Directions (1-7): Read the following passage and answer the following questions.
Government plans to amend IBC to ring-fence
buyers of stressed assets from prosecution. While the amendments will help
ring-fence buyers, aspects like cross-border insolvency remain to be
addressed. The recent amendments to the
Insolvency and Bankruptcy Code (IBC) approved by the Union Cabinet can go a
long way in addressing some of the gaps in the resolution process. Crucially,
the proposed Bill has sought to provide a clean slate to buyers of stressed
assets, by shielding them from prosecution for offences by previous promoters.
By way of insertion of Section 32A in the Code,
the amendment seeks to provide immunity to the corporate debtor and its assets,
from an offence committed prior to the commencement of the insolvency process.
In other words, it seeks to ring-fence the corporate debtor and property from
offences committed by the previous management or promoters. At a time when
there have been growing concerns over investigative agencies initiating action
against companies after the completion of the resolution process (Bhushan Power
and Steel), the amendment offers much needed clarity and relief to prospective
buyers. At the same time, the Bill requires the corporate debtor or other
persons to extend cooperation to investigating authorities. Importantly, the
immunity will only apply in cases where the resolution plan has resulted in a
change in management or control of the corporate debtor. While the amendment
seeks to release the corporate debtor from the liability of the offence, it
continues to hold the concerned persons responsible for the offences and they
can be prosecuted.
In a bid to check frivolous insolvency applications, the Bill also seeks to raise the
minimum threshold for initiating the process, in the case of financial
creditors represented by an authorised representative. In the case of
home-buyers for instance, the application for initiating insolvency process has
to be filed by at least 100 creditors or 10 per cent of such creditors,
whichever is lower. The Bill also clarifies that licences, permits, concession,
clearances, etc., in force cannot be suspended or terminated during the
moratorium period, provided there is no default in payment of dues. This is
critical to ensure that the company is maintained as a going concern and value is
preserved. The Bill has also sought to allow the resolution professional to
continue to manage the company in case the process is delayed beyond the
330-day deadline.
While the recent amendments and the Supreme
Court ruling in the Essar Steel case
upholding the rights of the secured creditors,
should help smoothen the IBC process, there are several other aspects that
require closer scrutiny. To curb frivolous insolvency applications, increasing
the default threshold — currently at
a mere ₹1 lakh — is critical. The Bill did not include the much awaited cross
border insolvency framework, which is imperative to deal with cases like the
Nirav Modi scam. The global web of shadow entities Nirav Modi used for
perpetrating the $4 billion fraud, only goes to show how lenders or government
agencies may be incapable of recovering anything in such cases. Holding
defaulters responsible in the eyes of the law is one thing; bringing them to
book is another thing altogether.
Q1. What protection do the IBC amendments provide
to customers of bad loans?
(a) Protecting buyers from getting prosecuted
for the offences committed by previous promoters.
(b) Giving them a clean slate to write on
(c) Addressing the issues of buyers to get
better returns
(d) Bringing changes in the amendments to
benefits banks
(e) None of these
Q2. On what condition does the bill provide
immunity to the corporate debtor and property?
(a)
Giving a clarity to the potential victims
(b) Change in management or control from the
corporate debtor due to the resolution plan
(c) Commencing the insolvency process
(d) Need of extension in cooperation from the
debtors’ side
(e) None of these
Q3. How does the Bill deals with the senseless
insolvency applications?
(a) Initiating the process without any
paper-work
(b) Paving way for the authorized
representatives
(c) Mandate to file insolvency application by
around 10% of home-buyers
(d) Uplifting the minimum limits in order to
begin the process
(e) Both (b) and (c)
Q4. What are the guidelines of the Bill in case
of no payment dues during moratorium period?
(a) Non-termination and Non-Suspension of
Licenses, concession, permits etc. forcibly
(b) Lowering the suspension rates
(c) Maintenance of values and concerns
(d) Both (b) and (c)
(e) None of these
Q5. What are the issues that still need to be
addressed?
(a) Non-inclusion of framework for cross-border
insolvency
(b) Curbing the senseless insolvency by
increasing the default limit from 1Lakh.
(c) Both (a) and (b)
(d) Bringing the defaulters before the law
(e) None of these
Q6. Which of the following words is most
similar in meaning with the FRIVOLOUS highlighted
in the passage?
(a) Serious
(b) Flippant
(c) Genuine
(d) Practical
(e) None of these
Q7. Which of the following words is most
opposite in meaning with the THRESHOLD highlighted
in the passage?
(a) Allowance
(b) Enhanced
(c) Concentrated
(d) Magnitude
(e) None of these
Q8. In each
of the following questions, four sentences are given out of which one may or
may not have grammatical errors. Choose the sentence having grammatical error
as your answer. If all the given statements are correct grammatically, mark
your answer as; (E)[All are correct].
(a) Pawan Kumar Goenka has been re-appointed the
managing director at M&M
(b) Fitch expects the RBI to cut its policy
rate to another 65 basis points in 2020
(c) Gopinath stressed on the need for finding
new revenue streams to balance any scaling up of public spending.
(d) The Modi administration has taken several
steps in recent months to counter the slowdown.
(e) All are correct
Q9. In
each of the following questions, four sentences are given out of which one may
or may not have grammatical errors. Choose the sentence having grammatical
error as your answer. If all the given statements are correct grammatically,
mark your answer as; (E)[All are correct].
(a) The RBI provided monetary stimulus by way
of lowering its benchmark policy rates
(b) Official data released earlier this month
showed that the industrial sector remained weak with output shrinking 3.8% in
October.
(c) Despite Donald Trump at the helm, US
remains one pillar of the Modi Doctrine of foreign policy.
(d) If protesters are indeed out to defend the
Constitution, then they must adheres to it.
(e) All are correct
Q10. In
each of the following questions, four sentences are given out of which one may
or may not have grammatical errors. Choose the sentence having grammatical
error as your answer. If all the given statements are correct grammatically,
mark your answer as; (E)[All are correct].
(a) From the statements of India’s top leaders,
it appears that the government will not relent on the CAA
(b) There have been ugly incidents of arson and
stone-hurling by miscreants in various parts of India.
(c) The job of law enforcers here is to
ensure that civil order is not disturb.
(d) As many as 20 Delhi Metro stations were
reportedly shut, while many students, civilians and leaders were hauled off by
the police.
(e) All are correct
Q11. In
each of the following questions, four sentences are given out of which one may
or may not have grammatical errors. Choose the sentence having grammatical
error as your answer. If all the given statements are correct grammatically,
mark your answer as; (E)[All are correct].
(a) Billionaires owe their billions not just to
their market success but also the helping hand of the law.
(b) Economic inequality has moving to the top
of the political agenda in many countries, including free-market poster
children like the US and the UK.
(c) To be sure, there are good reasons for
states to adopt laws that empower private agents to reap the rewards of
innovation and business success.
(d) Many see CAA as unconstitutional,
given its use of religion as an eligibility criterion for citizenship.
(e) All are correct
Q12. In
each of the following questions, four sentences are given out of which one may
or may not have grammatical errors. Choose the sentence having grammatical
error as your answer. If all the given statements are correct grammatically,
mark your answer as; (E)[All are correct].
(a) In 1985, the estate duty law was abolished
on the grounds of high implementation cost and administrative problems versus
meagre estate duty collection.
(b) Hero Motocorp Ltd is the country’s largest
two-wheeler maker, enjoying about half the market share with a dominant in
motorcycles.
(c) We are embarking on a process of
simplifying, synergising and scaling (3S) to create an agile, powerful
platform.
(d) It seems that while the goal was the same, the
paths chosen were different.
(e) All are correct
Q13. In
each of the following questions, four sentences are given out of which one may
or may not have grammatical errors. Choose the sentence having grammatical
error as your answer. If all the given statements are correct grammatically,
mark your answer as; (E)[All are correct].
(a) Suspending the order of Mistry’s
reinstatement for four weeks gives Tata Sons time to appeal the order before
the Supreme Court.
(b) The auto sector pain has indeed been the
culprit behind the sharp slowdown in loan growth.
(c) IndusInd Bank is targeting 18-20% growth in
vehicle finance, which form more than a quarter of its loan book.
(d) Heightened risks to pharmaceutical sector
are likely because of an increase in the number of US FDA (food and drug
administration) inspections.
(e) All are correct
Q14. In
each of the following questions, four sentences are given out of which one may
or may not have grammatical errors. Choose the sentence having grammatical
error as your answer. If all the given statements are correct grammatically,
mark your answer as; (E)[All are correct].
(a) What could stand in good stead for the
sector is its control on costs, with the added element of curtailing capacity
expansion.
(b) Given the heavy and looming overhangs, such
high earnings growth could be at risk.
(c) If domestic pricing pressures increasingly,
margins and profitability could be eroded.
(d) Hero cannot find relief in exports where
the BS-VI emission rules are not applicable.
(e) All are correct
Q15. In
each of the following questions, four sentences are given out of which one may
or may not have grammatical errors. Choose the sentence having grammatical
error as your answer. If all the given statements are correct grammatically,
mark your answer as; (E)[All are correct].
(a) Indian economy has decelerated to a
six-and-half-year low of 4.5% in the September quarter owing to sharp slowdown
in consumption demand.
(b) Our country has capability to come out
stronger from such situations and it will
(c) Assuring the industry of further action to
remove criminal provisions in the Companies Act, Modi said business failure is
not a crime.
(d) Valuations are not demanding, but
acceleration in revenue growth trajectory with margin improvement would be
keyed to drive further rerating.
(e) All are correct
Solutions
S1. Ans. (a)
Sol. Refer to the first paragraph, the hint can
be drawn from the lines, the proposed
Bill has sought to provide a clean slate to buyers of stressed assets, by
shielding them from prosecution for offences by previous promoters.
Hence, option
(a) is the right answer choice.
S2. Ans. (b)
Sol. Refer to the second paragraph, the hint
can be drawn from the lines, Importantly,
the immunity will only apply in cases where the resolution plan has resulted in
a change in management or control of the corporate debtor.
Hence, option
(b) is the right answer choice.
S3. Ans. (e)
Sol. Refer to the third paragraph, the hint can
be drawn from the lines, In a bid to
check frivolous insolvency applications, the Bill also seeks to raise the
minimum threshold for initiating the process, in the case of financial
creditors represented by an authorised representative. In the case of
home-buyers for instance, the application for initiating insolvency process has
to be filed by at least 100 creditors or 10 per cent of such creditors,
whichever is lower.’
Hence, option
(e)[Both (b) and (c)] is the right answer choice.
S4. Ans. (a)
Sol. Refer to the third paragraph, the hint can
be drawn from the lines, The Bill also
clarifies that licences, permits, concession, clearances, etc., in force cannot
be suspended or terminated during the moratorium period, provided there is no
default in payment of dues. This is critical to ensure that the company is
maintained as a going concern and value is preserved.
Hence, option
(a) is the right answer choice.
S5. Ans. (c)
Sol. Refer to the last paragraph of the
passage, the hint can be drawn from the lines, While the recent amendments and the Supreme Court ruling in the Essar
Steel case upholding the rights of the secured creditors, should help smoothen
the IBC process, there are several other aspects that require closer scrutiny.
To curb frivolous insolvency applications, increasing the default threshold —
currently at a mere ₹1 lakh — is critical. The Bill did not include the much
awaited cross border insolvency framework, which is imperative to deal with
cases like the Nirav Modi scam.
Hence, option
(c)[Both (a) and (b)] is the right answer choice
S6. Ans. (b)
Sol. flippant
is the most similar in meaning with the given word. Hence, option (b) is the right answer choice.
S7. Ans. (d)
Sol. Magnitude
is the most opposite in meaning with the given word. Hence, option (d) is the right answer choice.
S8. Ans. (b)
Sol. ‘by’
will be used instead of ‘to’. Hence,
option (b) is the right answer choice.
S9. Ans. (d)
Sol. ‘Adheres’
will be replaced by ‘adhere’. Hence,
option (d) is the right answer
choice.
S10. Ans. (c)
Sol. ‘Disturb’
will be replaced by ‘Disturbed’. Hence,
option (c) is the right answer
choice.
S11. Ans. (b)
Sol. ‘Moving’
will be replaced by ‘Moved’. Hence,
option (b) is the right answer choice.
S12. Ans. (b)
Sol. ‘Dominant’
will be replaced by ‘Dominance’. Hence,
option (b) is the right answer choice.
S13. Ans. (c)
Sol. ‘form’
will be replaced by ‘forms’. Hence,
option (c) is the right answer
choice.
S14. Ans. (c)
Sol.‘increasingly’
will be replaced by ‘increasing’. Hence,
option (c) is the right answer
choice.
S15. Ans. (d)
Sol. ‘Keyed’
will be replaced by ‘key’ in the
sentence (d). hence, option (d) is
the right answer choice.
English Quizzes For SBI PO Mains 2023 - ...
