IGP-PATEL NAGAR
CMSL
CS SANJEEV SAPRA
CAPITAL MARKET & SECURITIES LAWS
Important topics & practice paper for
IGP students appearing in CS-EXE JUNE-2016 exams
OVER VIEW OF CAPITAL MARKET
1. What do you mean by financial system and its functions? How the long term growth of financial
system is ensured through?
2. Explain the role of capital market in economic growth, which are the various legislations to govern it.
3. IOSCO and its membership.
CAPITAL MARKET INSTRUMENTS
1. What do you mean by financial instruments and explain the Factors affecting the preferences for
choosing any instruments by issuer and investors.
2. Explain:
(a) Sweat equity shares
(b) Index rate notes
(c) Extendable notes
(d) Level pay floating rate notes
(e) Tracking Stock and its advantages
(f) Mortgage backed securities
(g) Secured Premium Notes
(h) Carrot & Stick bonds
CREDIT RATING
1. Explain Rating methodologies/process of manufacturing companies and financial companies.
2. What do you mean by asset securitization/structured obligation?
3. Explain the eligibility conditions and procedure registration for Credit Rating Agency.
4. Explain the rating symbols for long term debt instruments and their meaning.
STOCK EXCHANGE TRADING MECHANISM
1. Which types of margins are levied by Stock Exchanges?
2. Write note on:
(a) Market Making
(b) Rolling settlement
(c) Auction by stock Exchange
(d) Pay in Pay out
(e) Direct market access
(f) Algorithmic trading
3. What is straight through processing? What are its advantages?
4. What is no-delivery period at stock exchange?
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IGP-PATEL NAGAR
CMSL
CS SANJEEV SAPRA
5. What do you mean by Surveillance Action at stock exchange?
6. Explain the following terms.
(a) Circuit Filters
(b) Circuit Breaker and Circuit Filter
(c) Trade to Trade
(d) Market Abuse
(e) Institutional Trading Platform (ITP)
7. What is ‘demutualization’? Briefly discuss the important features of demutualization.
8. Explain following terms in short;
(a) Bull market and Bear Market
(b) Jobber and Arbitrager
(c) Long position and short position
DEBT MARKET
1. What is derived instrument? Explain the following derived instruments:
(a) Negotiated Dealing System (NDS)
(b) Mortgage Bonds
(c) Pass through Certificates
(d) Participation Certificate
2. Explain the following:
(a) Floating Rate Bonds
(b) Inflation Linked Bonds
(c) Call and Notice money
(d) Special Purpose Distinct Entity (SPDEs)
3. Which company can issue Shelf Prospectus and What are the eligibility conditions for issuing
companies.
4. Briefly discuss the role of Company Secretary as Compliance Officer in Listing of Debt Securities.
MONEY MARKET
1. What is the difference between Money market & Capital market?
2. Explain Treasury bills, its types and benefits.
3. Mr. Investor wishes to buy 91 days Treasury Bill on May 12, 2016 which is maturing on July 6, 2016.
The rate quoted by seller is 99.1489 per 100 face values. Calculate the annual yield.
4. Explain Dutch auction and French auction of T-Bills.
5. Write note on:
(a) Certificate of Deposits (CDs)
(b) Commercial Paper (CP)
(c) Bill rediscounting
(d) Mezzanine Financing
(e) FIMMDA
6. Explain Factoring, its types and its benefits to the seller.
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IGP-PATEL NAGAR
CMSL
CS SANJEEV SAPRA
MUTUAL FUNDS
1. What are the advantages and disadvantages of investing in a mutual fund?
2. Describe the types of schemes of mutual funds according to maturity period and their differences..
3. What are the Investment Strategies adopted by Mutual Fund Managers.
4. What are the requirements for a mutual fund in relation to for issue and updation of Offer document of
the schemes?
5. What eligibility criteria to be fulfilled by an applicant to get a certificate of registration for Mutual
Fund.
6. What in Infrastructure Debt fund Scheme and role of strategic investor? Briefly explain the Eligibility
criteria to launch such scheme.
