πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!

  • google app store apple app store
  • βœ–

      Question

      In the Indian debt market, which of the following is a

      key intermediary that guarantees the subscription of a bond issue?
      A Depository Participant (DP) Correct Answer Incorrect Answer
      B Credit Rating Agency (CRA) Correct Answer Incorrect Answer
      C Merchant Banker Correct Answer Incorrect Answer
      D Underwriter Correct Answer Incorrect Answer
      E Registrar and Transfer Agent (RTA) Correct Answer Incorrect Answer

      Solution

      An Underwriter (often a merchant bank or financial institution) guarantees to purchase any unsold portion of a security issue. This ensures that the issuing company raises the intended amount of capital, transferring the subscription risk from the issuer to the underwriter. A CRA (B) provides credit ratings, a DP (A) interfaces with investors for demat accounts, and an RTA (E) maintains investor records.

      Practice Next
      ask-question