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Business Studies

SEBI Functions

SEBI has stop...

Question

SEBI has stopped the practice of making a preferential allotment of shares unrelated to market prices.

A

True

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B

False

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Solution

The correct option is A True
SEBI has stopped the practice of making a preferential allotment of shares unrelated to market prices- this is a true statement. It is done in order to protect the interests of the investors. SEBI regulates the business in stock exchange. It helps to provide the safety of the investment.

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Q. According to SEBI guideline a company must receive a minimum of _______% subscription before making any allotment of shares to the public.

Q. Allotment of shares must be made after getting subscription against the entire public issue as per SEBI guidelines.

Allotment of shares or debentures must be made after getting ____________ subscription against entire public issue as per SEBI guidelines.

Q. A company invited applications for certain number of equity shares and received applications for more number of shares along with the applications money. Which of the following alternative can be followed?
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