266€¦ · state the benefits of demat securities. (3 marks) 1/2009/slc (ns) p. t. o.:3: 266 4.(a)...
TRANSCRIPT
1/2009/SLC (NS) P. T. O.
: 1 :266
Roll No..........................
Time allowed : 3 hours Maximum marks : 100
Total number of questions : 8 Total number of printed pages : 4
P A R T — A
(Answer Question No.1 which is compulsoryand any three of the rest from this part.)
1. (a) State, with reasons in brief, whether the following statements are true or false :
(i) ‘Derivatives’ are contracts which do not derive their value from any assets.
(ii) Trustees are required to disclose the basis of calculation of repurchase priceand NAV of various schemes of mutual fund.
(iii) Participatory notes are derivative instruments.
(iv) ‘Underwriter’ means a person who engages in the business of selling of anissue of securities of a body corporate.
(v) The collective investment management company is not permitted to launchany scheme for the purpose of investing in securities.
(2 marks each)
(b) Choose the most appropriate answer from the given options in respect of thefollowing :
(i) A company cannot buy-back the securities from —
(a) Free reserves
(b) Securities premium account
(c) Borrowed money
(d) Proceeds of fresh issue.
(ii) Duration of future contract on NSE is —
(a) One month
(b) Two months
(c) Three months
(d) Six months.
(iii) Certificate of deposits are issued in the form of —
(a) Bill of exchange
(b) Usance bill of exchange
(c) Usance promissory notes
(d) Term deposit.
: 2 :
1/2009/SLC (NS) Contd...
266
(iv) Venture capital funds are regulated by —
(a) RBI
(b) SEBI
(c) Stock exchange
(d) Ministry of Corporate Affairs.
(v) FCCBs are unsecured and carry interest at —
(a) Variable rate
(b) Fixed rate
(c) Floating rate
(d) Not determined.
(1 mark each)
2. (a) Distinguish between any two of the following :
(i) ‘French auction’ and ‘Dutch auction’.
(ii) ‘Cut off yield’ and ‘cut off price’.
(iii) ‘Initial margin’ and ‘maintenance margin’.
(4 marks each)
(b) “Certain securities are not available to a company for buy-back.” Explain.
(4 marks)
(c) Expand the following :
(i) FCCB
(ii) CIS
(iii) SPN. (1 mark each)
3. (a) Write short notes on any four of the following :
(i) Dual option warrants
(ii) Securities Appellate Tribunal
(iii) Escrow account
(iv) Hybrid instrument
(v) Exchange traded fund.(2 marks each)
(b) Explain the procedure for grant of registration certificate to venture capital fundby SEBI and effect of refusal to grant the certificate.
(4 marks)
(c) Explain the term ‘demat’. State the benefits of demat securities.(3 marks)
1/2009/SLC (NS) P. T. O.
: 3 :266
4. (a) What action lies against SEBI registered intermediariesin case of default/violationunder the SEBI Act, 1992 ?
(4 marks)
(b) Briefly discuss the guidelines for issue of commercial paper.
(4 marks)
(c) “Corporate Governance is the application of best management practices.” Comment.
(4 marks)
(d) Explain the following credit rating symbols —
(i) ER1A
(ii) ER1C
(iii) M1.
(1 mark each)
5. (a) Explain the following terms related to capital market :
(i) Incubators
(ii) Angel investors
(iii) Private equity players.
(2 marks each)
(b) Ajay purchases 8.4% Government of India Bond, 2018 of face value of Rs.20 lakh@ Rs.102.50 for every unit of security having face value of Rs.100. The settlementis due on 13th October, 2009. What is the amount to be paid by Ajay ? (Assumingthat interest is payable on 13th May and 13th November every year.)
(5 marks)
(c) Discuss the regulatory framework governing primary market intermediaries.
(4 marks)
P A R T — B
(Answer ANY TWO questions from this part.)
6. (a) What is Indian Depository Receipt (IDR) ? What are eligibility criteria for issueof IDRs ?
(5 marks)
(b) What is ‘price stabilization fund’ ?
