n NISM Certifications
XV NISM Series XV
Medium

Identify the true statement about Reverse Book Building.

Practice question from NISM XV Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Promoter sets floor and ceiling

  2. Promoter sets floor, shareholders quote higher price

    Correct answer

  3. C

    Company cannot cancel delisting

  4. D

    Promoter must accept all bids

Why this is the answer

Under SEBI rules, promoters set a minimum price, and shareholders tender bids at prices they accept. This determines the final delisting price through a transparent mechanism.

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