Basket Trading System - Securities Laws And Compliances - Exam, Exams of Law

Download Basket Trading System - Securities Laws And Compliances - Exam and more Exams Law in PDF only on Docsity! 2/2009/SLC (NS) P. T. O. : 1 : 266 Roll No.......................... Time allowed : 3 hours Maximum marks : 100 Total number of questions : 8 Total number of printed pages : 4 P A R T — A (Answer Question No.1 which is compulsory and any three of the rest from this part.) 1. (a) State, with reasons in brief, whether the following statements are true or false : (i) Cumulative convertible preference shares are not hybrid instruments. (ii) Equity linked saving schemes have lock-in-period of five years. (iii) A depository is an organisation like Reserve Bank of India. (iv) In basket trading system, investor buys or sells all the fifty scrips in one go. (v) Hedge funds employ their funds for speculative trading. (2 marks each) (b) Re-write the following sentences after filling-in the blank spaces with appropriate word(s)/figure(s) : (i) Direct and indirect control of virtually all aspects of securities trading is provided by _________. (ii) Tracking stock is a type of common stock that ‘tracks’ depending on_________. (iii) CAMEL model encompasses_________. (iv) As per SEBI regulations, capital adequacy requirement for merchant banker shall be a net-worth of not less than Rs._______. (v) _________are imposed on the scrip which witness abnormal price/volume movements. (1 mark each) 2. (a) Write short notes on the following : (i) Corporate restructuring (ii) Trade to trade (iii) Margin trading (iv) Securities Appellate Tribunal. (2 marks each) : 2 : 2/2009/SLC (NS) Contd... 266 (b) Expand the following abbreviations: (i) D V P (ii) EDIFAR (iii) OMO. (1 mark each) (c) What are the ‘real estate mutual fund’ schemes ? Explain their features. (4 marks) 3. (a) Explain any two of the following terms in relation to securities reforms and developments in our country : (i) Corporate governance (ii) Financial disclosures (iii) Rolling settlement. (3 marks each) (b) Write a note on ‘treasury bills’. (5 marks) (c) Explain briefly the following : (i) BOLT (ii) NEAT. (2 marks each) 4. (a) Distinguish between any two of the following : (i) ‘Naked debentures’ and ‘secured debentures’. (ii) ‘Industrial revenue bonds’ and ‘commodity bonds’. (iii) ‘Indexed rate notes’ and ‘extendable notes’. (3 marks each) (b) Describe briefly the risks involved in mutual funds. (4 marks) (c) What do you mean by ‘dematerialisation of securities’ ? State its benefits. (5 marks) 5. (a) Discuss the various functions of ‘price monitoring’. (5 marks) (b) State the procedure for buy-back of securities through stock exchange. (5 marks) (c) Discuss the norms for registration of portfolio managers with the Securities and Exchange Board of India (SEBI). (5 marks)