Law of Investments and Securities · Semester 6

Law of Investments and Securities · May/June 2017

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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 · May/June 2017

May/June 2017 · Law of Investments and Securities · Semester 6

FACULTY OF LAW
LL.B. (3 YDC) III - Year VI - Semester Examination, May / June 2017
Subject : LAW
PAPER - III (C) : LAW OF INVESTMENT AND SECURITIES
Code No. 607
Time : 3 hours Max. Marks : 80

PART - A (5 x 6 = 30 Marks)
Answer any FIVE of the following:
1. Provisional Contracts.
2. Bonus Shares.
3. Capital Reserve.
4. Primary Market.
5. Listing of Securities.
6. Floating Charge.
7. Investor protection.
8. Undesirable transactions.

PART - B (2 x 15 = 30 Marks)
Answer any TWO of the following:
9. Explain the law relating to procedure for issue of shares and allotment of shares.
10. Explain the purpose of inter corporate loans and investments in companies.
11. Explain the advantages of the depository system in India.
12. Explain the guidelines for disclosure under the SEBI Act.

PART - C (2 x 10 = 20 Marks)
Answer any TWO of the following:
13. Ramu subscribed for shares issued by 'X' Ltd. The prospectus of 'X' Ltd. included a statement which was
misleading in the forms and contents. On the basis of the prospectus, believing it to be true, Ramu
subscribed for shares and sustained a loss. Can Ramu sue for compensation of loss? If so, who will be sued
for such loss?

14. Dinesh, one of the joint holders of shares of a company, sent a requisition to the company to split the
shares equally amongst him and the other joint holders, by issuing fresh share certificates. State whether
the company is bound to comply with this requisition.
15. Can a subsidiary company hold shares in its holding company? S Ltd held shares of H Ltd. before
becoming its subsidiary. Will it be necessary for S Ltd to surrender those shares on becoming a subsidiary of
'H' Ltd.?
16. X Ltd has received a letter from Murthy informing purchase of 1,000 equity shares of the company
through his broker, but the transfer deeds have been misplaced in transit. Advise on the procedure for
effecting transfer of shares in such a case.

Part A · 6 marks

  1. Provisional Contracts.
    2× in bank Topics: Contracts in securities and prohibition of undesirable bargains
    Year and frequency →
  2. Bonus Shares.
    Year and frequency →
  3. Capital Reserve.
    2× in bank
    Year and frequency →
  4. Primary Market.
    Year and frequency →
  5. Listing of Securities.
    2× in bank Topics: Recognised stock exchanges and listing; Contracts in securities and prohibition of undesirable bargains
    Year and frequency →
  6. Floating Charge.
    3× in bank
    Year and frequency →
  7. Investor protection.
    3× in bank
    Year and frequency →
  8. Undesirable transactions.
    Topics: Contracts in securities and prohibition of undesirable bargains
    Year and frequency →

Part B · 15 marks

  1. Explain the law relating to procedure for issue of shares and allotment of shares.
    Topics: Allotment, criminal and civil liability for misstatements
    Year and frequency →
  2. Explain the purpose of inter corporate loans and investments in companies.
    Year and frequency →
  3. Explain the advantages of the depository system in India.
    Topics: Depository, participant and beneficial owner; Pledge, transfer and SEBI's role in the depository system
    Year and frequency →
  4. Explain the guidelines for disclosure under the SEBI Act.
    Year and frequency →

Part C · 10 marks

  1. Ramu subscribed for shares issued by 'X' Ltd. The prospectus of 'X' Ltd. included a statement which was misleading in the forms and contents. On the basis of the prospectus, believing it to be true, Ramu subscribed for shares and sustained a loss. Can Ramu sue for compensation of loss? If so, who will be sued for such loss?
    Topics: Prospectus, deemed prospectus and shelf prospectus
    Year and frequency →
  2. Dinesh, one of the joint holders of shares of a company, sent a requisition to the company to split the shares equally amongst him and the other joint holders, by issuing fresh share certificates. State whether the company is bound to comply with this requisition.
    Year and frequency →
  3. Can a subsidiary company hold shares in its holding company? S Ltd held shares of H Ltd. before becoming its subsidiary. Will it be necessary for S Ltd to surrender those shares on becoming a subsidiary of 'H' Ltd.?
    Year and frequency →
  4. X Ltd has received a letter from Murthy informing purchase of 1,000 equity shares of the company through his broker, but the transfer deeds have been misplaced in transit. Advise on the procedure for effecting transfer of shares in such a case.
    Topics: Pledge, transfer and SEBI's role in the depository system
    Year and frequency →