Taxmann's Corporate Funding & Listings in Stock Exchanges (Corporate Funding)

Contents % ' ! 0

Chapter-wise Marks Distribution

I-5

Previous Exams Trend Analysis (June 2019 Onwards) (New Syllabus)

I-7

Chapter-wise Comparison with Study Material

I-15

PART A CORPORATE FUNDING (60 MARKS) Chapter 1

1.3

INDIAN EQUITY PUBLIC FUNDING

Chapter 2

2.1

REAL ESTATE INVESTMENT TRUST

Chapter 3

INFRASTRUCTURE INVESTMENT TRUST

3.1

Chapter 4

INDIAN EQUITY - PRIVATE FUNDING

4.1

Chapter 5

INDIAN EQUITY - NON-FUND BASED

5.1

Chapter 6

DEBT FUNDING - INDIAN FUND BASED (CORPORATE DEBT)

6.1

Chapter 7

DEBT FUNDING - INDIAN FUND BASED (GOVT. DEBT & BANKING FINANCE)

7.1

Chapter 8

DEBT FUNDING - INDIAN NON-FUND BASED

I-17

8.1

3 4 . % 4 . / #

I-18

% ' ! 0

Chapter 9

FOREIGN FUNDING - INSTRUMENTS & INSTITUTIONS

9.1

Chapter 10

10.1

OTHER BORROWING TOOLS

Chapter 11

NON-CONVERTIBLE REDEEMABLE PREFERENCE SHARES

11.1

Chapter 12

12.1

SECURITIZATION

PART B LISTINGS (40 MARKS) Chapter 13

LISTING - INDIAN STOCK EXCHANGES

13.3

Chapter 14

INTERNATIONAL LISTING

14.1

Chapter 15

PREPARING A COMPANY FOR AN IPO AND GOVERNANCE REQUIREMENTS

15.1

Chapter 16

DOCUMENTATION

16.1

SOLVED PAPER : CS PROFESSIONAL DEC. 2020 (NEW SYLLABUS)

P.1

SOLVED PAPER : CS PROFESSIONAL JUNE 2021 (NEW SYLLABUS)

P.22

SOLVED PAPER : CS PROFESSIONAL DEC. 2021 (NEW SYLLABUS)

P.37

SOLVED PAPER : CS PROFESSIONAL JUNE 2022 (NEW SYLLABUS)

P.51

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R O T C E R I D T N E D N E P E D N I N !

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5.1

TAXMANN®

E M E H C S A S N A E M A S I

H C I H W R E D N U

Ineligible Employee:

Eligible Employee:

Definition:

INDIAN EQUITY - NON-FUND BASED

CHAPTER

PAST YEAR’S EXAMINATION QUESTIONS EMPLOYEES’ STOCK PURCHASE SCHEME (ESOP)

Q1. Write notes on: Employees’ Stock Purchase Scheme [(Dec. 2012) (4 Marks)] [(Dec. 2018) (4 Marks)] Ans.

As defined in SEBI (Share Based Employee Benefits) Regulations, 2014, Employees’ Stock Purchase Scheme (ESPS)

S A E T A P I C I T R A P T O N N AE CM YE NH AC PS ME OH CT N EI HE T T FA O P I SC E I R T R A HA SP YT O T I E U L QB EI G GL I NE I D T NO AN T S S I T U E OH

SSE H T R E S H CU EET I C H Y R RE I O F WT OC L F F I P RA O R EP E M S DH ERBD I NG O U R R E T O UO C C N S R EH S I E BM R R MT UR I E ER CDSE I HO F HOT F CY T E C O S L URD AT S E SOR R SC SEP E O NR E T AI VSA A C ED EIHT G R M C N A I H R O D vI E CU OH T I T PA T P O N OD EWT E K Y V T R C I NH U G O A G T T NF I S U R O I F E I R T S E A O P E Y T I O T O I N A F E L AE P Y HP NN T M SMEA E NO BP AC S EM T E HO N RT MO A C R YSE G E NE H Y A T N PYF O A O ML hP S OPE M CMR O AEA C RH FO O A S

S R E D L O H E R A H S Y B L A V O R P P A O T T C E J B UN SI O T S U IL O NS OE I T R P L OA I C KE CP OS T S A FH O G U EO UR SH S T )

S T I D N A N O I T P O F O T N A R G N E E W T E B R A ED YE B ER I NC OS E FR O P DN OE I E R E B PS A MH UG MN I IT N S I E -V

As defined in SEBI (Share Based Employee Benefits) Regulations, 2014, Employee Stock Option Scheme

As defined under section 2(37) of the Companies Act, 2013 “Employee Stock Option”

Important Points to be noted for “Employee Stock Option”: TAXMANN®

' . ) $ . 5 & % 4 ! 2 / 0 2 / # ! 4 2 ! 0

5.2

EMPLOYEE STOCK OPTION

Q2. Write note on : Employee stock option. [(June 2011) (4 Marks)] [(June 2013)(3 Marks)] [(June 2016) (4 Marks)] Or

Write note on: Employee Stock Option Scheme (ESOS) [(Dec. 2015) (4 Marks)] Ans.