7. Enumerate the salient features of Real Estate Mutual Fund Scheme.
8. Write short notes on:
(a) Net Asset Value (NAV)
(b) Mutual Fund Cost
(c) Asset Management Company
(d) Gold Exchange Traded funds
(e) Capital Protection Oriented Scheme
(f) Sponsor
(g) Hedge funds
(h) Fund of fund
(i) Exchange traded funds
(j) Private equity funds
(k) Venture capital funds
(l) Strategic investors
9. General Due Diligence by trustee and Specific Due Diligence by trustee under mutual fund.
ALTERNATIVE INVESTMENT FUND
1. What are the key differences between 3 categories of Alternative Invesment funds?
2. What is Angel Fund and what are the investment conditions for them?
3. What do you mean by - Angel investments
- Angel Investors
4. Discuss the circumstances under which an Alternative Investment Fund could be wound up?
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IGP-PATEL NAGAR
CMSL
CS SANJEEV SAPRA
COLLECTIVE INVESTMENT SCHEME
1. What do you mean by Collective Investment Scheme and eligibility conditions for registration under
SEBI regulations?
2. Discuss the various restrictions on business activities of Collective Investment Management Company?
RESOURCE MOBILISATION IN INTERNATIONALCAPITAL MARKET
1. What do you mean by EURO ISSUE and what are the Purpose/benefits to Issuer and Investor?
2. What are the provisions of Companies Act-2013 for issue of Global Depository Receipts?
3. Explain the procedure for issuance of GDR/FCCBS
4. Write note on following:
(a) Sponsored ADR/GDR issue
(b) Parking of FCCB/ FCEB proceeds
(c) Road shows
5. Explain the various tracks and forms available under External Commercial Borrowings (ECB)?
6. Explain External Commercial Borrowings (ECB) reference to:
(a) How it can be accessed, who are eligible borrowers under different routes?
(b) End use of ECB proceeds.
(c) End use not permitted of ECB proceeds
(d) Parking of ECB proceeds
(e) Recognized Lenders and borrowers
(f) Conversion of ECB into equity
INDIAN DEPOSITORY RECEIPTSS
1. Eligibility and procedure for making an issue OF IDRs.
SCRA-1956
1. State the conditions and procedure for Recognition of Stock Exchanges and Clearing Corporations.
2. What are the guidelines for ownership of Stock Exchanges and Clearing Corporaion under SCRA
Regulations?
3. Explain the following:
(a) Corporatisation and Demutualisation of stock exchanges.
(b) Clearing Corporation
4. State the grounds on which a stock exchanges can delist the securities of a company under the SCRR,
1957.
5. What is the remedy available to accompany if a stock exchange refuse to list its securities under
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IGP-PATEL NAGAR
CMSL
CS SANJEEV SAPRA
SCRA Act, 1956
6. What are the provisions under SCRA-1956 for public issue and listing of securities.
7. What are the Qualification prescribed for Individual and Corporate Membership of a recognised Stock
Exchange?
8. Explain the provisions for Continuous Listing Requirements (Minimum public shareholding under
SCRA-1956
SEBI ACT-1992
1. Explain the objects, composition, power and functions of SEBI.
2. Explain the following with respect to SEBI (Settlement of administrative & civil proceedings)
regulations, 2014
(a) Consent Order
(b) Scope of Settlement Proceeding
(c) Settlement Terms
(d) Factors to be considered to arrive at the settlement terms
3. Briefly explain the various defaults which cannot be considered for settlement of proceedings under
the SEBI (Settlement of Administrative & Civil Proceedings) Regulations.
4. Procedure for making appeal to SAT and its powers.
DEPOSITORIES ACT-1996
1. Give an overview of the key features of Depository Systems in India.
2. What are benefits of depository system?.
3. Which are the audits are required for Depositories and Participants?
4. What are Designated Depository Participant (DDP) and Eligibility criteria for DDP?
5. Briefly explain the guidelines issued by SEBI with respect to single registration of depository
participants under the SEBI (Depositories and Participants) Regulations, 1996
6. What is "Basic Services Demat Account" (BSDA)? Who are eligible investors to open it and charges?
7. SARAL account opening for resident individuals.
LISTING AND DELISTING OF SECURITIES
1. What are the various types of listing and benefits of listing? What is difference between Listed cleared
securities and permitted securities.
2. Explain the legal provisions of listing under Co. Act-2013 and SCRA-1956
3. Explain the legal provisions under the various listing Regulations:
(a) Regulation 6
(b) Regulation 17
(c) Regulation 18
(d) Regulation 29
(e) Regulation 31
(e) Regulation 33
(f) Regulation 42
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IGP-PATEL NAGAR
CMSL
CS SANJEEV SAPRA
4. Discuss corporate governance provisions under SEBI (LODR), 2015.
5. Distinguish between voluntary delisting of securities and compulsory delisting of securities briefly
explain the procedure for voluntary delisting only from some of the stock exchange.
