question_answer

Direction: In each of the given questions an inference is given in bold which is then followed by three statements. You have to find the statement(s) from where it is inferred. Choose the option with the best possible outcome as your choice.

All efforts are made to allot shares to HNI.

(I) Initial public offers (IPOs) are one of the most- sought - after avenues by high net-worth individuals (HNI) for earning quick bucks. They are allotted shares on a proportionate basis and are sure of getting allotments unlike retail investors, who may or may not get allotments in an IPO.

(II) That is, if an HNI has applied for 100,000 shares and the IPO is oversubscribed 50 times, then 2000 shares (100,000/50) will be allotted in this case. So HNIs tend to apply for more shares to fetch a reasonable number of shares, in case the IPO is oversubscribed.

(III) Many non-banking financial institutions (NBFIs) offer special loans for enabling such subscription, popularly known as ' IPO Financing'. Edelweiss' ECL Finance, Aditya Biria Finance and Axis Finance are among those offering such products to HNIs.

A)  Only (I)      

B)  Only (II)     

C)  Only (III)

D)  Both (II) and (III)     

E)  All (I), (II) and (III)