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RollNo..........................

Timeallowed:3hours Maximummarks:100

Totalnumberofquestions:8 Totalnumberofprintedpages:4

NOTE: AnswerSIXquestionsincludingQuestionNo.1whichiscompulsory.

1. Writenotesonanyfourofthefollowing:
(i) Centrallistingauthority
(ii) Electronicdatainformationfilingandretrievalsystem
(iii) Qualifiedinstitutionalbuyers
(iv) Moneyatcallandshortnotice
(v) Commoditybonds.
(5markseach)

2. (a) Distinguishbetweenanythreeofthefollowing:
(i) Bullandbear.
(ii) Reductionofcapitalandbuybackofcapital.
(iii) Putoptionsandcalloptions.
(iv) Dematerialisationandimmobilisation.
(2markseach)
(b) Openspottradescanbeexecutedoutsidethestockexchanges.Comment.
(5marks)
(c) Defineanyfiveofthefollowing:
(i) CDSL
(ii) FCCB
(iii) ICRA
(iv) GDR
(v) BOLT
(vi) SPN.
(1markeach)

3. Giveyourbriefadvice/commentsonanyeightofthefollowing:
(i) ABCLtd.wishestoissuedisasterbonds.
(ii) NSEhasrefusedlistingofsharesofPQRLtd.
(iii) KLMLtd.wantstobuybackitsownshares.
(iv) MNGLtd.wantstoappointamarketmaker.
 (v) XYZLtd.wantstotakeoverABCLtd.,whichisalistedcompany.
(vi) GDRLtd.wantstoappointmarketintermediariesformakingEuroissue.
(vii) SEBIhascancelledregistrationofScripsLtd.,aRegistrarandShareTransferAgent.
(viii) ThepromotersofCBALtd.wanttomakeapreferentialissueofsharestothemselves.
(ix) SQLLtd.wishestoundertakebusinessasNBFC.
(2markseach)

4. (a) Explainthefollowingcreditratingsymbolsandnametheagenciesconcerned:
(i) PL5
(ii) CS4
(iii) A2
(iv) BBB(TripleB).
(4marks)
(b) SEBI expects the investors to make investments with their eyes and ears open.
Comment.
(4marks)
(c) Whataretheprerequisitesforoptiontrading?
(4marks)
(d) ListatleastsixnewfinancialinstrumentsintroducedintheIndiancapitalmarketinthe
recentpastandexplaintheessentialfeaturesofanytwoofthem.
(4marks)

5. (a) What are the consequences of noncompliance with the requirements of listing
agreements?

(b) Clause49ofthelistingagreementhasassumedgreatsignificanceinthecorporate
governanceoflistedcompanies.Discuss.

(8markseach)

6. FineWorldLtd.,alistedcompany,withanauthorised,issuedandsubscribedcapitalof
Rs.25crorecomprisedof2.5croreequitysharesofRs.10eachandapaidupcapitalof
Rs.24crore,wantstoissuebonussharesintheratioof2:5.Discusstherelevantguidelines
andexplaintheprocedureinvolved.
(16marks)

7. (a) GrowWealthLtd.(GWL)isaregisteredstockbrokeroftheBombayStockExchange.
SEBIhasleviedonGWLapenaltyofRs.2croreforviolationoftheprovisionsofthe
SEBI(ProhibitionofFraudulentandUnfairTradePracticesrelatingtoSecurities
Markets)Regulations,2003. GWLiscontemplatingtochallengetheSEBIsorder
beforetheSecuritiesAppellateTribunalinanappeal. Discussbrieflytheprocedure
forappealbeforetheSecuritiesAppellateTribunal.
 (8marks)

(b) What is meant by due diligence ? How does a merchant banker perform due
diligenceofaprospectiveIPOclient?

(4marks)

(c) Explain insider trading. Explain the inspection and investigation mechanism for
preventinginsidertrading.

(4marks)

8. (a) WelcomeShareRegistryLtd.isappointedastheRegistrarforthepublicissueofyour
company.Youarerequiredtoprepareanotedetailingthescopeoftheirfunctions.
(6marks)
(b) Whatisnetassetvalue(NAV)?HowisNAVofafundcalculated?
(5marks)
(c) WhatisanNBFC?Discussbrieflythesalientfeaturesofregulatoryframeworkfor
NBFCsinIndia.
(5marks)
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