Thank you for choosing a Shuchita Product! If you have any comment, observation or feedback, I would like to personally hear from you. Please write to me at arun@shuchita.com. Arun Kumar i
For any complaint/suggestion, please call on 09453029004 Get connected with your favourite Scanner on Facebook and Twitter www.facebook.com/scannerforcacscma www.twitter.com/sandcac For study tips, examination tips, main points of subjects like Accounts, Law, Tax, Audit, time tables, latest updates, fun and much more ii
In this edition Questions December - 2007 to June - 2017 Duly incorporated in chapters. Solutions December - 2007 to December - 2016 Duly incorporated in chapters June - 2017 Solutions attached iii
Preface to Solved Scanner Dear Readers, It gives us immense pleasure & satisfaction to present the Solved Scanner on Capital Markets and Securities Laws. As a student, we always felt the need of a simple but exam-oriented help-book on this subject. It encouraged us to share our experiences with the readers through Solved Scanner. This book is not only a compilation of answers of the questions, but answers are written only, as per the comments of examiners and in a manner so as to serve as help book also. The twenty fifth edition, inter alia have following un-parallel features; The questions asked in last 20 attempts (upto June 2017 are scanned and arranged as per study module of ICSI. Each chapter starts with Short Notes, Distinguish Between, Descriptive Questions & in last Practical Questions. The answer of question is divided under suitable headings like:- Meaning, Features, Regulated by, Significance. A graph is given at the beginning of every chapter, showing weightage of each chapter & various types of questions asked. We are really thankful to all those professionals & dear students who always inspired & encouraged us. We thankfully acknowledge the co-operation received from everyone at Shuchita Prakashan, the Publisher, for presenting the book in fine-print & excellent get-up in record time. Finally, we shall be glad to receive the views, comments, criticism & suggestions from the readers for further improvement of this book, which will be acknowledged in the succeeding editions. Wishing Grand Success Prof. Arun Kumar CS. CA Rajiv Singh iv
Praise for Solved Scanner Solved Scanner is like a cup of tea for exams and without it we can t get success in minimum time. Roop Chand Kochar, Jodhpur Solved Scanner is the honest approach towards the requirements and acquaintances of the probable questions and important topics for preparation of the professional courses like CA or CS. It motivate the students to work harder in right direction with confidence and acts as a support and confidence booster. Sushil Kumar, Patna Solved Scanner is the best and the most important book for the preparation of any professional examination. According to my view, without the help of Solved Scanner, preparation by any student is incomplete. Solved Scanner and its contents make every student fully prepared for examinations. Manisha Singhania, Jaipur Solved Scanner is a helpful friend which tells us how to go through the syllabus and prepare well for examination. Ansh Sharma, Delhi Without Solved Scanner, nobody can pass the professional exams. It is a great book. Thank you for giving it. B. Satish Krishan, Coimbatore v
Green Edition CS Executive Programme Module - II (New Syllabus) Paper 6 - Capital Markets and Securities Laws Editors: Prof. Arun Kumar M.Com., D.Phil., AMT (AIMA), ISO Lead-Auditor (UK), CISA (USA) Professor, Motilal Nehru Institute of Research & Business Administration, University of Allahabad, Allahabad CS. CA Rajiv Singh M.COM, UGC-NET, Fellow Chartered Accountant, DISA (ICAI) Associate Company Secretary ICAI, ICSI, New Delhi ISO 9001: 2008 Certified Shuchita Prakashan (P) Ltd. 25/19, L.I.C. Colony, Tagore Town, Allahabad - 211002 Visit us at : www.shuchita.com Price : ` 230.00 vi
Information Solved Scanner is published in India by Shuchita Prakashan (P) Ltd. 25/19, L.I.C. Colony, Tagore Town, Allahabad 211002. Editor-in-chief : Mrs. Anjali 'Solved Scanner' is registered trade mark of Shuchita Prakashan (P) Ltd. Copyright of the content is exclusive property of the authors Prof. Arun Kumar and CS. CA Rajiv Singh. Trade mark 'Scanner' is being lent to the content provided by the authors under exclusive arrangement for publication of the content by the owner of trade mark 'Shuchita Prakashan (P) Ltd'. Trade mark 'Scanner' cannot be used by any other person/organisation/agency with the content of this book or otherwise. First edition : January 2009 Twenty fifth edition : July 2017 "Scanner is a living document and is being updated after every examination since its inception" Every effort has been made to avoid errors or omissions in this publication. Inspite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to the notice to the publisher or authors which shall be taken care of in the next edition. It may however, be noted that neither the publisher nor the authors or seller will be responsible for any damage or loss of action to any one, of any kind, in any manner, therefrom. It is suggested that to avoid any doubt, the reader should cross-check all the facts, laws and contents of the publication with original publication or notification. No part of this book may be reproduced or copied in any form or by any means [graphic, electronic or mechanical, including photocopying, recording, taping, or information retrieval systems] or reproduced on any disc, tape, perforated media or other information storage device etc. without the written permission of the publisher. This book can be exported only by the publisher. Breach of this condition is liable for legal action. For binding mistake, misprints or for missing pages, the publisher s liability is limited to replacement within one month of purchase by similar edition or the next edition, if published and available. All expenses in this connection are to be borne by the purchaser. All disputes are subject to ALLAHABAD jurisdiction only. vii