(5 marks)
(c) Write a note on ‘due diligence’ in the process of public issue of securities.
(5 marks)
(d) State the powers and functions of the ‘Ombudsman’ under the SEBI (Ombudsman)Regulations, 2003.
(5 marks)
: 4 :
1/2009/SLC (NS) Contd...
266
7. (a) What do you understand by ‘offering circular’ for Euro-issue ? Mention any fiveaspects which should be covered in the offering circular.
(5 marks)
(b) What are the disclosures in the Directors’ Report as per the SEBI (EmployeeStock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 ?
(5 marks)
(c) Explain the procedure of bidding in book building issue.
(5 marks)
(d) Discuss the approvals required from various authorities in issuance of GDRs andFCCBs.
(5 marks)
8. (a) “SEBI expects the investors to make investments with their eyes and ears open.”Comment.
(5 marks)
(b) Discuss the end use of external commercial borrowings under approval route.
(5 marks)
(c) Discuss the various formalities to be complied with for the issue of bonus sharesunder the SEBI (Disclosure and Investor Protection) Guidelines, 2000.
(10 marks)
— — o — —
1/2010/SLC P. T. O.
: 1 :266
Roll No..........................
Time allowed : 3 hours Maximum marks : 100
Total number of questions : 8 Total number of printed pages : 4
P A R T — 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 correct or incorrect:
(i) Capital market is wider than securities market.
(ii) Mandatory client code facilitates market surveillance.
(iii) CAMEL model is used for rating of banking companies.
(iv) A foreign currency convertible bond is a quasi-debt instrument.
(v) The placement memorandum is to be issued for private circulation only after
the expiry of 21 days of its submission to SEBI.
(2 marks each)
(b) Re-write the following sentences after filling-in the blank spaces with appropriate
words(s)/figure(s) :
(i) Credit rating is considered more relevant for gradation of ___________.
(ii) Clearing corporation deals with ___________.
(iii) Securities in ___________ are not available for buy-back until the period expires.
(iv) Indian money market is getting integrated with the global market through
____________.
(v) ____________ is a stabilization tool for post-listing price of newly issued shares.
(1 mark each)
2. (a) Write short notes on the following :
(i) Mortgage backed securities
(ii) Basket trading system
(iii) Market abuse
(iv) Debt for equity swap.
(2 marks each)
Securities Laws And Compliances
: 2 :
1/2010/SLC Contd...
266
(b) Expand the following abbreviations :
(i) M C F S
(ii) SPDR
(iii) W M A .
(1 mark each)
(c) Explain the investment criteria for a foreign venture capital fund in India.
(4 marks)
3. (a) Explain the following terms related to capital market :
(i) Commodity pool
(ii) Depository participant.
(2 marks each)
(b) Explain the following terms related to money market :
(i) Auction
(ii) Primary dealer.
(2 marks each)
(c) Write a brief note on ‘market making’.
(3 marks)
(d) “Primary market is of great significance to the economy.” Comment.
(4 marks)
4. (a) Distinguish between any two of the following :
(i) ‘Funds pay-in’ and ‘funds pay-out’.
(ii) ‘Merchant banker’ and ‘portfolio manager’.
(iii) ‘Commercial bills’ and ‘commercial papers’.
(3 marks each)
(b) What is a ‘self-regulatory organisation’ ? What are its functions and obligations?
(5 marks)
(c) Discuss the factors generally considered by credit rating agencies for the rating ofmanufacturing companies.
(4 marks)
5. (a) Explain briefly the responsibilities and obligations of a debenture trustee.
(4 marks)
(b) Explain briefly the broad framework for short selling.
(4 marks)
1/2010/SLC P. T. O.
: 3 :266
(c) The redemption price of a mutual fund unit is Rs.48 while the front-end load andback-end load charges are 2% and 3% respectively. You are required to calculate—
(i) Net asset value per unit; and
(ii) Public offer price of the unit.(7 marks)
P A R T — B
(Answer ANY TWO questions from this part.)
