This Paper has 53 answerable questions with 2 answered.
| Roll No……… | |
| Time allowed : 3 hours | Maximum marks : 100 |
| Total number of questions : 8 | Total number of printed pages : 4 |
| 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) | The securities market works in a vacuum. | (1) | ||||
| (ii) | Venture capital pools are similar to hedge funds. | (0) | ||||
| (iii) | Demutualisation aims to convert a stock exchange from ‘not for profit’ to ‘for profit’ company. | (0) | ||||
| (iv) | Credit rating establishes a link between risk and return. | (0) | ||||
| (v) | A director nominated by an institution as its representative on the Board of directors is eligible to participate in ESOS. | (0) | ||||
(2 marks each) | ||||||
| (b) | Re–write the following sentences after filling–in the blank spaces with appropriate words(s)!figure(s) : | |||||
| (i) | The market wherein companies mobilise resources through issue of securities is called ___________. | (0) | ||||
| (ii) | Commercial bills are___________ accepted by buyers for goods or services obtained by them on credit. | (0) | ||||
| (iii) | A listed company is required to appoint a___________ to liaise with SEBI and stock exchanges. | (0) | ||||
| (iv) | In order to strengthen know your client (KYC) norms in the cash market and to generate a reliable audit trail, ___________ was made mandatory for all transactions in cash market. | (0) | ||||
| (v) | Revised carry forward system is introduced in place of ___________. | (0) | ||||
(1 mark each) | ||||||
| 2. | (a) | Write short notes on any two of the following : | ||||
| (i) | Spot delivery contract | (0) | ||||
| (ii) | ‘Futures’ and ‘options’ | (0) | ||||
| (iii) | Depository participants | (0) | ||||
(3 marks each) | ||||||
| (b) | Expand the following abbreviations : | |||||
| (i) | STP | (0) | ||||
| (ii) | QIBs | (0) | ||||
| (iii) | UIN | (0) | ||||
| (iv) | IPA | (0) | ||||
| (v) | TFTS | (0) | ||||
| (vi) | NSDL. | (1) | ||||
(3 marks) | ||||||
| (c) | Explain any three of the following financial instruments : | |||||
| (i) | Commercial paper | (0) | ||||
| (ii) | Secured premium notes | (0) | ||||
| (iii) | Naked debentures | (0) | ||||
| (iv) | Dual convertible bonds. | (0) | ||||
(2 marks each) | ||||||
| 3. | (a) | Explain the implications of stamp duty on buy-back of shares by a company from shareholders. | (0) | |||
(4 marks) | ||||||
| (b) | "Securities market enhances the pace of economic growth." Discuss. | (0) | ||||
(5 marks) | ||||||
| (c) | Explain any three of the following terms associated with the capital market : | |||||
| (i) | Incubators | (0) | ||||
| (ii) | Private equity players | (0) | ||||
| (iii) | Trade to trade | (0) | ||||
| (iv) | Dematerialisation. | (0) | ||||
(2 marks each) | ||||||
| 4. | (a) | Explain briefly the code of conduct for merchant bankers prescribed under SEBI Regulations. | (0) | |||
(5 marks) | ||||||
| (b) | "Reserve Bank of India is the main regulator of money market in India." Comment. | (0) | ||||
(5 marks) | ||||||
| (c) | Discuss the accounting policies and standards which are to be mandatorily followed by the asset management companies. | (0) | ||||
(5 marks) | ||||||
| 5. | (a) | Distinguish between any three of the following : | ||||
| (i) | ‘Capital market’ and ‘money market’. | (0) | ||||
| (ii) | ‘Pass through certificates’ and ‘participation certificates’. | (0) | ||||
| (iii) | ‘Fixed coupon rate’ and ‘floating coupon rate’. | (0) | ||||
| (iv) | ‘Open ended schemes’ and ‘close ended schemes’. | (0) | ||||
(3 marks each) | ||||||
| (b) | State any six important clauses of listing agreement. | (0) | ||||
(6 marks) | ||||||
| PART — B |
| (Answer ANY TWO questions from this part.) |
| 6. | (a) | Discuss briefly the following methods of raising funds from the primary capital market : | ||||
| (i) | Public issue | (0) | ||||
| (ii) | Rights issue | (0) | ||||
| (iii) | Preferential issue | (0) | ||||
| (iv) | Private placement | (0) | ||||
| (v) | Qualified institutional placement (QIP). | (0) | ||||
(3 marks each) | ||||||
| (b) | Discuss how the debt market and its instruments help the companies in raising funds. | (0) | ||||
(5 marks) | ||||||
| 7. | (a) | Explain the concept of ASBA in an IPO. | (0) | |||
(5 marks) | ||||||
| (b) | What do you understand by external commercial borrowings (ECBs) ? Discuss the types of ECBs under the automatic route. | (0) | ||||
(5 marks) | ||||||
| (c) | List out some common grievances of investors. | (0) | ||||
(5 marks) | ||||||
| (d) | What are the criteria for compulsory delisting by stock exchanges ? | (0) | ||||
(5 marks) | ||||||
| 8. | Write notes on any five of the following : | |||||
| (i) | Promoters’ contribution | (0) | ||||
| (ii) | Ombudsman | (0) | ||||
| (iii) | Investor Education and Protection Fund (IEPF) | (0) | ||||
| (iv) | Basis of allotment | (0) | ||||
| (v) | Overseas custodian bank | (0) | ||||
| (vi) | Indian depository receipts (IDRs). | (0) | ||||
(4 marks each) | ||||||
