JAIIB Exam 2025 – IE&IFS Important Questions MCQs Quiz-35

22/04/2025

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JAIIB Exam 2025 IE&IFS Important Questions MCQs Quiz-35

JAIIB Exam Quiz 2025: The JAIIB exam is scheduled for 2025 by IIBF. Here, we are providing JAIIB IE&IFS MCQ-based quizzes on a regular basis. You can attempt the quizzes regularly to prepare for the upcoming JAIIB exam. The quizzes will be provided module-wise and unit-wise. You can attempt the JAIIB IE&IFS quizzes from the links below and improve your preparation by practicing regularly. These quizzes will help you boost your score in the JAIIB exam and guide you to clear the exam on your first attempt.

Q.1 In which year did Grindlays Bank receive the merchant banking license from RBI?
A. 1970
B. 1967
C. 1972
D. 1973

Q.2 Which of the following banks started its merchant banking division in 1970?
A. Bank of India
B. Citibank
C. ICICI
D. Standard Chartered

Q.3 When did State Bank of India establish its Merchant Banking Division?
A. 1970
B. 1967
C. 1972
D. 1975

Q.4 What was the primary focus of SBI’s merchant banking division in the initial years?
A. International trade financing
B. Mutual funds
C. Corporate advice and assistance to small and medium entrepreneurs
D. Online banking services

Q.5 Which legislative change allowed commercial banks to offer a wider range of financial services through subsidiaries?
A. Indian Companies Act, 1956
B. SEBI Act, 1992
C. Banking Regulation Act, 1949 (amendment in mid-1980s)
D. FEMA Act, 1999

Q.6 Which of the following correctly distinguishes Merchant Banks from Commercial Banks in terms of regulatory authority and primary services?
A. Merchant Banks are regulated by RBI and deal with debt finance; Commercial Banks are regulated by SEBI and assist in equity financing.
B. Merchant Banks are regulated by SEBI and assist in equity financing; Commercial Banks are regulated by RBI and deal with debt finance.
C. Merchant Banks and Commercial Banks are both regulated by SEBI and focus on fee-based services.
D. Both are regulated by RBI and provide the same financial services.

Q.7 In terms of business orientation, which of the following statements is true?
A. Commercial Banks are project-oriented, while Merchant Banks are asset-oriented.
B. Merchant Banks are funding-based and Commercial Banks are fee-based.
C. Merchant Banks focus on management-oriented services like capital structuring, while Commercial Banks are primarily financiers.
D. Both Merchant Banks and Commercial Banks focus on the same services with different regulations.

Q.8 Which of the following statements about licensing requirements for Merchant Banks under SEBI regulations is correct?
A. A single SEBI registration allows a Merchant Bank to act as a Banker to the Issue, Debenture Trustee, and Portfolio Manager.
B. Merchant Banks do not require SEBI registration to render capital market intermediary services.
C. Merchant Banks can act as Debenture Trustees for their own clients without any restrictions
D. Separate SEBI registration certificates are required for Merchant Banker, Banker to the Issue, and Portfolio Manager activities.

Q.9 Which of the following best describes the scope of activities permitted for a Category I Merchant Banker under SEBI regulations?
A. Authorized to manage issues, prepare prospectuses, determine financial structures, and act as advisor, consultant, underwriter, and portfolio manager.
B. Only acts as a banker to the issue and collecting agent for ASBA applications.
C. Limited to underwriting and distribution of debt instruments.
D. Can only offer portfolio management services upon receiving RBI approval.

Q.10 Which of the following correctly matches the SEBI classification of Merchant Bankers with the scope of their permitted activities?
A. Category I – Advisor only; Category II – Issue Manager; Category III – Banker to the Issue; Category IV – Underwriter
B. Category I – Full issue management and advisory services; Category II – Co-manager, consultant, underwriter; Category III –
Underwriter, advisor; Category IV – Advisor or consultant only
C. Category I – Portfolio management only; Category II –Prospectus preparation and subscription refund; Category III –
Banker to the Issue; Category IV – Co-manager and advisor
D. Category I – Consultant only; Category II – Underwriter only; Category III – Issue Manager; Category IV – Full-service provider

Q.11 According to SEBI regulations, what is the minimum net worth requirement for an applicant seeking a Category I Merchant Banking license?
A. ₹1 crore
B. ₹2 crores
C. ₹5 crores
D. ₹10 crores

Q.12 Which of the following activities is not typically performed by Merchant Banks while managing debt and equity offerings?
A. Designing instruments and determining the number of stocks to be issued
B. Setting monetary policy and inflation targets
C. Compilation and filing of offer documents such as DRHP/RHP
D. Providing underwriting and marketing support for issues

Q.13 Which of the following is a key post-issue responsibility of Merchant Banks?
A. Determining the issue price and timing of the offering
B. Filing Draft Red Herring Prospectus with SEBI
C. Calculating underwriters’ liability in case of undersubscription
D. Auditing the financial statements of the issuer company

Q.14 Under SEBI regulations, what is the minimum underwriting obligation for a Category I Merchant Banker managing a public issue?
A. 10% of the issue or ₹50 lakhs, whichever is more
B. 15% of the total issue amount
C. 2% of the issue or ₹10 lakhs, whichever is more
D. 5% of the total underwriting commitment or ₹25 lakhs, whichever is less

Q.15 Which of the following factors should be most carefully scrutinized before accepting an underwriting assignment?
A. Availability of accounting software
B. Promoters’ track record, project viability, marketability, government policies, and capital market conditions
C. Number of shareholders in the company
D. Employee welfare programs and CSR initiatives

Q.16 Under SEBI regulations, when is it mandatory for a company issuing shares to appoint a Monitoring Agency?
A. Only if the issue is made through private placement
B. If the issue size exceeds ₹100 crores
C. If the issue size exceeds ₹500 crores
D. For all public issues, regardless of size

Q.17 Which of the following activities is strictly prohibited for a Merchant Bank and its employees during the course of an assignment, as per SEBI regulations?
A. Marketing of issue to institutional investors
B. Providing underwriting services
C. Buying or selling securities based on unpublished pricesensitive information of clients
D. Assisting in preparation of the prospectus

Q.18 Under Regulation 13 of the SEBI (Merchant Bankers) Regulations, 1992, which of the following is an essential aspect of the codes of conduct that Merchant Banks must follow?
A. They may use unpublished price-sensitive information for personal trading if disclosed to senior management.
B. They must ensure strict separation of their securities market activities from other unrelated business activities.
C. They are allowed to form associations with any financial institutions regardless of registration status.
D. They may deviate from the prescribed codes of conduct on a case-by-case basis

Answer:

Q1: B
Q2: B
Q3: C
Q4: C
Q5: C
Q6: B
Q7: C
Q8: D
Q9: A
Q10: B
Q11: C
Q12: B
Q13: C
Q14: D
Q15: B
Q16: C
Q17: C
Q18: B