6. (a) “IPO grading is a service aimed at facilitating the assessment of the equity issueoffered to the public.” Discuss.
(4 marks)
(b) Define ‘fast track issue’. List out the conditions to make a fast track issue.
(4 marks)
(c) What are the eligibility norms for public issue by an unlisted company ?
(4 marks)
(d) Briefly explain the following terms related to debt market :
(i) Pass through certificates
(ii) Benchmarked instruments
(iii) Inflation linked bonds
(iv) Floating interest rate.
(2 marks each)
7. (a) What is due diligence in the process of public issue of securities ? Explain itsscope and significance.
(4 marks)
(b) What are the compliances under the listing agreement for Indian depository receipts(IDRs) relating to appointment of Company Secretary and undertaking of duediligence of Registrar and Transfer Agent (RTA), etc. ?
(4 marks)
(c) State the conditions required to be fulfilled for conversion of external commercialborrowings (ECBs) into equity.
(4 marks)
(d) You are the Company Secretary of Great India Ltd. Prepare a Board note outliningvarious requirements of SEBI guidelines for rights issue and list out the majorsteps involved in rights issue.
(8 marks)
: 4 :
1/2010/SLC Contd...
266
8. (a) What are the legal provisions for investor protection with regard to ––
(i) misstatements in a prospectus; and
(ii) failure to send financial statements ?
(5 marks)
(b) Briefly explain the principal documents involved in issuance of global depositoryreceipts (GDRs) and foreign currency convertible bonds (FCCBs).
(5 marks)
(c) Can an issuer company offer specified securities at different prices ? What are theconditions laid down under the SEBI investor protection guidelines with regard todifferential pricing of securities ?
(5 marks)
(d) What is ‘book building’ ? What is the difference between ‘fixed price process’ and‘book building process’ ?
(5 marks)
— — o — —
1/2012/SLC P.T.O.
266: 1 :
266/1
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 compulsoryand 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.
(ii) Venture capital pools are similar to hedge funds.
(iii) Demutualisation aims to convert a stock exchange from ‘not for profit’ to ‘forprofit’ company.
(iv) Credit rating establishes a link between risk and return.
(v) A director nominated by an institution as its representative on the Board ofdirectors is eligible to participate in ESOS.
(2 marks each)
(b) Re-write the following sentences after filling-in the blank spaces with appropriateword(s)/figure(s) :
(i) The market wherein companies mobilise resources through issue of securities iscalled ___________.
(ii) Commercial bills are___________ accepted by buyers for goods or servicesobtained by them on credit.
(iii) A listed company is required to appoint a___________ to liaise with SEBI andstock exchanges.
(iv) In order to strengthen know your client (KYC) norms in the cash market andto generate a reliable audit trail, ___________ was made mandatory for alltransactions in cash market.
(v) Revised carry forward system is introduced in place of ___________.
(1 mark each)
Securities Laws and Compliances
1/2012/SLC Contd ........
266: 2 :
2. (a) Write short notes on any two of the following :
(i) Spot delivery contract
(ii) ‘Futures’ and ‘options’
(iii) Depository participants.
(3 marks each)
(b) Expand the following abbreviations :
(i) STP
(ii) QIBs
(iii) UIN
(iv) IPA
(v) TFTS
(vi) NSDL.
(3 marks)
(c) Explain any three of the following financial instruments :
(i) Commercial paper
(ii) Secured premium notes
(iii) Naked debentures
(iv) Dual convertible bonds.
(2 marks each)
3. (a) Explain the implications of stamp duty on buy-back of shares by a company fromshareholders.
(4 marks)
(b) “Securities market enhances the pace of economic growth.” Discuss.
(5 marks)
(c) Explain any three of the following terms associated with the capital market :
(i) Incubators
(ii) Private equity players
(iii) Trade to trade
(iv) Dematerialisation.
(2 marks each)
ICSI Securities Laws And CompliancesQuestion Paper
Publisher : ICSI Author : ICSI
Type the URL : http://www.kopykitab.com/product/1299
Get this eBook