Y R A I D I S B U S F O E E Y O L P S R ME ED L OO T H EE L R B A AH L I S A VF AO L EA DV AO R MP EP BA E YH AT MH T NI OW I T Y P N OA KP CM OO T 3 C

S DR NO AT C EE CR NI E$ DF NO ED T N R I A R O E P"Y UET SH I R ET O HO FJ T A REM E E DT N T NI I UM S R E O BMT LOC L CE A R HNI SO D IT NT OA N I SE T N P D OEN E KPP CME O OC D T S N AI FF O G NOI N ONS I O I T I R A T P C R E EM R PI O /D C

SWEAT EQUITY SHARES

[(June 2014) (5 Marks)]

Q3. Write note on: “Sweat equity shares

Explain the following: “Sweat Equity Shares”. [(Dec. 2017) (3 Marks)]

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Q4. Explain the provisions of the Companies Act, 2013 for issue of Sweat Equity Shares. To what extent the Sweat Equity Shares can be issued to an Independent Director? [(June 2019) (5 Marks)]

TAXMANN®

FM CI ENO POH SI T W NA ORT O I E T D S U I E L S O E NY SO E O CL R EEP HI CM 4R E PR TO E S KR RO A T MC ED TR E N IU EDS R FI S R UOE SB CE SO SS E AT R L E A HCR SRA FOS O E S R RSA A E L H BC S MEY UHI T NTU EDQ N HA E T H SYC E NU I F AS I

Non-Applicability:

Applicability:

S T R A P O W T O T N I D E D I V I D v R E D N U E R E H T E D A M S E L U 2 D N A T C ! S E I N A P M O #

$ % 3 ! " $ . 5 & . / . 9 4 ) 5 1 % . ! ) $ . ) ( #

F O S N O I S I V O R P G N I N R E V O '

SEBI (Issue of Sweat Equity Shares) Regulations, 2002:

“Sweat equity shares

Inclusion of information in such resolution:

In case of listed companies:

Authorization by way of Special Resolution:

Companies Act, 2013 and Rules made thereunder

Definition of “Sweat Equity Shares As per Section 2(83) of the Companies Act, 2013: “Sweat equity shares”

STRR N A OO SU S W T O E H O R C A G S HI HI R SDWY YAOR T T TNE I A KP U QSRO EEIR E HP HET Y CO L A UL GU SP NT I S C D NMI E L AEV L EROE MORTD SPNE I R R F L OO L O T A FE C C v H E SRE R U I A T M D CA A SNNN T A I R HEE H OT T T V YRNT E E I NH SA AT T H POH GW MNI ORY OI B CT E L S AAB R N A E YD L O I BI I A T I DSVD ENAD UOGA SCN R S E I I O K U F ER L AA R OMV A Ans.

5.3

Authorization by way of Special Resolution:

Inclusion of information in such resolution:

In case of listed companies:

TDD U N E OA S I T YA L LL I NI U T BOP A SHC S E A VC T R O E NN S I E E R DR EEA S ETT C R EE F L S L FO S O A TCD U ME OUX I EIF DMF AEO R MP N O NSI E EI T A EI T U BR L SUA A CV HEE S R ER Y UO B SS S T D I I E SF T UOA NRE OPR E C BN S TI E A U V HNR T E E EG S R E UER SHE T NF H %O T

RFN OOO I TT TC S U EB E R PI E SR T E T N R N I O FNC I O RS TO A N T EI H MYC U YBS ADS PE E NUE S I Y S DI O L ES P T E L I M U T I AR EC F T UEE E DCHS E T TS FU O T O N NB SO SEE B D A U HRD Y T YO I U NSYT R T AI OA T PS R O U MP G T A OET D CDS N EDFU HE OF T XTT I TF NN A E FED HO MI T TYV EC R AO UEPR SPEP S NE HT O %R T

