This Paper has 59 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) | The proceeds of external commercial borrowings (ECB), not brought into India, can be invested abroad by a company. | (0) | ||||||||
| (ii) | Appointment of a lead merchant banker is not compulsory for the rights issue by a listed company. | (0) | ||||||||
| (iii) | A promoter can transfer his shares during lock–in period, if shares are acquired in a preferential allotment. | (0) | ||||||||
| (iv) | A beneficial owner with a depository can claim his loss to be indemnified by the depository. | (0) | ||||||||
| (v) | A venture capital fund can get its units listed at a recognised stock exchange in India. | (0) | ||||||||
| (2 marks each) | ||||||||||
| (b) | Choose the most appropriate answer from the given options in respect of the following : | |||||||||
| (i) | Underwriting is the technique used in issue of securities under : (a) Public issue (b) Rights issue (c) Bonus issue (d) All the above. | (0) | ||||||||
| (ii) | The money market instrument which is issued in the form of a promissory note is called : (a) Commercial bill (b) Commercial paper (c) Treasury bill (d) Unit issued by a ‘money market mutual fund’ (MMMF). | (0) | ||||||||
| (iii) | In case of an Euro issue, the prospective investors can access to vital information about the issuer company from : (a) Stock research report (b) Offering circular (c) Quarterly results of the issuer company (d) Investor relation programs. | (0) | ||||||||
| (iv) | Market capitalisation of a listed company is computed by multiplying number of shares available for trade with : (a) Face value of a share (b) Market price of a share (c) Issue price of a share (d) Book price of a share. | (0) | ||||||||
| (v) | In case of a public issue, the minimum application value should be in the range of : (a) Rs.3,000 – Rs.5,000 (b) Rs.5,000 – Rs.10,000 (c) Rs.7,000 – Rs.10,000 (d) Rs.5,000 – Rs.7,000. | (0) | ||||||||
| (1 mark each) | ||||||||||
| (c) | Re–write the following sentences after filling–up the blank spaces with the most appropriate word(s)/figure(s) : | |||||||||
| (i) | Money market instruments are generally financial claims that have ________ risk. | (0) | ||||||||
| (ii) | Hedge funds are also called ___________. | (0) | ||||||||
| (iii) | Dealing in securities between members outside the official hours of stock exchange is known as _____________. | (0) | ||||||||
| (iv) | Open ended schemes of mutual funds are more ______ than close ended schemes. | (0) | ||||||||
| (v) | Holders of Global Depository Receipts (GDRs) do not carry ________ rights. | (0) | ||||||||
| (1 mark each) | ||||||||||
| 2. | (a) | Write short notes on any four of the following : | ||||||||
| (i) | Concurrent audit of depository participants | (0) | ||||||||
| (ii) | Asset securitisation | (0) | ||||||||
| (iii) | Demutualisation of stock exchange | (0) | ||||||||
| (iv) | Tracking stocks | (0) | ||||||||
| (v) | Voluntary delisting of securities. | (0) | ||||||||
| (3 marks each) | ||||||||||
| (b) | Expand the following : | |||||||||
| (i) | OTCEI | (0) | ||||||||
| (ii) | AMC | (0) | ||||||||
| (iii) | FIPB | (0) | ||||||||
| (iv) | IDR. | (0) | ||||||||
| (1 mark each) | ||||||||||
| 3. | (a) | Distinguish between any two of the following : | ||||||||
| (i) | ‘European option’ and ‘American option’. | (0) | ||||||||
| (ii) | ‘Buy and hold’ and ‘buy and trade’. | (0) | ||||||||
| (iii) | ‘Commercial bills’ and ‘commercial papers’. | (0) | ||||||||
| (4 marks each) | ||||||||||
| (b) | Explain any two of the following investment strategies: | |||||||||
| (i) | Straddle | (0) | ||||||||
| (ii) | Strip | (0) | ||||||||
| (iii) | Strap. | (0) | ||||||||
| (2 marks each) | ||||||||||
| (c) | State the requirements of ‘minimum subscription’ in respect of the following: | |||||||||
| (i) | Public issue | (0) | ||||||||
| (ii) | Composite issue. | (0) | ||||||||
