50 MCQ THE SEBI (SUBSTANTIAL ACQUISITION OF SHARES AND TAKEOVERS) REGULATIONS, 2011
Which regulatory body in India oversees the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) RBI
B) SEBI
C) IRDAI
D) NSE
Answer: B) SEBI
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what is the threshold for triggering an open offer?
A) 15%
B) 20%
C) 25%
D) 30%
Answer: C) 25%
Who is required to make an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) Acquirer
B) Target company
C) Both Acquirer and Target company jointly
D) SEBI
Answer: A) Acquirer
What is the time frame within which an acquirer must make a public announcement of an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, after acquiring shares or voting rights?
A) 5 working days
B) 15 working days
C) 21 calendar days
D) 30 calendar days
Answer: B) 15 working days
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what is the minimum size of the open offer that must be made to public shareholders?
A) 10% of voting rights
B) 15% of voting rights
C) 20% of voting rights
D) 25% of voting rights
Answer: A) 10% of voting rights
Which of the following actions does not trigger an open offer obligation under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) Acquisition of voting rights
B) Acquisition of control over the target company
C) Transfer of shares between promoters
D) Merger or demerger of the acquirer
Answer: C) Transfer of shares between promoters
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what is the maximum price an acquirer can offer in an open offer?
A) Market price
B) Floor price
C) Ceiling price
D) Fair market value
Answer: C) Ceiling price
Which of the following entities is exempted from making an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) Private equity investor
B) Venture capital fund
C) Bank acquiring shares as part of debt restructuring
D) Institutional investor
Answer: D) Institutional investor
In case of an indirect acquisition of shares or voting rights under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what is the threshold that triggers an open offer?
A) 15%
B) 20%
C) 25%
D) 30%
Answer: B) 20%
Which authority approves the open offer document under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) RBI
B) NSE
C) SEBI
D) IRDAI
Answer: C) SEBI
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what is the minimum duration for which an open offer must remain open for acceptance by shareholders?
A) 7 days
B) 10 days
C) 15 days
D) 21 days
Answer: D) 21 days
Which of the following actions requires approval from SEBI under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) Increase in dividend payout ratio
B) Reduction in board size
C) Change in control of the target company
D) Appointment of a new CEO
Answer: C) Change in control of the target company
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what is the maximum penalty for non-compliance with open offer obligations?
A) Rs. 5 crores
B) Rs. 10 crores
C) Rs. 15 crores
D) Rs. 20 crores
Answer: B) Rs. 10 crores
Who is responsible for determining the offer price in an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) SEBI
B) Independent valuer
C) Target company’s board
D) Stock exchange committee
Answer: B) Independent valuer
What is the maximum permissible non-compete fee that can be paid under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) 1% of the transaction value
B) 3% of the transaction value
C) 5% of the transaction value
D) 10% of the transaction value
Answer: A) 1% of the transaction value
Which of the following statements is true regarding the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) They apply only to listed companies.
B) They apply only to private companies.
C) They apply to both listed and unlisted companies.
D) They apply only to foreign companies.
Answer: C) They apply to both listed and unlisted companies.
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what is the minimum threshold that triggers mandatory disclosure of shareholding changes by an acquirer?
A) 1%
B) 2%
C) 3%
D) 5%
Answer: D) 5%
Which of the following actions requires approval from shareholders under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) Issuance of bonus shares
B) Appointment of an independent director
C) Amalgamation of two subsidiaries
D) Acquisition of treasury shares
Answer: C) Amalgamation of two subsidiaries
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, who can initiate the process of delisting a company from the stock exchange?
A) SEBI
B) Stock exchange
C) Board of directors of the target company
D) Acquirer
Answer: C) Board of directors of the target company
In case of an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, who bears the responsibility for ensuring the funds are available for settlement?
A) Acquirer
B) SEBI
C) Target company
D) Stock exchange
Answer: A) Acquirer
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what is the maximum permissible limit for non-promoter shareholders to tender their shares in an open offer?
A) 15%
B) 25%
C) 49%
D) 75%
Answer: C) 49%
Which of the following events does not require approval from SEBI under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) Change in control of the acquirer
B) Change in control of the target company
C) Scheme of arrangement for merger
D) Transfer of shares between immediate relatives
Answer: D) Transfer of shares between immediate relatives
What is the role of an independent director in the context of an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) Determines the offer price
B) Approves the draft letter of offer
C) Evaluates the fair market value of shares
D) Monitors compliance with SEBI guidelines
Answer: B) Approves the draft letter of offer
Which of the following actions can trigger an exemption from making an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) Increase in voting rights
B) Preferential allotment of shares
C) Change in management control
D) Bonus issue of shares
Answer: D) Bonus issue of shares
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what is the maximum penalty for failing to make timely disclosures of shareholding changes?
A) Rs. 1 lakh per day
B) Rs. 5 lakhs per day
C) Rs. 10 lakhs per day
D) Rs. 15 lakhs per day
Answer: C) Rs. 10 lakhs per day
Who determines the open offer price under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) Board of Directors of the acquirer
B) SEBI
C) Independent valuer
D) Stock exchange committee
Answer: C) Independent valuer
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what is the minimum percentage of shares that must be acquired to trigger an open offer?
