Homework answers / question archive / A) In a public issue process, the due diligence on the issuer company is performed by: (a) The auditor                         (b) The private equity investors (c) QIBs                                   (d) The Underwriters (e) The Prime Lead Manager (f) The Co-lead manager (g) The BRLM (h) The lead manager responsible for pre-issue process (i) The lead manager responsible for post-issue process

A) In a public issue process, the due diligence on the issuer company is performed by: (a) The auditor                         (b) The private equity investors (c) QIBs                                   (d) The Underwriters (e) The Prime Lead Manager (f) The Co-lead manager (g) The BRLM (h) The lead manager responsible for pre-issue process (i) The lead manager responsible for post-issue process

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A) In a public issue process, the due diligence on the issuer company is performed by:

(a) The auditor                         (b) The private equity investors

(c) QIBs                                   (d) The Underwriters

(e) The Prime Lead Manager (f) The Co-lead manager

(g) The BRLM

(h) The lead manager responsible for pre-issue process

(i) The lead manager responsible for post-issue process.

B) A company proposes to issue rights of shares in the ratio of 1:1. Every right share will also have a NCD tagged along at a face value of `100. Shareholders have to take the NCD compulsorily if they wish to take the share. This has the following implications:

(a) The rights issue will be held invalid.

(b) The company will be prosecuted for restrictive practice

(c) The merchant banker will be held negligent of due diligence

(d) Directors of the company will be held liable in personal capacity

(e) Investors can demand refund of money.

(f) The rights issue is valid.