| (2 marks each) | ||||||||||
| 4. | (a) | Explain any two of the following terms related to securities market: | ||||||||
| (i) | Market abuse | (0) | ||||||||
| (ii) | Price monitoring | (0) | ||||||||
| (iii) | On line surveillance. | (0) | ||||||||
| (2 marks each) | ||||||||||
| (b) | “On line trading of corporate securities has originated the depository services in the capital markets.” Comment. | (0) | ||||||||
| (4 marks) | ||||||||||
| (c) | Explain the rationality of ‘fund of funds’ in the Indian financial market. | (0) | ||||||||
| (4 marks) | ||||||||||
| (d) | State the composition of ‘remuneration committee’ as provided under Clause 49 of the listing agreement. | (0) | ||||||||
| (4 marks) | ||||||||||
| 5. | (a) | As on 1st April, 2008, Cash Rich Ltd. has surplus cash for six months. It has following two options under consideration for investing the surplus cash —
Presuming that the risk involved in both the options is identical, state giving reasons which option should be selected by the company for investing its surplus funds. | (0) | |||||||
| (8 marks) | ||||||||||
| (b) | Briefly comment on any three of the following statements : | |||||||||
| (i) | Mutual fund investments in India are fraught with multiple risks. | (0) | ||||||||
| (ii) | Provision for buy–back of securities/shares has contributed to volatility of stock. | (0) | ||||||||
| (iii) | SEBI has taken a number of steps to improve the working of the stock exchanges. | (0) | ||||||||
| (iv) | Exchange Traded Funds (ETFs) are the new variety of mutual funds. | (0) | ||||||||
| (2 marks each) | ||||||||||
| (c) | Explain the accounting ratios which are required to be disclosed under the heading ‘basis for issue price’ in an offer document for an issue under book building process. | (0) | ||||||||
| (4 marks) | ||||||||||
| 6. | (a) | A unit of Evergrow Equity Fund is redeemed at Rs. 15, the exit load being 2.25%. Calculate the NAV. | (0) | |||||||
| (4 marks) | ||||||||||
| (b) | Briefly explain the developments in commodity futures market. | (0) | ||||||||
| (4 marks) | ||||||||||
| (c) | Explain ‘unique identification number’ (UIN) and criteria to determine specified intermediaries, specified listed companies and specified investors. | (0) | ||||||||
| (4 marks) | ||||||||||
| (d) | Discuss briefly the SEBI Guidelines on insider trading. | (0) | ||||||||
| (4 marks) | ||||||||||
| 7. | (a) | Explain the eligibility criteria for appointment of an ‘Ombudsman’ under the SEBI Regulations. What are the functions of an Ombudsman ? | (0) | |||||||
| (4 marks) | ||||||||||
| (b) | Mention the terms and conditions on which non–banking finance companies can accept public deposits under directions issued by the Reserve Bank of India. | (0) | ||||||||
| (4 marks) | ||||||||||
| (c) | List out briefly the general grievances of investors against the companies. | (0) | ||||||||
| (4 marks) | ||||||||||
| (d) | What are the duties of debenture trustees under the SEBI (Debenture Trustees) Regulations, 1993 ? | (0) | ||||||||
| (4 marks) | ||||||||||
| 8. | (a) | What is ‘margin trading facility’ ? State briefly the essential requirements for providing margin trading facility to the members by a stock exchange. | (0) | |||||||
| (4 marks) | ||||||||||
| (b) | State briefly whether electronic–holding of securities can be converted into physical form. Also state in brief whether instructions for delivery of securities can be given to a depository participant via internet. | (0) | ||||||||
| (4 marks) | ||||||||||
| (c) | Explain the following credit rating symbols : | |||||||||
| (i) | FA | (0) | ||||||||
| (ii) | DA1 | (0) | ||||||||
| (iii) | LAA+ | (0) | ||||||||
| (iv) | PR5 | (0) | ||||||||
| (1 mark each) | ||||||||||
| (d) | Define ‘persons acting in concert’ under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997. | (0) | ||||||||
| (4 marks) | ||||||||||
