This Paper has 61 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) | A merchant banker can advise investment in the shares of a particular company on a TV Channel. | (0) | |||||
| (ii) | The securities market facilitates the internationalisation of an economy by linking it with the rest of the world. | (0) | |||||
| (iii) | A company can issue sweat equity shares within 6 months of commencement of business. | (0) | |||||
| (iv) | An appeal can be made to the Supreme Court if a person is aggrieved by an order of the Securities Appellate Tribunal. | (0) | |||||
| (v) | A company may change the denomination (face value) of its already issued shares by splitting or consolidation. | (0) | |||||
| (2 marks each) | |||||||
| (b) | Re–write the following sentences after filling–up the blank spaces with appropriate word(s)/figure(s): | ||||||
| (i) | ___________ is an unsecured money market instrument issued in the form of promissory note. | (0) | |||||
| (ii) | ___________means an institution incorporated or established outside India which proposes to make investment in India in securities. | (0) | |||||
| (iii) | Equity linked saving schemes offering tax rebate to the investors under tax laws have a lock–in–period of ___________ years. | (0) | |||||
| (iv) | The total underwriting obligations of an underwriter under all agreements should not exceed 20 times of his __________. | (0) | |||||
| (v) | The primary responsibility of building the book in an issue is of the ___________ . | (0) | |||||
| (1 mark each) | |||||||
| (c) | Choose the most appropriate answer from the given options in respect of the following : | ||||||
| (i) | Securities audit can be conducted by the – (a) Chartered Accountant in Practice (b) Cost & Works Accountant in Practice (c) Company Secretary in Whole-time Practice (d) Certified Financial Analyst. | (0) | |||||
| (ii) | Which of the following is not an investment strategy in derivatives trading – (a) Strap (b) Straddle (c) Swap (d) Strip. | (0) | |||||
| (iii) | Provisions of the Securities Contract (Regulation) Act, 1956 do not apply to – (a) Government companies (b) Banking companies (c) Financial institutions (d) Corporations set up by an Act of Parliament. | (0) | |||||
| (iv) | The credit rating methodology for non-banking financial companies is based on – (a) Capital adequacy (b) Asset quality (c) Earning and liquidity (d) All the above. | (0) | |||||
| (v) | Zero coupon bonds are issued – (a) At par (b) At premium (c) At discount (d) Any of the above. | (0) | |||||
| (1 mark each) | |||||||
| 2. | (a) | Write short notes on any four of the following : | |||||
| (i) | Reserve fund. | (0) | |||||
| (ii) | Clearing corporation. | (0) | |||||
| (iii) | Micro finance companies. | (0) | |||||
| (iv) | Internet trading. | (0) | |||||
| (v) | Placement memorandum. | (0) | |||||
| (3 marks each) | |||||||
| (b) | Expand the following : | ||||||
| (i) | DAC | (0) | |||||
| (ii) | DFHI | (0) | |||||
| (iii) | CDSL | (0) | |||||
| (iv) | EDIFAR. | (0) | |||||
| (1 mark each) | |||||||
| 3. | (a) | What is ‘margin trading facility’? Discuss briefly the essential requirements in respect of providing margin trading facility. | (0) | ||||
| (6 marks ) | |||||||
| (b) | "Treasury bills are an effective cash management product." Elucidate. | (0) | |||||
| (5 marks ) | |||||||
| (c) | Explain the following credit rating symbols: | ||||||
| (i) | PL3 | (0) | |||||
| (ii) | FAAA | (0) | |||||
| (iii) | CRI | (0) | |||||
| (iv) | FD | (0) | |||||
| (v) | PA–1. | (0) | |||||
| (1 mark each) | |||||||
| 4. | (a) | Distinguish between any two of the following : | |||||
| (i) | ‘Employee stock option scheme’ and ‘employee stock purchase scheme’. | (0) | |||||
