PRACTICE QUESTIONS- SECURITIES LAWS AND CAPITAL MARKETS – 100 MARKS

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DECEMBER 2021 PRACTICE QUESTIONS

SUBJECT :
SECURITIES LAWS AND CAPITAL MARKETS–
(CS EXECUTIVE)

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PRACTICE QUESTIONS- SECURITIES LAWS AND CAPITAL MARKETS – 100 MARKS

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1. SEBI has imposed a penalty of Rs. 20 crore on Delta Company Ltd. However, due to problem
of liquidity, the company is unable to pay the amount of penalty. Explain, how the amount
can be recovered by the SEBI under the provisions of SEBI Act, 1992 (4 Marks)

2. An IPO is made by ABC Ltd., which is a listed company on the stock exchange. The Managing
Director of the company directs the Company Secretary to prepare details of half yearly
compliance requirements as per the SEBI(Listing Obligations and Disclosure Requirements)
Regulations, 2015. Explain the same (5 Marks)

3. What do you mean by Whistle Blower Policy? Explain. (3 Marks)

4. SEBI Complaints Redress System (SCORES) has been established to resolve the grievances of
the Investors. What is the procedure for redressal of investor grievances using SCORES
platform ? What are the matters that cannot be considered as complaints under SCORES ? (4
Marks)

5. Sweat equity shares may be issued to employee and directors of the company. In light of this
statement explain the provisions with respect to issue of sweat equity shares under SEBI (Issue
of Sweat Equity) Regulations, 2002 (3 Marks)

6. What do you understand by Market surveillance? Briefly explain the different types of Market
surveillance (3 Marks)

7. What is Unified Payments Interface (UPI)? How is public issue application using UPI different
from public isssue application using ASBA submitted with intermediaries? Explain (4 Marks)

ANSWER ANY ONE - QUESTION 8 OR QUESTION 9

8. Write Short Note of the following: (3 Marks Each)

9. Write Short Note of the following: (3 Marks Each)

10. Elucidate the eligibility criteria for a depository to provide depository services in India (4
Marks)

PRACTICE QUESTIONS- SECURITIES LAWS AND CAPITAL MARKETS – 100 MARKS

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PRACTICE QUESTIONS- SECURITIES LAWS AND CAPITAL MARKETS – 100 MARKS

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11. ABC Ltd (Acquirer) along with Person acting in concert (PAC) holds 24% shares in XYZ Ltd.
(Target Company). ABC Ltd. planning to acquire 5% shares of XYZ Ltd. Whether above
acquisition of shares would attract the provisions of Regulation 3(2) of SEBI (SAST)
Regulations, 2011 requiring open offer to the shareholders of the Target Company? (4 Marks)

12. Define and state the role and responsibilities of Research Analysts (3 Marks)

13. Explain the Stock Appreciation Rights Scheme (SARS). (3 Marks)

14. Startups companies have now come up with an Initial Public offer with relaxation of many
conditions applicable for Initial Public Offer. In this context, briefly, explain about the
“Institutional Trading Platform (ITP)” and eligibility for listing (3 Marks each)

15. What is meant by Anchor Investor ? What are the limitations of allocation to anchor investors
in the Book building process ? ? (4 Marks)

16. Credit Rating Agencies may not be taking cognizance of information for delays in servicing
debt obligations while reviewing of its ratings. What are the material events requiring a review
by the Credit Rating Agencies as per SEBI’s circular ? ? (4 Marks)

17. ST Ltd. applied for listing of instruments in a recognized stock exchange. However, permission
was refused by the stock exchange. Can the company appeal to SAT against such refusal ?
Explain ? (4 Marks)

18. State the prior conditions to be fulfilled for a nominee directors under the SEBI regulations for
ESOP eligibility. ? (4 Marks)

19. Explain the various risks involved in investing in mutual funds. (3 Marks)

20. The Managing Director of AB Ltd., a listed company wishes to implement the procedure for
voluntary delisting from a few stock exchanges subject to listing of at least one stock exchange
having nation wide terminals. As a Company Secretary prepare a note on your Managing
Director in the light of SEBI (Delisting of Equity Shares) Regulations, 2009 (4 Marks)

21. Nalin Estates Ltd. (“Target Company”) is a listed company. The promoter group shareholding
in the target company is 47%. It proposes to transfer of 2% shares held by one promoter group
to another promoter group. The target company sought your advise as a practicing Company
Secretary on the applicability of exemption provided under SEBI (SAST) Regulations for making
compulsory open offer (4 Marks)

22. The following is an extract of Balance Sheet of Alpha Ltd. : Equity Shares Capital — 50,000
Equity Share of ` 10 each. 10% Debenture Capital — 20,000 Debenture of ` 10 each. On 21st
April, 2018, the Board of directors decided to buy-back 5,000 equity shares for which they
PRACTICE QUESTIONS- SECURITIES LAWS AND CAPITAL MARKETS – 100 MARKS

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PRACTICE QUESTIONS- SECURITIES LAWS AND CAPITAL MARKETS – 100 MARKS

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would call Extra-ordinary General Meeting. In the year 2016, the company has defaulted in
payment of interest on secured loan to Bank amounted to ` 25 crore, which was remedied in
the year 2017. Comment on the above situation. (4 Marks)

23. “The holding of securities in dematerialise form is not mandatory”. Explain the relevant
provisions with reference to the Depositories Act (5 marks)

24. GK Ltd. is a listed company having paid up equity share of ` 8 crore, preference share capital
of ` 5 crore and net worth of ` 15 crore as on 31st March, 2019. The management intends to
implement a “Code of Conduct” for Board of directors and senior management under SEBI
(LODR) Regulations, 2015. You are required to prepare a draft agenda for the Board meeting
on the applicability of above provisions. Also advise on the situation, if equity share capital
increase to ` 15 crore, preference share capital to ` 8 crore and net worth to ` 35 crore (4
marks)

PRACTICE QUESTIONS- SECURITIES LAWS AND CAPITAL MARKETS – 100 MARKS

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PRACTICE QUESTIONS- SECURITIES LAWS AND CAPITAL MARKETS – 100 MARKS

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25. Raman Ltd. issued 50 Lakh equity shares at a price of ` 200 per share. The company provided
Green Shoe Option for stabilizing the post listing price of the shares. The issue was
oversubscribed and it was decided that stabilizing agent would borrow maximum number of
shares permitted by SEBI (ICDR) regulations. Due to rise in price during Green Shoe Option
period, only 5 Lakh shares could be bought back at the price of ` 180. You are required to : (5
marks)

 Calculate the number of shares that the stabilizing agent needs to borrow in this case at the
time of allotment and explain the same with relevant provisions.
 Explain the responsibility of Issuer Company in the above case with respect to shortfall while
exercising Green Shoe Option
 Calculate the amount if any, to be transferred to Investor Protection and Education Fund

PRACTICE QUESTIONS- SECURITIES LAWS AND CAPITAL MARKETS – 100 MARKS

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