Law of Investments and Securities · Semester 6

Law of Investments and Securities · June 2014 (New)

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Study aid only. Confirm statute numbers with the current bare Act and the official OU LL.B. (3-YDC) 2024–25 syllabus PDF.

Official previous-year question paper (PDF scan), OU LL.B. Year 3 Semester 2 (VI Semester). Download the file; question-to-topic mapping can be added later from this paper.

Osmania University · Faculty of Law

Law of Investments and Securities · June 2014 (New)

June (New) 2014 · Law of Investments and Securities · Semester 6

FACULTY OF LAW
LL.B. (3-YDC) III Year VI-Semester (New) Examination, June 2014
Subject : LAW
PAPER - III (C) : LAW OF INVESTMENT AND SECURITIES
Code No. 675
Note : Answer all questions. All questions carry equal marks.
Time : 3 Hours Max. Marks : 80

PART - A (5 x 6 = 30 Marks)
Answer any FIVE of the following:
1. Pre-Incorporation Contracts.
2. Doctrine of Indoor Management.
3. Reserve Capital.
4. Intercorporate Loans.
5. Issued Capital.
6. Composition of SEBI.
7. Intermediatories.
8. NBFC's.

PART - B (2 x 15 = 30 Marks)
Answer any TWO of the following:
9. Briefly discuss the evolution, growth and functions of the Financial System in India.
10. Explain the powers and functions of the SEBI.
11. Explain the guidelines for listing of shares in the Stock Exchanges.
12. Explain the role of RBI in the strengthening of NBFC's in India.

PART - C (2 x 10 = 20 Marks)
Answer any TWO of the following:
13. Ratnakar Ltd. wants to make a first call of Rs. 30 on equity shares of nominal value of Rs. 100 each on
16th October, 2013. Can it do so? Further, if the company proposes to make a second call on 7th
November, 2013, will it be permitted to do so?

14. Mary Gold Ltd., a listed company, decides to make a public issue of equity shares. Explain briefly the
eligibility norms to be complied with by the company as prescribed under the SEBI guidelines.
15. Amar subscribed for shares issued by Fast Trak Ltd. The prospectus of Fast Trak Ltd. included a
statement which was misleading in its forms and contents. On the faith of the prospectus, believing it to be
true, Amar subscribed for shares and sustained a loss. Can Amar sue for compensation of loss? If so, who
will be sued for such loss?
16. Ajay Ltd. borrowed Rs. 100 crore from Prem, without the authority conferred on it by the articles of
association. Later, the money borrowed by Ajay Ltd. was used by its Board of Directors to pay off lawful
debts of the company. In this scenario, Prem, the lender, seeks your advice for recovery of his money.
Advise him.

Part A · 6 marks

  1. Pre-Incorporation Contracts.
    Topics: Contracts in securities and prohibition of undesirable bargains
    Year and frequency →
  2. Doctrine of Indoor Management.
    Year and frequency →
  3. Reserve Capital.
    2× in bank
    Year and frequency →
  4. Intercorporate Loans.
    Year and frequency →
  5. Issued Capital.
    Year and frequency →
  6. Composition of SEBI.
    Year and frequency →
  7. Intermediatories.
    Year and frequency →
  8. NBFC's.
    4× in bank
    Year and frequency →

Part B · 15 marks

  1. Briefly discuss the evolution, growth and functions of the Financial System in India.
    2× in bank Topics: Pledge, transfer and SEBI's role in the depository system
    Year and frequency →
  2. Explain the powers and functions of the SEBI.
    2× in bank
    Year and frequency →
  3. Explain the guidelines for listing of shares in the Stock Exchanges.
    Topics: Recognised stock exchanges and listing
    Year and frequency →
  4. Explain the role of RBI in the strengthening of NBFC's in India.
    Year and frequency →

Part C · 10 marks

  1. Ratnakar Ltd. wants to make a first call of Rs. 30 on equity shares of nominal value of Rs. 100 each on 16th October, 2013. Can it do so? Further, if the company proposes to make a second call on 7th November, 2013, will it be permitted to do so?
    Year and frequency →
  2. Mary Gold Ltd., a listed company, decides to make a public issue of equity shares. Explain briefly the eligibility norms to be complied with by the company as prescribed under the SEBI guidelines.
    Year and frequency →
  3. Amar subscribed for shares issued by Fast Trak Ltd. The prospectus of Fast Trak Ltd. included a statement which was misleading in its forms and contents. On the faith of the prospectus, believing it to be true, Amar subscribed for shares and sustained a loss. Can Amar sue for compensation of loss? If so, who will be sued for such loss?
    Topics: Prospectus, deemed prospectus and shelf prospectus
    Year and frequency →
  4. Ajay Ltd. borrowed Rs. 100 crore from Prem, without the authority conferred on it by the articles of association. Later, the money borrowed by Ajay Ltd. was used by its Board of Directors to pay off lawful debts of the company. In this scenario, Prem, the lender, seeks your advice for recovery of his money. Advise him.
    Topics: Object, Board and registration of intermediaries
    Year and frequency →