New Click here to Enroll for SIDBI MSME Expert Class by ex-GM, SBI on Nov 24

    Register

    Question

    The Finance Ministry has invited bids for the empanelment of merchant bankers and legal advisors for assisting the government in CPSE disinvestment transactions undertaken through OFS and stock market dribbling.With  respect to the information mentioned above, which of the following statements is/are true ?

    I.To be eligible for empanelment in the A++ category, which is an OFS transaction size of more than Rs 2,000 crore, interested merchant bankers would be required to have completed at least one equity market transaction of the size of Rs 1000 crore.

    II.For empanelment for managing OFS transaction size of Rs 750 crore to Rs 2,000 crore (A+), and less than Rs 750 crore (A), the interested merchant banker would be required to have managed at least one capital market transaction of Rs 750 crore and Rs 500 crore respectively between April 2020 and till now.

    III.In the fourth category, which is B, interested merchant bankers would be involved in the sale of CPSE shares on the stock exchanges (Dribbling).

    IV.The minimum experience for bidders in this category would be of five years in share broking. The bidder should have a minimum net worth (including that of its parent entity) of at least Rs 25 crore.

    A Only I,II & III Correct Answer Incorrect Answer
    B Only III & IV Correct Answer Incorrect Answer
    C Only II,III & IV Correct Answer Incorrect Answer
    D Only I & IV Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    The Finance Ministry has invited bids for the empanelment of merchant bankers and legal advisors for assisting the government in CPSE disinvestment transactions undertaken through OFS and stock market dribbling.The bids have been invited in four categories — A++, A+, A and B, based on the size of the transaction. To be eligible for empanelment in the A++ category, which is an OFS transaction size of more than Rs 2,000 crore, interested merchant bankers would be required to have completed at least one equity market transaction of the size of Rs 2,000 crore. For empanelment for managing OFS transaction size of Rs 750 crore to Rs 2,000 crore (A+), and less than Rs 750 crore (A), the interested merchant banker would be required to have managed at least one capital market transaction of Rs 750 crore and Rs 500 crore respectively between April 2020 and till now. In the fourth category, which is B, interested merchant bankers would be involved in the sale of CPSE shares on the stock exchanges (Dribbling). The minimum experience for bidders in this category would be five years in share broking. The bidder should have a minimum net worth (including that of its parent entity) of at least Rs 25 crore.

    Practice Next

    Relevant for Exams: