This Paper has 50 answerable questions with 0 answered.
| Roll No……… | |
| Time allowed : 3 hours | Maximum marks : 100 |
| Total number of questions : 8 | Total number of printed pages : 2 |
| NOTE : Answer SIX questions including Question No.1 which is compulsory. |
| 1. | (a) | State, with reasons in brief, whether the following statements are true or false : | ||||||||
| (i) | Corporate governance is a system by which stock exchanges are generally directed and controlled. | (0) | ||||||||
| (ii) | A company cannot buy–back its securities listed at a stock exchange. | (0) | ||||||||
| (iii) | Shareholders of tracking stocks have a financial interest in a company as a whole. | (0) | ||||||||
| (iv) | Money market instruments do not include any equities. | (0) | ||||||||
| (2 marks each) | ||||||||||
| (b) | Choose the most appropriate answer from the given options in respect of the following : | |||||||||
| (i) | A stock exchange is granted recognition under — (a) The Companies Act, 1956 (b) The Securities Contracts (Regulation) Act, 1956 (c) The Securities and Exchange Board of India Act, 1992 (d) The Depositories Act, 1996. | (0) | ||||||||
| (ii) | A compliance officer appointed under clause 47 of the listing agreement can be — (a) A Company Secretary (b) A Chartered Accountant (c) A Cost Accountant (d) Any of the above. | (0) | ||||||||
| (iii) | Intermediaries which do not belong to primary market is — (a) Lead Manager (b) Stock Broker (c) Transfer Agent (d) Underwriter. | (0) | ||||||||
| (iv) | Settlement basis for fixed income securities and government securities is — (a) T+1 (b) T+2 (c) T+3 (d) R+5 | (0) | ||||||||
| (v) | Delivery that does not take place at a stock exchange is – (a) Auto delivery (b) Hand delivery (c) Special delivery (d) Spot delivery. | (0) | ||||||||
| (vi) | A mutual fund is set-up in the form of – (a) Board (b) Company (c) Cooperative bank (d) Trust. | (0) | ||||||||
| (1 mark each) | ||||||||||
| (c) | Re–write the following sentences after filling–up the blank space with appropriate word(s)/figure(s) so as to convey the correct meaning : | |||||||||
| (i) | Regulation 7 of the SEBI (Merchant Bankers) Regulations, 1992 prescribes that the capital adequacy norm for a merchant banker shall be net worth of not less than Rs._____________ . | (0) | ||||||||
| (ii) | Close ended mutual fund schemes have _____________ corpus. | (0) | ||||||||
| (iii) | _____________ is an independent person appointed to hear and act upon citizens complaints about government services. | (0) | ||||||||
| (iv) | A double option called _____________ is a combination of one put option and one call option with a common striking price and common expiry date. | (0) | ||||||||
| (v) | _________ debentures are those debentures which do not carry any charge on the assets of the company. | (0) | ||||||||
| (vi) | The capital market segment of National Stock Exchange (NSE) provides a fully automated screen based trading system known as _____________. | (0) | ||||||||
| (1 mark each) | ||||||||||
| 2. | Write short notes on any four of the following : | |||||||||
| (i) | Rolling settlement | (0) | ||||||||
| (ii) | Whistle blower policy | (0) | ||||||||
| (iii) | Indian depository receipt | (0) | ||||||||
| (iv) | Money market mutual funds (MMMF) | (0) | ||||||||
| (v) | Straight through processing (STP). | (0) | ||||||||
| (4 marks each) | ||||||||||
| 3. | (a) | Distinguish between any two of the following : | ||||||||
| (i) | ‘On–line surveillance’ and ‘off–line surveillance’. | (0) | ||||||||
| (ii) | ‘Money at call’ and ‘money at short notice’. | (0) | ||||||||
| (iii) | ‘Immobilisation’ and ‘dematerialisation’. | (0) | ||||||||
| (4 marks each) | ||||||||||
| (b) | What is a ‘foreign currency convertible bond’ (FCCB) ? Explain its important features. | (0) | ||||||||
| (4 marks) | ||||||||||
| (c) | What is meant by ‘custodian of securities’ ? Explain the capital adequacy norms laid down by SEBI for registration as a custodian. | (0) | ||||||||
| (4 marks) | ||||||||||
| 4. | (a) | Highlight the anti–money laundering measures taken under the SEBI guidelines. | (0) | |||||||
| (4 marks) | ||||||||||
| (b) | “Investment in mutual funds is risky.” Comment ? | (0) | ||||||||
| (4 marks) | ||||||||||
| (c) | Venture Cap (India) Ltd., a company listed at NSE and BSE, intends to de–list its securities. As a Company Secretary of the company, prepare a brief note on the SEBI guidelines for voluntary de-listing of securities of the company from all stock exchanges. | (0) | ||||||||
| (8 marks) | ||||||||||
| 5. | (a) | From the following data, determine the ‘net asset value’ (NAV) of a regular income scheme :
Number of units (face value of Rs.10 each) is 2,40,000. All the listed shares were purchased at a time when index was 1,200. On NAV date, the index is ruling at 2,120. Listed bonds and debentures carry a market value of Rs.5 lakh on NAV date. | (0) | |||||||
| (8 marks) | ||||||||||
| (b) | Explain briefly any two of the following investment instruments : | |||||||||
| (i) | Shares with differential voting rights. | (0) | ||||||||
| (ii) | Carrot and stick bond. | (0) | ||||||||
| (iii) | Capital indexed bonds. | (0) | ||||||||
| (2 marks each) | ||||||||||
| (c) | Comment on the role of stock–brokers and sub–brokers in Indian stock market. | (0) | ||||||||
| (4 marks) | ||||||||||
| 6. | (a) | What do you understand by ‘non–banking finance companies’ (NBFCs) ? State their investment norms as laid down under the Reserve Bank of India Act, 1934. | (0) | |||||||
| (4 marks) | ||||||||||
| (b) | Highlight the provisions relating to issuance of equity shares in respect of the following : | |||||||||
| (i) | Par value of shares. | (0) | ||||||||
| (ii) | Denomination of shares. | (0) | ||||||||
| (2 marks each) | ||||||||||
| (c) | As a Company Secretary in practice, how would you conduct securities audit in a listed company ? | (0) | ||||||||
| (4 marks) | ||||||||||
| (d) | Describe in brief the important measures for investors’ protection in Indian capital market. | (0) | ||||||||
| (4 marks) | ||||||||||
| 7. | (a) | “Every credit rating agency is required to abide by the code of conduct as per the SEBI Regulations.” Comment and discuss briefly the code of conduct for credit rating agencies. | (0) | |||||||
| (4 marks) | ||||||||||
| (b) | Explain briefly the following concepts under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 : | |||||||||
| (i) | Acquirer. | (0) | ||||||||
| (ii) | Control. | (0) | ||||||||
| (2 marks each) | ||||||||||
| (c) | Explain briefly the following terms of primary capital market : | |||||||||
| (i) | Qualified institutional buyers | (0) | ||||||||
| (ii) | Shelf prospectus | (0) | ||||||||
| (iii) | Green shoe option | (0) | ||||||||
| (iv) | Unique client code. | (0) | ||||||||
| (2 marks each) | ||||||||||
| 8. | (a) | Comment briefly on the following statements : | ||||||||
| (i) | Put not your trust in money, put your money in trust. | (0) | ||||||||
| (ii) | The process of financial reforms is still in progress and are likely to bring in even more drastic changes to make the markets healthier and stronger. | (0) | ||||||||
| (3 marks each) | ||||||||||
| (b) | Explain briefly the provisions related to ‘escrow account’ in order to make offer for buy–back of shares by an Indian company. | (0) | ||||||||
| (5 marks) | ||||||||||
| (c) | “Listing of securities with stock exchanges is a matter of great importance for companies and investors.” Comment on this statement and list out the benefits of listing for the companies and investors. | (0) | ||||||||
| (5 marks) | ||||||||||
