<<1234567891011121314151617181920>> 1. GDRs represent...............?Debt issued by an Indian entity in the form of tradable receipts.Equity issued by overseas entities, listed on domestic bourses.Negotiable Receipts issued by an overseas depository representing pre-fixed number of equity shares of an Indian entity.Debentures issued by an Indian Company which are convertible into fixed number of equity shares at a future date.Question 1 of 20 2. IDs are denominated in..........?Home Currency of Issuing CompanyIndian RupeeUS DollarsAny freely convertible currencyQuestion 2 of 20 3. ECBs can be raised in..............?US Dollars onlyIndian Rupee onlyHome Currency of InvestorAny freely convertible currency including Indian RupeeQuestion 3 of 20 4. Which of the following is NOT TRUE in respect of Trade Credits?Domestic Banks cannot guarantee repayment of Trade CreditsMaximum maturity of TC for import of capital goods is three yearsMaximum maturity of TC for import of non-capital goods is lesser of one year or operating cycleThe all-in-cost ceiling for Trade Credits is benchmark plus 250 basis pointsQuestion 4 of 20 5. What is the definition of "Foreign Direct Investment (FDI)" as per the Foreign Exchange Management Act, 1999 (FEMA)?Investment made by a person resident outside India in any Indian companyInvestment made by a person resident outside India in a listed Indian companyInvestment made by a person resident outside India in an unlisted Indian companyInvestment made by a person resident outside India in government bondsQuestion 5 of 20 6. What is the criterion for an investment to be classified as "Foreign Portfolio Investment"?Investment less than 5% of the post issue paid-up equity capital on a fully diluted basis of a listed Indian companyInvestment less than 10% of the post issue paid-up equity capital on a fully diluted basis of a listed Indian companyInvestment less than 15% of the post issue paid-up equity capital on a fully diluted basis of a listed Indian companyInvestment less than 20% of the post issue paid-up equity capital on a fully diluted basis of a listed Indian companyQuestion 6 of 20 7. Under what circumstances does an investment by a person from Bangladesh or Pakistan require prior Government approval?For investment in any sector/ activity in IndiaFor investment in defence and space sectors onlyFor investment in sectors other than defence, space, atomic energy, and prohibited sectorsFor investment in Lottery Business and Gambling and Betting activities onlyQuestion 7 of 20 8. What do Global Depository Receipts (GDRs) represent?Shares issued by a foreign companyReceipts issued by a depository abroad, entitling the holder to convert into specified number of equity shares of an Indian CompanyCertificates representing ownership of gold reservesBonds issued by the Indian governmentQuestion 8 of 20 9. Who bears the exchange risk on Global Depository Receipts (GDRs)?Indian CustodianIndian CompanyOverseas investorSEBIQuestion 9 of 20 10. How does the issuance of GDRs affect the Debt Equity Ratio of the issuing company?Increases the Debt Equity RatioDecreases the Debt Equity RatioDoes not affect the Debt Equity RatioDebt Equity Ratio becomes negativeQuestion 10 of 20 11. What is the purpose of the limited two-way fungibility scheme for ADRs/GDRs?To restrict the conversion of ADRs/GDRs into underlying sharesTo allow reissuance of ADRs/GDRs beyond the original issuance levelTo regulate the purchase of ADRs/GDRs by SEBI registered Stock BrokersTo maintain the total outstanding shares under the GDR issuance at the same levelQuestion 11 of 20 12. Where are American Depository Receipts (ADRs) traded?Only in IndiaOnly in the USIn both India and the USIn other overseas markets except the USQuestion 12 of 20 13. Which of the following companies can issue Indian Depository Receipts (IDRs)?Only companies incorporated in IndiaOnly companies incorporated outside IndiaBoth companies incorporated in India and outside IndiaOnly companies registered with SEBIQuestion 13 of 20 14. What currency are Indian Depository Receipts (IDRs) denominated in?US dollarsEurosJapanese YenIndian Rupees onlyQuestion 14 of 20 15. Who is eligible to purchase, hold, or sell IDRs?Only Indian residentsOnly foreign institutional investors (FPIs)Only non-resident Indians (NRIs) or overseas citizens of India (OCIs)Both b and cQuestion 15 of 20 16. What is the overall cap for raising capital by issuance of IDRs by eligible foreign companies in Indian markets?USD 1 billionUSD 5 billionUSD 10 billionNo limitQuestion 16 of 20 17. When can IDRs be redeemed into underlying equity shares of the issuing company?Immediately after issuanceAfter six months from the date of issueAfter one year from the date of issueAfter three years from the date of issueQuestion 17 of 20 18. What is the permissible period for holding underlying shares by other persons resident in India after conversion of IDRs?15 days30 days60 days90 daysQuestion 18 of 20 19. Which regulatory authority monitors the overall cap for raising capital by issuance of IDRs?RBISEBIMinistry of FinanceIIBFQuestion 19 of 20 20. What happens to the FEMA provisions upon redemption of IDRs by the FPIs?They are not applicableThey become more stringentThey are relaxedThey are abolishedQuestion 20 of 20 Loading...