D N E D I V I D F O U E I L N I E D A M T O N S I E U S S I S U N O B E H T T A H T E R U S N %

O MT N OE CK EA HT T E FB O D NL OU I O T A H I S C S OP SE S T A S FT O O SN E F L I C I S T R E A R A EH HS T S NU I NN OO B I S Y F I L V O B O A RET I PUU S S AI S S E E BGL N I C DT T I L T IR U OMA HRE SEH EPT R Y R E E NT HA L 4PA

YSDI NE R NI R A AEG DU PR E T E UN MAR E S ES OG S B II CN E H AATE$ B FHN D I C O O N )T X" A SE E E L K%RA R T A C3AI HO SP Y E STB A S R # YDEA T D H I E E ASR U S A QI YH ENMT 3 TGSI O U N A C Q O S EE I E E WRT I T A N SAL A A UE ENG P HO EWM S 4D2 O E E # E T H S HT F I T L O D EHE T R T I A E S W I L L SE U E T2 R CO A NNH HA T E I SD R W RA YO T E I CYC U QCEN EAHA T DS EN I F RE S I OL ODD CU E HU NC WS AA2

SDY E T N I I F AU I Q C EYE N PA H SF C NI U ONS I O T I M U T L A O O R H SE E DW R I ESO HNT O S 4C E E EY CO I L R PP TM E E KR RO A MR S TO N T C EE R R R UI CDD FE SO E U R SS E A S HSI SSE A B FC L O O RRT E E BOR S A MS S UAE L NC R A EEH HS HT T

DG EN Z I I T R E OE HM T U L AA R SE I N EE UG SE S I H ET HN 4I Y N A P M O C E H T Y B D E S S A P N O I T U L O S E R L A I C E P S A Y B E U S S I R O F D E L T I T N ED TE O U NS S EI R Y A D YA NR E AL PA MS E OR #A H ES HF T FO O S S RA OC L T C EA R F I O D S TE N R EA DH NS EY PT EI DU Q NE I EA T HE T W OS SF L ! O

STEPS INVOLVED IN BONUS ISSUE OF LISTED ENTITY

Q5. Discuss briefly the steps involved in the issue of bonus shares by a listed company. [(June 2011) (7 Marks)] TAXMANN®

S G Q N NE I O D I T RTI OAD CEN CWO !SC EG UN SI S I W YO AL L O MF YE NH AT PF MI OD CE U AS S I Y D A TE C R L !A SS E E I R N A AH PS MF OO #S S EA HC L T FA O F OD S E E NR L L OA I I F T L HU C ESF 3YE T I R OU A T

' . ) $ . 5 & % 4 ! 2 / 0 2 / # ! 4 2 ! 0

5.4

Ans. Issue of Sweat Equity Shares under Companies Act, 2013:

Ans. A Listed Company issuing bonus shares should ensure that the issue is in conformity with the provisions of Companies Act, 2013 and SEBI (ICDR) Regulations, 2018 as well as Companies Act, 2013:

SS I EE UG SN S A I SH UC NX O% BK RC OO F T L3 A E S OH PT OO RT PD E EI HI F T T HO D CNE I T ES H I WBL DE TL A R U GOA S NHE I S T R E DA EE H -RS E S D DI RS Y A N NA OO "C P EEM HB O T FOC T O E D H EE T T S A E O DP R E EO H HR W 4P

D R A O " E H T Y B D E V O R P P A L A S O P O R P E H T T E G D N A G N I T E E D R A O " E H T D L O ( X % K C O T 3 E H T O T G N I T E E M L A R E N E G F O E C I T O N E H T FD O E N SR E I E P C ON CO EC ES R HE T G DN NA EH 3C

SG UN I NT OE BE FM O E EH UT SF S OS I RSE OGG N F N I D A NE H OE I T CC U OX L R% O SPK E C EO R HT ET3 F HO T D E TYN E PR GO E DCC N!N A O S C GR E E NB I H T T E EMO MET M D LYE A D BR R E A NDW E ES R GS O EAF HPE T SB E DR O L A T O HS (S I

E R O F E B D E N R E C N O C S E G N A H C X % E KT CA OD T 3 D R EO HC T E R O T E ER CU I S T O O L NC K S Y O AO DB NF EO VE ET S A ED VE I H 'T