| (ii) | ‘Organised money market’ and ‘unorganised money market’. | (0) | |||||
| (iii) | ‘Voluntary delisting’ and ‘compulsory delisting’. | (0) | |||||
| (3 marks each) | |||||||
| (b) | Elaborate the following expressions/terms as defined under the SEBI (Prohibition of Insider Trading) Regulations, 1992: | ||||||
| (i) | Price sensitive information | (0) | |||||
| (ii) | Close period. | (0) | |||||
| (iii) | Insider. | (0) | |||||
| (2 marks each) | |||||||
| (c) | "Permanent Account Number (PAN) is the sole identification number for all transactions in the securities market." Elucidate. | (0) | |||||
| (4 marks ) | |||||||
| 5. | (a) | INQ Ltd. is listed with the National Stock Exchange of India Ltd. with capital of Rs.125 crore. The company desires to make a GDR issue of Rs.500 crore to augment its capital for a new titanium dioxide project being set-up in Tamil Nadu. As the Company Secretary of INQ Ltd., prepare a note informing the Board of directors about various approvals required to make such an issue. | (0) | ||||
| (6 marks ) | |||||||
| (b) | Highlight the provisions of clause 40A and 40B of the listing agreement pertaining to continued listing of shares and takeover offers. | (0) | |||||
| (6 marks ) | |||||||
| (c) | Explain briefly any one of the following terms withreference to the SEBI (Substantial Acquisition of Shares and Takeovers) Regulation, 1997 : | ||||||
| (i) | Person acting in concert. | (0) | |||||
| (ii) | Public announcement. | (0) | |||||
| (4 marks ) | |||||||
| 6. | (a) | Briefly describe the provisions relating to anti–money laundering. | (0) | ||||
| (4 marks ) | |||||||
| (b) | "Best protection is the self–protection." Elucidate this statement with emphasis on the checks that an investor should exercise before deciding to invest in securities. | (0) | |||||
| (4 marks ) | |||||||
| (c) | State briefly the special features of any two of the following : | ||||||
| (i) | Deep discount bonds. | (0) | |||||
| (ii) | Floating rate notes. | (0) | |||||
| (iii) | Sweat equity shares. | (0) | |||||
| (2 marks each) | |||||||
| (d) | Describe briefly the code of conduct for a portfolio manager as laid down by the SEBI. | (0) | |||||
| (4 marks ) | |||||||
| 7. | (a) | Give your considered advice on the following proposals : | |||||
| (i) | A company proposes to issue irredeemable preference shares. | (0) | |||||
| (ii) | A portfolio manager wants to file a defamation suit against the Chairman, SEBI for imposing penalty on him. | (0) | |||||
| (iii) | A mutual fund manager wants to park funds of a scheme in the fixed deposit of a bank. | (0) | |||||
| (iv) | A listed company wants to issue fully convertible debentures with conversion period of 36 months. | (0) | |||||
| (2 marks each) | |||||||
| (b) | What do you mean by ‘exchange traded funds’? Explain their advantages and disadvantages. | (0) | |||||
| (4 marks ) | |||||||
| (c) | Define ‘registered transfer agent’ (RTA). Describe the role played by RTA both in the primary and secondary market. | (0) | |||||
| (4 marks ) | |||||||
| 8. | (a) | Explain any two of the following terms related to capital market : | |||||
| (i) | Hybrid scheme | (0) | |||||
| (ii) | Top down investing | (0) | |||||
| (iii) | Inter–corporate deposit | (0) | |||||
| (iv) | Gilt–edged securities. | (0) | |||||
| (2 marks each) | |||||||
| (b) | Explain briefly the SEBI guidelines on pricing of equity shares by an issuer company. | (0) | |||||
| (4 marks ) | |||||||
| (c) | Critically examine the role of SEBI in the regulation of capital market in India. | (0) | |||||
| (4 marks ) | |||||||
| (d) | Define ‘listed securities’ and ‘permitted securities’ and distinguish between them. | (0) | |||||
| (4 marks ) | |||||||
