Economics · SEBI Regulations
Consider the following details regarding the primary market operations and SEBI regulations for public issues in India: Statement 1: In a Book Building process, the final 'Cut-off Price' is determined based on the demand received from various categories of investors within an offered price band. Statement 2: 'Anchor Investors' are a subset of Qualified Institutional Buyers who apply for a value of at least 10 crore rupees in a public issue. Statement 3: A 'Green Shoe Option' is a price stabilization mechanism in an IPO where the company can over-allot shares up to 15 percent of the issue size. Statement 4: The 'Minimum Subscription' requirement for a public issue is 90 percent of the total issue size as specified by SEBI. Determine the validity of the provided statements.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Statement 4 is incorrect because the limit is 75 percent.
- 2All statements 1, 2, 3, and 4 are correct.✓
- 3Statements 1, 2, and 4 are correct; Statement 3 is incorrect.
- 4Only Statement 1 is correct.
Correct answer
All statements 1, 2, 3, and 4 are correct.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice SEBI Regulations MCQs →Want more practice questions on SEBI Regulations?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · SEBI Regulations