n NISM Certifications
X NISM Series X
Medium

An investor bids Rs.50 in a book-built issue where the discovered cut-off price is Rs.60. What is the likely outcome?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Full allotment of shares

  2. B

    Proportional allotment based on oversubscription

  3. C

    Shares allotted at Rs.50

  4. No allotment of shares

    Correct answer

Why this is the answer

Bidding below the cut-off price results in rejection and no share allotment.

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