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Roll No

Time allowed : 3 hours Maximum marks : 100

Total number of questions : 8 Total number of printed pages : 3

NOTE : Answer SIX questions including Question No.1 which is compulsory.

1. Write short notes on any four of the following :

(i) Portfolio manager
(ii) Mortgage backed securities
(iii) Rolling settlement
(iv) Global depository receipt
(v) Bankers to public issue.
(5 marks each)

2. (a) The securities lending price (SLP) of a stock is Rs.100 and the
transaction price (TP) is Rs.100.50. Calculate the annualised yield. What
will be the annualised yield, if the transaction price (TP) is Rs.99 ?
(8 marks)
(b) Calculate the value of rights if
Number of rights offered (n) = 2,000
Number of shares held (m) = 1,000
Ex-right price (Pex) = Rs.18
Rights offer price (Pof) = Rs.15
Face value of share = Rs.10.
(4 marks)
(c) Define any four of the following :
(i) SPN
(ii) NSDL
(iii) ALBM
(iv) FCCB
(v) ECB
(vi) CARE.
(4 marks)

3. (a) The Securities and Exchange Board of India (SEBI) has issued certain
guidelines to regulate the activities of merchant bankers. State the SEBI
guidelines related to role of merchant bankers vis-a-vis offer document.
(8 marks)

2/2003/SLRFM P.T.O.

(b) Helping Registry Ltd. is registered with the Securities and Exchange
Board of India (SEBI) as Category-I Registrar and Share Transfer Agent.
During an inspection carried out by SEBI, some irregularities were noticed
in maintenance of record by the company. Consequently, SEBI has
imposed a penalty of Rs.5 lakh on the company. The company wants to
file an appeal aga inst the SEBIs order before the Securities Appellate
Tribunal (SAT). Prepare a brief note describing the procedure for making
an appeal before the SAT.
(8 marks)

4. (a) What are the two segments of capital market ? Give a brief account of
some important reforms initiated in the Indian capital market during the
last one decade.
(8 marks)

(b) Your friend is keen to invest his savings in mutual fund schemes and seeks
your opinion. Prepare a brief note for him indicating various benefits as
well as risks involved in mutual fund schemes.
(4 marks)

(c) Discuss the role of stock exchanges in redressal of investors grievances.

(4 marks)

5. (a) Discuss the role and functions of depository participant in a depository

system. What are the eligibility criteria for registration as a depository
participant ?
(4 marks)

(b) List at least four money market instruments and explain the essential
features of any two of them.
(4 marks)

(c) What is non-banking financial company (NBFC) ? Narrate different

categories of NBFCs recognised by the Reserve Bank of India.
(4 marks)

(d) Briefly explain any two of the following :

(i) Demutualisation of stock exchanges

(ii) Due diligence certificate
(iii) Venture capital fund
(iv) Collective investment scheme.
(2 marks each)

2/2003/SLRFM Contd

6. (a) Discuss briefly the salient provisions in the listing agreement with regard
to corporate governance.
(12 marks)

(b) List out the salient features of the code of conduct prescribed by the
SEBI for stock brokers.
(4 marks)
7. (a) What do promoters quota shares mean ? What is the rationale behind
prescribing the lock- in period on promoters quota shares ?
(4 marks)
(b) The broad objectives of the money market are to provide a balancing
mechanism for short surpluses and deficiencies. Discuss.
(4 marks)
(c) What is the role and obligations of a compliance officer appointed in
terms of the SEBI guidelines ?
(4 marks)
(d) What is financial system and what are its constituents ?
(4 marks)
8. (a) You are the company secretary of Prefect Systems Ltd., which is a listed
company having paid-up share capital of Rs.50 crore. The company
contemplates an ambitious expansion plan of setting up cyber malls in
metro-cities and estimates capital investment of Rs.10 crore. The
promoters and development financial institution both agree to invest Rs.5
crore each in companys equity. The Board wants to make them
preferential allotment of shares and seeks your opinion.
Prepare a brief note explaining rules and guidelines applicable and list out
the steps to be taken by the company for making preferential allotment.
(8 marks)

(b) Distinguish between the following :

(i) Income fund and growth fund.

(ii) Listed securities and permitted securities.
(2 marks each)