CS Inter - Group II : Securities Laws and Regulation of Financial Markets - December 2009

CS Inter - Group II • Securities Laws and Regulation of Financial Markets • December 2009

This Paper has 53 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.

NOTE : Answer SIX questions including Question No.1 which is compulsory.

(a)

State, with reasons in brief, whether the following statements are correct or incorrect :

(i)

Stock exchanges in India can be set–up in the form of a company only.

(0)

(ii)

Futures are the primary securities.

(0)

(iii)

SEBI can restrain any person from accessing the securities market.

(0)

(iv)

Capital market includes money market and securities market.

(0)

(v)

Venture capital fund may invite offers from the public for subscription or purchase of its units.

(0)

(2 marks each)

(b)

Re–write the following sentences after filling–in the blank spaces with appropriate words(s)/figure(s):

(i)

Protection of investors’ interest is the duty of ___________.

(0)

(ii)

An appeal against the orders of the SEBI lies with ___________.

(0)

(iii)

An instrument issued in the form of promissory note in the money market is called___________.

(0)

(iv)

Lead manager is an important player of the ___________market.

(0)

(v)

Debentures which are transferable by mere delivery are known as___________.

(0)

(1 mark each)

(c)

Choose the most appropriate answer from the given options in respect of the following:

(i)

Accounting Standards are framed in India by the –

(a)	ICSI
(b)	M C A
(c)	ICAI
(d)	SEBI.

(0)

(ii)

Out of the following, which is not a credit rating agency in India –

(a)	ICRA
(b)	CARE
(c)	CRISIL
(d)	CRA.

(0)

(iii)

The maximum amount that can be raised by an eligible borrower through external commercial borrowings (ECBs) under automatic route is –

(a)	US$ 20 million
(b)	US$ 200 million
(c)	US$ 500 million
(d)	US$ 1,000 million.

(0)

(iv)

Out of the following, which legislation does not relate to securities market –

(a)	The Securities Contracts (Regulation) Act, 1956
(b)	The Companies Act, 1956
(c)	The Securities and Exchange Board of India Act, 1992
(d)	The Forward Contracts (Regulation) Act, 1952.

(0)

(v)

The book containing bids in a book–building process is maintained by –

(a)	Merchant banker
(b)	Book runner lead manager
(c)	SEBI
(d)	Stock exchange.

(0)

(1 mark each)

(a)

Write short notes on any four of the following:

(i)

SMILE Task Force

(0)

(ii)

Tracking stocks

(0)

(iii)

Employee stock options

(0)

(iv)

External commercial borrowings

(0)

(v)

Mortgage backed securities.

(0)

(2 marks each)

(b)

Expand the following abbreviations :

(i)

T W S

(0)

(ii)

GETF

(0)

(iii)

O M O

(0)

(iv)

SEFT.

(0)

(1 mark each)

(c)

Briefly list eight major compliances under the listing agreement with regard to investor protection.

(0)

(4 marks)

(a)

Explain the role of securities market in the economic growth of a country.

(0)

(4 marks)

(b)

Discuss the main guidelines on anti–money laundering measures.

(0)

(4 marks)

(c)

What is ‘bidding’ in a book–building process? Explain.

(0)

(4 marks)

(d)

Explain briefly any two of the following :

(i)

Credit rating of securities

(0)

(ii)

Venture capital

(0)

(iii)

IPO grading.

(0)

(2 marks each)

(a)

Enumerate the various powers of the Central Government under the Securities and Exchange Board of India Act, 1992.

(0)

(4 marks)

(b)

Write a note on internal audit of ‘depository participants’.

(0)

(4 marks)

(c)

Prepare a check–list for takeover of an existing listed company in India.

(0)

(8 marks)

(a)

Explain the main features of the following :

(i)

Fully convertible debentures

(0)

(ii)

Capital indexed bonds

(0)

(iii)

Commodity bonds

(0)

(iv)

Sweat equity shares.

(0)

(2 marks each)

(b)

What is ‘non&ndah;banking finance company’ (NBFC)? State the guidelines relating to investment norms for such companies.

(0)

(4 marks)

(c)

Explain the role of self-regulatory organisations in decentralised regulation of securities market.

(0)

(4 marks)

(a)

Distinguish between the following:

(i)

‘Book closure’ and ‘record date’.

(0)

(ii)

‘Declaration of solvency’ and ‘submission of tender offer’.

(0)

(iii)

‘Immobilisation’ and ‘dematerialisation’.

(0)

(iv)

‘Public issue’ and ‘rights issue’.

(0)

(2 marks each)

(b)

"Compulsory delisting affects the rights of securities–holders." Comment.

(0)

(4 marks)

(c)

Explain the functions of custodian of securities.

(0)

(4 marks)

(a)

Describe the role of ‘stabilising agent’ in a green shoe option.

(0)

(4 marks)

(b)

Discuss the merits of ‘basket trading system’.

(0)

(4 marks)

(c)

"Straight through processing (STP) brings efficiency, non–duplication and automation in securities market." Comment.

(0)

(4 marks)

(d)

Write a note on ‘money market in India’.

(0)

(4 marks)

(a)

Explain briefly the procedure for making an appeal before Securities Appellete Tribunal (SAT).

(0)

(8 marks)

(b)

Distinguish between the ‘global depository receipts’ (GDRs) and ‘Indian depository receipts’ (IDRs).

(0)

(4 marks)

(c)

What are the advantages and disadvantages of ‘exchange traded funds’ (ETFs)?

(0)

(4 marks)

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