this the investment will be counted as Foreign Direct Investment (FDI).
a. 10%
b. 15%
c. 9%
d. 20%
e. 25%
Solution: a. 10%
- From RBI Official Website: Foreign Portfolio Investment’ means any investment made by a person resident outside India through capital instruments where such investment is less than 10 percent of the post issue paid-up share capital on a fully diluted basis of a listed Indian company or less than 10 percent of the paid up value of each series of capital instruments of a listed Indian company;
- The 10 percent limit for foreign portfolio investors shall be applicable to each foreign portfolio investor or an investor group as referred in Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014.
Q: 4:
Which of the following statement is/are correct regarding Wholesale Price Index of India?
a. The index basket of the WPI covers commodities falling under the five major groups
b. The base year of All-India WPI has been revised from 2004-05 to 2011-12.
c. Wholesale Price Index (WPI) represents the price of representative commodity basket of 698 items at the wholesale level
d. It is complied by Central Statistics Office
e. All of the above are correct
Solution: b. The base year of All-India WPI has been revised from 2004-05 to 2011-12.
- The index basket has three major groups namely Primary Articles, Fuel and Power and Manufactured products. Wholesale Price Index (WPI) represents the price of representative commodity basket of 697 items at the wholesale level.
- The Office of the Economic Adviser in the Department of Industrial Policy and Promotion, Ministry of Commerce & Industry is responsible for compiling WPI and releasing.
Q: 5:
Which of the following statement is/are not true regarding Non-Banking Financial Company?
(i). It is a company registered under the Reserve Bank of India Act, 1934.
(ii). NBFC cannot accept demand deposits
(iii) It cannot issue cheques drawn on itself
(iv) . NBFCs whose asset size is of Rs. 300 cr or more as per last audited balance sheet are considered as systemically important NBFCs
(v). The Reserve Bank has not been given the powers under to register, lay down policy, issue directions, inspect, regulate, supervise and exercise surveillance over NBFCs.
a. All are not true
b. All are true
c. Only (i), (iv) and (v) are not true
d. Only (i), (ii) and (v) are not true
e. Only (i), (iv) and (iii) are not true.
Solution: c. Only (i), (iv) and (v) are not true.
- It is a company registered under the Companies Act, 1956 NBFCs whose asset size is of Rs. 500 cr or more as per last audited balance sheet are considered as systemically important NBFCs.
- The Reserve Bank has been given the powers under the RBI Act 1934 to register, lay down policy, issue directions, inspect, regulate, supervise and exercise surveillance over NBFCs.
