This Paper has 48 answerable questions with 2 answered.
| Roll No………… | |
| Time allowed : 3 hours | Maximum marks : 100 |
| Total number of questions : 8 | Total number of printed pages : 2 |
| PART — A |
| (Answer Question No.1 which is compulsory and any three of the rest from this part) |
| 1. | (a) | State, with reasons in brief, whether the following statements are true or false : | ||||
| (i) | Sweat equity shares are allotted to employees of a company as gift for their performance. | (0) | ||||
| (ii) | Continuing disclosure by listed companies under the SEBI Takeover Code affects the market price of company’s shares. | (1) | ||||
| (iii) | In case of rolling settlement, the delivery of funds and securities is settled on T+2 basis. | (0) | ||||
| (iv) | The Central Government cannot privately place the government securities with the Reserve Bank of India. | (0) | ||||
| (v) | Listing of securities with stock exchanges is a matter of great importance. | (0) | ||||
| (2 marks each) | ||||||
| (b) | Choose the most appropriate answer from the given options in respect of the following : | |||||
| (i) | The responsibility for regulating the securities market is not shared by the – (a) SEBI (b) Reserve Bank of India (c) Stock Exchanges (d) Ministry of Corporate Affairs. | (1) | ||||
| (ii) | The mechanism for employees to report to the management certain events like, unethical behaviour, suspected fraud or violation of the company’s code of conduct is known as – (a) Whistle blower policy (b) Surveillance action (c) Market abuse (d) Snap investigation. | (0) | ||||
| (iii) | 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) | ||||
| (iv) | Before 1992, the authority which used to regulate and deal with the stock market was the – (a) Reserve Bank of India (b) Controller of Capital Issues (c) Registrar of Companies (d) SEBI. | (0) | ||||
| (v) | Stock brokers and sub–brokers are required to be registered with the – (a) SEBI (b) Stock exchanges (c) Registrar of Companies (d) Both (a) and (b). | (0) | ||||
| (1 mark each) | ||||||
| 2. | (a) | Write short notes on the following : | ||||
| (i) | Securities lending | (0) | ||||
| (ii) | Fungibility | (0) | ||||
| (iii) | Custodian of securities. | (0) | ||||
| (3 marks each) | ||||||
| (b) | Expand the following abbreviations : | |||||
| (i) | OMO | (0) | ||||
| (ii) | FSO | (0) | ||||
| (iii) | STR. | (0) | ||||
| (1 mark each) | ||||||
| (c) | What are the securities which are not available for buy–back? | (0) | ||||
| (3 marks ) | ||||||
| 3. | (a) | Distinguish between any two of the following :. | ||||
| (i) | ‘Primary market’ and ‘secondary market’. | (0) | ||||
| (ii) | ‘Close ended schemes’ and ‘open ended schemes’. | (0) | ||||
| (iii) | ‘Disaster bonds’ and ‘dual convertible bonds’. | (0) | ||||
| (3 marks each) | ||||||
| (b) | "Capital market intermediaries are a vital link between the SEBI and investors in a public issue." Comment. | (0) | ||||
| (5 marks ) | ||||||
| (c) | Explain the following grading scales for healthcare institutions given by CRISIL : | |||||
| (i) | Grade A | (0) | ||||
| (ii) | Grade B | (0) | ||||
| (iii) | Grade C | (0) | ||||
| (iv) | Grade D. | (0) | ||||
| (1 mark each) | ||||||
| 4. | (a) | What are the obligations of a capital market intermediary under the Prevention of Money Laundering Act, 2002 ? | (0) | |||
| (5 marks ) | ||||||
| (b) | List out any four clauses of listing agreement. | (0) | ||||
| (5 marks ) | ||||||
| (c) | "Depository system is a boon to capital market and investors, both." Elucidate the statement and bring out the advantages of the dematerialisation of securities. | (0) | ||||
| (5 marks ) | ||||||
| 5. | (a) | Define ‘NAV’ and ‘offer price’. If Rahul invests Rs.10,000 in a scheme that charges 2% front end load at an NAV of Rs.10 per unit, what shall be the public offer price? | (0) | |||
| (5 marks ) | ||||||
| (b) | What are the pre–requisites for ‘option trading’? Explain the issues connected with option trading. | (0) | ||||
| (5 marks ) | ||||||
| (c) | Explain the concept of ‘collective investment scheme’. State briefly the obligations of trustees. | (0) | ||||
| (5 marks ) | ||||||
| PART — B |
| (Answer ANY TWO questions from this part.) |
| 6. | (a) | What is ‘initial public offering’ (IPO) grading ? Explain the procedure for IPO grading. | (0) | |||
| (5 marks ) | ||||||
| (b) | What is ‘green shoe option’? Explain its significance. | (0) | ||||
| (5 marks ) | ||||||
| (c) | List out the various approvals required for issuance of ‘Global Depository Receipts’ (GDRs) and the documentation required therefor. | (0) | ||||
| (5 marks ) | ||||||
| (d) | Explain the procedure adopted for approval of ‘basis of allotment’ by the stock exchanges. | (0) | ||||
| (5 marks ) | ||||||
| 7. | (a) | Explain any three of the following terms relating to debt market in India : | ||||
| (i) | Benchmarked instruments. | (0) | ||||
| (ii) | Inflation linked bonds | (0) | ||||
| (iii) | Pass through certificates | (0) | ||||
| (iv) | Floating interest rate. | (0) | ||||
| (2 marks each) | ||||||
| (b) | What is meant by the following in a public issue : | |||||
| (i) | Subscription list | (0) | ||||
| (ii) | Issue opening date. | (0) | ||||
| (iii) | Mandatory collection centre? | (0) | ||||
| (3 marks each) | ||||||
| (c) | What is the ‘investor education and protection fund’ (IEPF) ? Briefly explain its activities as stipulated under the IEPF Rules. | (0) | ||||
| (5 marks ) | ||||||
| 8. | (a) | What do you understand by ‘fast track issues’? Explain in brief the provisions related to fast track issues. | (0) | |||
| (6 marks ) | ||||||
| (b) | Write short notes on the following: | |||||
| (i) | Foreign currency convertible bonds (FCCBs) | (0) | ||||
| (ii) | Overseas depository bank. | (0) | ||||
| (iii) | Prohibition of certain dealings in securities under the SEBI Regulations. | (0) | ||||
| (3 marks each) | ||||||
| (c) | What are the requirements for making investment in Indian Depository Receipts (IDRs)? | (0) | ||||
| (5 marks ) | ||||||