Published by : Shuchita Prakashan (P) Ltd. 25/19, L.I.C. Colony, Tagore Town, Allahabad 211002. Phone (0532) 2465947, 2467045. E-mail : care@shuchita.com Visit us : www.shuchita.com Contact : For any complaint/suggestion, please contact Personal Secretary to the Director on Mobile No. 09415316894 or email to director@shuchita.com Laser Typeset at : Shuchita Prakashan (P) Ltd. Price : ` 230.00 ISBN : 978-93-5159-460-4 To advertise in our Products, please contact Marketing Manager Ph: +91 9450961692 viii
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Contents Paper - 6 Capital Markets and Securities Laws Chapter Name Page No. Study Material Based Contents 6.3 Syllabus 6.5 Examination Trend Analysis 6.8 Line Chart Showing Relative Importance of Chapters 6.14 Table Showing Importance of Chapter on the Basis of Marks 6.15 Legends for the Graphs 6.17 Formula Table 6.18 1. Overview of Capital Market 6.19 2. Capital Market Instruments 6.31 3. Credit Rating and IPO Grading 6.58 4. Market Infrastructure Institutions - Stock Exchange Trading Mechanism 6.75 5. Debt Market 6.126 6. Money Market 6.143 7. Mutual Funds 6.167 8. Alternative Investment Fund 6.197 9. Collective Investment Schemes 6.210 10. Resource Mobilisation in International Capital Market 6.223 11. Indian Depository Receipts 6.251 12. Foreign Portfolio Investors 6.265 13. Non-Convertible Redeemable Preference Shares 6.275 14. Real Estate Investment Trusts 6.281 15. Infrastructure Investment Trusts 6.298 16. Regulatory Framework Governing Stock Exchanges 6.315 17. Securities and Exchange Board of India 6.322 x
18. Depositories 6.337 19. Listing and Delisting of Securities 6.356 20. Issue of Securities 6.386 21. Regulatory Framework Relating to Securities Market Intermediaries 6.453 22. Insider Trading - An Overview 6.484 23. Takeover Code - An Overview 6.513 24. Investor Protection 6.529 Question Paper of December, 2015 6.547 Question Paper of June, 2016 6.550 Question Paper of December, 2016 6.553 Question Paper of June, 2017 6.557 List of Rating Symbols 6.561 List of Regulations 6.565 xi
Dedicated To My Parents Shri Ramashankar Singh and Smt. Sunita Singh xii
UNIQUE FEATURES An Examination Trend Analysis for question paper based contents of last five examinations of Module II before the paper. Questions are arranged according to the subject/topic in ascending order of examinations/years. Graph for every chapter, showing marks allotment for last twenty examinations amongst Short Notes, Distinguish Between, Descriptive Questions and Practical Questions. (Or) for Optional Questions. Analytical Classification of every Chapter in Four Categories: (1) Short Notes, (2) Distinguish Between, (3) Descriptive Questions and (4) Practical Questions. 100% Correct Answers of Practical Questions. Frequency table showing distribution of marks & compulsory questions to identify important chapters. Chapters are classified mentioning in brief the coverage of the chapter. Line chart Showing Relative Importance of Chapters. Complete list of Repeatedly Asked Questions at the end of every chapter. Complete Questions and Solutions. Complete Question Papers of December 2015, June 2016, December 2016 and June 2017. Pleasant get-up. xiii
Opportunity!!! Make Your Solved Scanner Error free! Win ` 50 per Mistake Scanner is the product of immense effort of our team and we feel great pride to make timely editions of such a volatile product for our students. Still some human errors creep in. We want you to participate in making the Solved Scanner completely error free and at the same time, make money as well. How to Participate: 1. Find out any kind of mistake/error what so ever it may be, including spellings etc. in this edition of Solved Scanner. 2. Mention about the mistake/error found by you. 3. Give its exact pinpoint location by mentioning the book name with edition number (July 2017), the page number, and the line number. 4. Please mention what according to you should be the correct thing. 5. Send your information giving your name, address, mobile number and complete postal address including the pin code no. and e-mail address. Editor Shuchita Prakashan (P) Ltd. 25/19, L.I.C. Colony, Tagore Town, Allahabad - 211002 Online feedback: shuchita.com/feedback E-mail: ask@shuchita.com For any other information Please Call : 7080812686 6. The editorial board will verify the mistake/error pointed out by you and if adjudged correct, then you will be credited ` 50 in your paytm/bank account. 7. You will also receive one free copy of Solved Scanner or any other as per your choice. Note: If you are sending one or more mistake/error from one particular book, you are entitled for one free copy of Scanner of your choice only. 8. Last date for sending the query is 30 th November 2017 for July 2017 edition. 9. The decision of the Editorial Board will be final and binding. xiv
Shuchita Prakashan Solved Scanner CS Executive Programme Module-II Capital Markets and Securities Laws Paper-6 (New Syllabus) For Dec 2017 Exam 50% OFF Publisher : Shuchita Prakashan ISBN : 9789351594604 Author : Prof. Arun Kumar, CS. CA Rajiv Singh Type the URL : http://www.kopykitab.com/product/12268 Get this ebook