SEBI Regulations: Share Acquisition and Takeovers
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Questions and Answers

In which countries did the concept of takeover emerge in the late 19th century?

  • India and Australia
  • Japan and China
  • UK and US (correct)
  • Germany and France
  • What is the main legislation governing takeovers in India?

  • Companies Act, 2013 (correct)
  • SEBI Act, 2011
  • Takeover Regulations, 2011
  • All of the above
  • What replaced the Securities and Exchange Board of India (Substantial Acquisitions of Shares and Takeovers) Regulations, 1997?

  • Takeover Regulations, 2011 (correct)
  • The Companies Act, 2013
  • SAST Regulations, 2015
  • SEBI Act, 2011
  • When did the concept of takeover emerge in India?

    <p>Early 20th century</p> Signup and view all the answers

    Who is the guidance of the project report on takeover code?

    <p>CS MEHUL RAJESHBHAI THAKKAR</p> Signup and view all the answers

    Which section of the Companies Act, 2013 deals with the acquisition of shares through a company?

    <p>Section 186</p> Signup and view all the answers

    What is the FCS number of CS MEHUL RAJESHBHAI THAKKAR?

    <p>9568</p> Signup and view all the answers

    What is the purpose of SEBI (SAST) Regulations, 2011?

    <p>To provide guidelines for acquisition of majority shares or controlling interest in another company</p> Signup and view all the answers

    What is the term used to describe the company being purchased in a takeover?

    <p>Target company</p> Signup and view all the answers

    What is the requirement for a public shareholder seeking to re-classify itself as a promoter?

    <p>To make an open offer in accordance with SEBI (SAST) Regulations, 2011</p> Signup and view all the answers

    Which of the following is a method of takeover?

    <p>Purchasing a majority stake in the target firm</p> Signup and view all the answers

    What is the term used to describe the company making a successful bid to assume control of or acquire another company?

    <p>Acquirer</p> Signup and view all the answers

    What is the likely consequence of the new regulation for promoters with low shareholding and high public float?

    <p>They will have less flexibility to increase their shareholding.</p> Signup and view all the answers

    What is the main benefit of the acquirer holding more than 50% stake in a company?

    <p>They can pass simple corporate law resolutions without depending on other shareholders.</p> Signup and view all the answers

    What is the purpose of introducing the concept of voluntary offer for 10% stake?

    <p>To facilitate consolidation of holdings in excess of 5% by substantial shareholders.</p> Signup and view all the answers

    What is the increased initial threshold for open offers according to the new regulation?

    <p>25%</p> Signup and view all the answers

    What is the maximum permissible level of promoter shareholding according to the new regulation?

    <p>75%</p> Signup and view all the answers

    What is the consequence of the reduction of public float due to the new regulation?

    <p>Decrease in trading volumes and reflection of real market price of scrips.</p> Signup and view all the answers

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