6. State the circumstances where delisting is not permissible.
ISSUE OF SECURITIES
1. Explain the eligibility norms for public issue under SEBI (ICDR) Regulations.
2. Explain the following with relevant provisions or conditions:
(c) Promoters’ contribution and lock in requirements
(d) Reservation on competitive basis
(e) Allocation in net offer to public
(f) Anchor investor
(g) Green Shoe Option
(h) ASBA and Self Certified Syndicate Bank.
(i) Face value of securities
(j) QIB and Anchor investors
3. Explain conditions for bonus issue of securities.
4. Explain Book building and Alternate Method of Book Building.
5. Preferential issue by existing listed companies
6. What are the conditions for making Qualified Institutions placement under SEBI ICDR Regulations?
7. What is Institutional Placement Programme (IPP)?
8. Listing on institutional trading platform.
9. What are the criteria for issue specified securities by a SME and Briefly discuss the provisions relating
to the migration of a listed company from Main Board to SME Exchange under SEBI (ICDR)
Regulations migrations?
SECURITIES MARKET INTERMEDIARIES
1. What do you mean by Merchant banker? What are eligibility conditions for registration with SEBI.
2. When a Merchant Banker deemed to be associated with an issuer.
3. Explain following:
(a)
(b)
(c)
(d)
(e)
Syndicate Member
Research analyst
KYC & KRA
FPI
DDP
4. What are the obligations of intermediaries under prevention of money laundering act, 2002
5. Explain the inspection and disciplinary proceedings which can be initiated by against SEBI registered
intermediaries.
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IGP-PATEL NAGAR
CMSL
CS SANJEEV SAPRA
INSIDER TRADING
1. Explain the following:
(a) Insider
(b) Connected Person and Person deemed to be connected person
(b) Unpublished price sensitive information,
(c) Trading plan
2. Regulation for Communication or procurement of unpublished price sensitive information.
3. What are the rules for the Disclosure of interest or holding in listed companies by certain persons?
4. What is the role of Compliance Officer in compliance requirements for Insider?
5. Penalty for insider trading under section 15G of SEBI Act
TAKEOVER CODE
1. Describe following:
(a) Takeover,
(b) Persons Acting in Concert
(c) Trigger point for making an open offer by an acquirer
(d) Creeping acquisition
(d) Public announcement
2. What are the conditions for making Mandatory and Voluntary open offer?
3. What is mode of payment under SAST Regulations?
4. Briefly explain the conditions on which SEBI can grant exemption to an acquirer.
5. What are the Escrow account obligations towards security for performance obligations under SAST
Regulations?
INVESTOR PROTECTION
1. What are the Investors’ rights and responsibilities under securities Laws?
2. Whom to approach for complaint against stock brokers/depository participants.
3. What is Legal framework for investor protection in India?
4. When can a case relating to Investor Protection be referred for arbitration?
5. Which are the matters that are not considered as complaints of Investor by SEBI?
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IGP-PATEL NAGAR
CMSL
CS SANJEEV SAPRA
NON-CONVERTIBLE REDEEMABLE PREFERENCE SHARES
1. State the various conditions to be fulfilled by a company to make a public issue of non-convertible
redeemable preference shares under SEBI (Issue and Listing of Non Convertible Redeemable
Preference Shares) Regulations, 2013.
2. Discuss the Conditions for listing of non-convertible redeemable preference shares issued on private
placement basis.
REAL ESTATE INVESTMENT TRUSTS (REITS)
1. Explain major provisions of SEBI (Real Estate Investment Trusts) Regulation, 2014 for registrations.
2. Discuss the type of securities where REITs can invest its money and restrictions imposed as per the
SEBI (Real Estate Investment Trusts) Regulation, 2014.
INFRASTRUCTURE INVESTMENT TRUSTS
1. Distinguish between PPP Project’ and ‘Pre-Cod Project.
2. What are the eligibility criteria for approval of InvITs?
3. Discuss the type of securities where InvIT can invest its money and restrictions imposed as per the
SEBI (Infrastructure Investment Trusts) Regulation, 2014.
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