Osmania University · Faculty of Law
Law of Investments and Securities · July/August 2019
July/August 2019 · Law of Investments and Securities · Semester 6
FACULTY OF LAW
LL.B. (3 YDC) III - Year VI - Semester Examination, July / August 2019
Subject : LAW
PAPER - III (C) : LAW OF INVESTMENT AND SECURITIES
Code No. 15161 / BL
Time : 3 Hours Max. Marks : 80
PART - A (5 x 6 = 30 Marks)
Answer any FIVE of the following:
1. Investor Protection.
2. Transmission of Shares.
3. Stock Exchanges.
4. SAT.
5. What is a depository?
6. What is investment risk?
7. What is demutualization?
8. What is hybrid security?
PART - B (2 x 15 = 30 Marks)
Answer any TWO of the following:
9. Examine pre-independence and post-independence historical evaluation of securities laws in India.
10. Define the forms 'Securities' and 'Stock Exchange' under the SC(R) Act, 1956.
11. Define share and distinguish shares from debentures.
12. Explain the concepts of 'Corporatization' and demutualization and discuss the procedure for
corporatization and demutualization under the SC(R) Act, 1956.
PART - C (2 x 10 = 20 Marks)
Answer any TWO of the following: (item 16 incomplete in source photo)
13. A Public Limited Company is interested in sending machinery outside India on lease terms. Advise in the
light of FEMA.
14. 'A', a trader, carried on business under the name of 'A's Co. Ltd.' without being registered as a company
with limited liability. Decide the consequences of the act of A.
15. 'X' company lends 'Y' Co. money on a mortgage of its assets. The procedure laid down in the Articles for
such transactions is not complied with. The directors of the Z Co. are the same. Is the mortgage binding
upon 'Y' Co.?
16. Three Singapore nationals who have never been to India have decided to be the shareholders holding
100% equity shares and the only directors of a private company in India in the year 2017 which is not a
subsidiary of a Public company. Comment.