Companies Act MCQ Part 2 for SEBI Grade A

May 28, 2020
SEBI Grade A Test Series

Dear aspirants,
We are presenting you the Companies Act MCQ Part 2 for SEBI Grade A Companies Act Section of the exam.

Companies Act MCQ Part 1 for SEBI Grade A

Q1. The Companies Act 2013 has been divided into ______ Chapters and _____ Sections?

  1. 27 Chapters and 461 Sections
  2. 27 Chapters and 470 Sections
  3. 29 Chapters and 461 Sections
  4. 29 Chapters and 470 Sections

Answer: (2)
The Companies Act 2013 Act is divided into 29 chapters containing 470 sections

Q2. The Companies Act 2013 has _____ Schedules

  1. Seven
  2. Six
  3. Five
  4. Four

Answer: (1)
The Companies Act 2013 Act has seven schedules

Q3. The Chapter III of Companies Act 2013 is related to _______?

  1. Incorporation of Company
  2. Share Capital and Debentures
  3. Declaration and Payment Of Dividend
  4. Prospectus and Allotment Of Securities

Answer: (4)
The Chapter III of Companies Act 2013 is related to Prospectus and Allotment of Securities

Q4. The Companies Act2013 was enacted on ______

  1. 27th August 2013
  2. 28th August 2013
  3. 29th August 2013
  4. 30th August 2013

Answer: (3)
The Companies Act, 2013 passed by the Parliament has received the assent of the President of India on 29th August, 2013.

Q5. Which among the following securities need not to be issued through prospectus?

  1. IPO of Public Company
  2. Securities of Private Company
  3. FPO of Public Company
  4. Employee Stock Option of Public Company

Answer: (2)
A Private Company needs not to issue prospectus

Q6. A Private Company cannot issue securities through _______?

  1. IPO
  2. Right Issue
  3. Bonus Issue
  4. Private Placement

Answer: (1)
A private company may issue securities by way of rights issue or bonus issue or through private placement. Only public company can issue securities through IPO or FPO.

Q7. Who has the power to regulate issue and transfer of securities?

  1. Reserve Bank of India
  2. MCA
  3. ICSI
  4. Securities and Exchange Board of India

Answer: (4)
Issue and transfer of securities and non-payment of dividend by listed companies or those companies which intend to get their securities listed on any recognised stock exchange in India be administered by the Securities and Exchange Board of India.

Q8. Every prospectus issued by a public company should contain reports related to profits and losses for immediately ________ preceding financial years.

  1. Six
  2. Five
  3. Four
  4. Three

Answer: (2)
The prospectus should contain reports relating to profits and losses for each of the five financial years immediately preceding the financial year of the issue of prospectus including such reports of its subsidiaries. However in case period of five years has not elapsed from the date of incorporation, the prospectus should contain the reports relating to profits and losses for each of the financial years immediately preceding the financial year of the issue of prospectus

Q9. A prospectus is valid within _____ days after the copy of prospectus is delivered to Registrar of Companies (RoC).

  1. 30
  2. 45
  3. 60
  4. 90

Answer: (4)
No prospectus shall be valid if it is issued more than ninety days after the date on which a copy thereof is delivered to the Registrar of Companies (RoC)

Q10. What is the minimum fine that can be imposed on a company if a prospectus is issued in contravention of the provisions Section 26 of Companies Act 2013?

  1. Rs 50,000
  2. Rs 1,00,000
  3. Rs 2,00,000
  4. Rs 3,00,000

Answer: (1)
If a prospectus is issued in contravention of the provisions of section 26 of Companies Act 2013, the company shall be punishable with fine which shall not be less than fifty thousand rupees

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