In the context of dematerialization, what does ASBA stand for?

Application Supported by Bank Account

Application Supported by Blocked Account

Account Sharing and Banking Application

Asset Support and Banking Agreement

What is the role of a Depository Participant (DP) in dematerialization?

DP holds physical share certificates for investors.

DP issues new share certificates to investors.

DP converts physical shares into electronic format.

DP determines the valuation of shares.

What is the main purpose of an information memorandum?

To issue new shares in a company.

To provide a resume of the company to prospective investors.

To establish legal compliance for a company's operations.

To conduct internal audits of a company's financial records.

What advantage does dematerialization offer regarding share certificates?

Share certificates can be physically stored for security.

Investors receive dividend payments in physical form.

The risk of certificate loss and forgery is reduced.

Shareholders can transfer physical certificates to electronic format.

What is the purpose of issuing replacement share certificates in case of defacement or loss?

To provide additional certificates to shareholders.

To help shareholders trade shares more frequently.

To keep track of shareholders' stock transactions.

To ensure that shareholders can maintain their ownership records.

Which of the following is a key difference between an information memorandum and a prospectus?

An information memorandum is for internal company use only, while a prospectus is for external investors.

An information memorandum is regulated by the Companies Act, while a prospectus is not subject to any regulations.

An information memorandum is a commercial document, whereas a prospectus is a legal document.

An information memorandum is used exclusively by start-ups, while a prospectus is used by established companies.

In the context of share certificates, what is meant by "nominal value"?

The face value of the shares as per the company's articles.

The current market price of the shares.

The amount paid by shareholders for the shares.

The dividend paid to shareholders annually.

When can shareholders apply through the ASBA process for a rights issue?

Only if they hold shares in physical form.

If they have renounced their entitlements.

If they have applied for entitlements in dematerialized form.

Only if they have a Demat account with the depository.

What is the significance of the Company's Common Seal in the context of share certificates?

It indicates that the shares have been fully paid.

It confirms the authenticity of the certificate.

It represents the company's ownership of the shares.

It signifies that the shares can be freely traded.

What is the purpose of the Depository Participant (DP) in the depository system?

To regulate the prices of shares in the market.

To hold the securities of shareholders in electronic form.

To provide financial advice to investors.

To issue physical share certificates to investors.

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