A) 10%
B) 15%
C) 20%
D) 25%
Answer: C) 20%
Which of the following is not considered a part of the open offer process under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) Publication of offer document
B) Approval of SEBI
C) Payment of consideration to shareholders
D) Disclosure of shareholding pattern
Answer: D) Disclosure of shareholding pattern
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, who is responsible for ensuring that the open offer complies with regulatory requirements?
A) Acquirer
B) SEBI
C) Target company
D) Stock exchange
Answer: B) SEBI
What is the time frame within which an acquirer must announce the intention to make an open offer after the acquisition triggers the open offer obligation under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) 1 working day
B) 5 working days
C) 10 working days
D) 15 working days
Answer: B) 5 working days
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what is the minimum size of the open offer that must be made if the acquirer intends to increase their shareholding beyond a certain threshold?
A) 5% of voting rights
B) 10% of voting rights
C) 15% of voting rights
D) 20% of voting rights
Answer: B) 10% of voting rights
Which of the following documents is required to be filed with SEBI in connection with an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) Share purchase agreement
B) Board resolution of the target company
C) Undertaking from the acquirer
D) Auditor’s certificate of the acquirer
Answer: C) Undertaking from the acquirer
What is the maximum permissible time frame for completing the settlement of funds to shareholders who accept the open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) 7 working days
B) 10 working days
C) 15 working days
D) 21 working days
Answer: C) 15 working days
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, who decides whether an open offer is successful?
A) SEBI
B) Acquirer
C) Independent valuer
D) Shareholders of the target company
Answer: D) Shareholders of the target company
Which of the following transactions does not trigger an open offer requirement under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) Acquisition of control over the target company
B) Preferential allotment of shares
C) Transfer of shares between subsidiaries
D) Reduction in share capital
Answer: C) Transfer of shares between subsidiaries
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what is the minimum threshold for disclosure of shareholding changes by an acquirer to the target company?
A) 1%
B) 2%
C) 3%
D) 5%
Answer: D) 5%
Which of the following statements is true regarding the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) They apply only to acquisitions made by Indian residents.
B) They apply to acquisitions made by both Indian and foreign residents.
C) They apply only to acquisitions of listed companies.
D) They apply only to acquisitions of unlisted companies.
Answer: B) They apply to acquisitions made by both Indian and foreign residents.
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, who monitors the implementation of the open offer process?
A) SEBI
B) Stock exchanges
C) Ministry of Corporate Affairs
D) Reserve Bank of India
Answer: A) SEBI
What is the minimum percentage of shares an acquirer must hold to be considered as a ‘person acting in concert’ under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) 5%
B) 10%
C) 15%
D) 20%
Answer: B) 10%
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what is the maximum permissible time frame for dispatching the letter of offer to shareholders after SEBI’s approval?
A) 5 working days
B) 10 working days
C) 15 calendar days
D) 21 calendar days
Answer: C) 15 calendar days
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, who determines the offer price in case of a competing open offer?
A) SEBI
B) Target company’s board
C) Independent valuer
D) Shareholders’ committee
Answer: C) Independent valuer
Which of the following actions does not trigger an open offer obligation under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) Conversion of securities into shares
B) Acquisition of control over a mutual fund
C) Transfer of shares to an employee trust
D) Acquisition of shares in a delisted company
Answer: C) Transfer of shares to an employee trust
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what is the maximum permissible time frame for shareholders to accept an open offer?
A) 15 days
B) 21 days
C) 30 days
D) 45 days
Answer: B) 21 days
Which of the following entities is exempted from making an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) A financial institution acquiring shares for debt recovery
B) A foreign institutional investor acquiring shares in an Indian company
C) A promoter transferring shares to a family member
D) A venture capital fund acquiring shares for investment purposes
Answer: A) A financial institution acquiring shares for debt recovery
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, who is responsible for ensuring compliance with the minimum public shareholding norms during an open offer?
A) SEBI
B) Target company’s board
C) Stock exchanges
D) Acquirer
Answer: B) Target company’s board
What is the maximum permissible time frame for making the payment to shareholders who accept the open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) 7 working days
B) 10 working days
C) 15 working days
D) 21 working days
Answer: C) 15 working days
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, who can grant exemption from making an open offer in certain cases?
A) SEBI
B) Stock exchanges
C) Ministry of Corporate Affairs
D) Competition Commission of India
Answer: A) SEBI
Which of the following events does not require an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
A) Acquisition of shares through a rights issue
B) Transfer of shares between promoters
C) Acquisition of control over the target company
D) Merger of two listed companies
Answer: A) Acquisition of shares through a rights issue
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, what is the maximum permissible time frame for completing the open offer process after its announcement?
A) 30 calendar days
B) 45 calendar days
C) 60 calendar days
D) 75 calendar days
Answer: C) 60 calendar days
Which of the following entities is exempted from making an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, when acquiring shares through a preferential allotment?
A) Foreign institutional investor
B) Venture capital fund
C) Promoter of the target company
D) Strategic investor
Answer: C) Promoter of the target company