ES H T E NG G I N N H I A T D I H R WA C X SG% E E I R K N D C AE O PN T R3 ME OC E #N H FOTD C O O E T T SN R T O A E OL L R I G T T A S N A I S AC G E I H EC L R P 2X A PH E%AS HKNS T CAU HOT N T T IO I 3 MB WE TBE TA UH N EMST I DG MT N N N T) I A O T L S T E L I N A L D EA R FM O O TMF NL O SD T RL E N UA N T FER E O ME R C ESTN Y O L L AL O I & DA C

OPTION TO PARTICIPATE IN ESOP/ESPS

Q6. Comment on the following statements: The option to participate in ESOP/ESPS scheme is not open for all employees of the company. [(Dec. 2013) (4 Marks)]

TAXMANN®

T FC STO SU R N E E N J DOEDB R M L BE A U O S O HGP L "N EN R I E MEK A K IH HAS A TT SMA FS KRHOA EO EGS EF U NU S S I SI T S N OE E T VSEO UMB DRN E E ES C OEN R E I BHU R U QRETO EOHFN O R ST N E N T SI A T A FOA I O O T WR DT A I E N YPC HO NFO I AOSTS S I P MC MN!OE L O F A RD I OT O F V CA O ZESER H L H EI C L T P T HA I N P T T N T R I A OI ! EP ES R AEMR E R HCHOEE H T R D WW WO L RT O F E RLPNSH R I E A E H O R VVST T A EOAI H WREWCS E U P R OP SDI O S (A E$T I

NN PI O H AT I T EI P HWO T EE RU H E ST T S F E I A SV EUA UNH SOT S BO I N SDT UES T NN U OE M BM DED ELN CPA NMA L UIV OSO NAR NHP A D P NA SA A F HR SO E YO NTTN ACAO D E PR I S E MIH I C O$T E CFMD O E E D OH HR RT T F A TOSG A Y N H"A I F T G DN EO L N A R UAEH E SVT C O NR FF I %P O F

S E G N A H C X % K C O T 3 E H T E T A M I T N I G GI N NT I E T E E EME DH RT A F OO "E EM HO T C RT E U T O F A E YH L T E T G A N I I D D ER MA G ME )R

$ % 3 ! " $ . 5 & . / . 9 4 ) 5 1 % . ! ) $ . ) ( #

L A NT ON CE RD OC I F N GI NF I O T E EP -U G DN RI A K OA "T E EH HT T G RN OI F S I ER T O A H DT EU HA T R XO I F F DD NN S AAR LE LA A T ST S OOA PP OOM RRT PPN A EED H HT N T E EGT N S T I I A L R A E D ND N I IA & S

EY R BA DS L S U E OC HE SN E UTL O SN A S T I I FP SI A U C NY OND BAE S DPR I EMO S OOH PCT OEU RHA PTE EFH HOT L T E A S YI T A BP E DAR ECC S N DI A EEO S R T I C R N NO I E H K ST A A U T LA A E T EB I HO P ATT CNE EIV H R T A A I H HW SL S P EL E HET 4WS

5.5

P U O R G R E T O M O R P E H T O T S G N O L E B R O R E T O M O R P A S I O H W E E Y O L P M E N A

YGS NNE I AU L C PS I T SR MI A OF CO S T I O E S NO Y B PD RE US PR I O TEH H C T T !R U SOA F E S I SI N T AEI PVS R E S MS E OE L N #RU ERS HOE T SR T A I FF O H OS RS P U SN T I O NEB S OI P I L T U A C T EI D P S I A A RC P E L Y PL L A L SH U !S F

HF GO U O R HN T RA OH ST E E VR I O T A M L E SY R D N SL I A O H P H HY M GL O UT OCC E RR E HI H T T RDF ONO FIS R L OE E S R YA L MT H IC H ES YRY T BII RDU E EQ HT E A T I R G E N OOI HPD R WON A RCT OYS D T T C OU EB O R YE I D NH AAT

D E I L P M O C E B O T S T N ER ME D EN R I U U QS EA R N EE HV I 4G E R A E U S S ) S U N O " G N I K A M E L I H W H T I W

Conditions for issue of Bonus Shares:

“Bonus Shares”:

E YL NB AA PT U MB OR I CT AI S YD BD DE T EA T T L O U L L M A U SC E C R A A HT S SI EG HN T I Z NL I AA ET I MP A SC E R Y A B HT 3S O SC UF NO OE "E R F S R E B M E S MT I SF T O I R OP T Ans.

T U AB I D Y NN ) A FP O TM U O OC E AT I A D I C NO ) S NS I A YN R A A I F D O I S BY UN SA AP FM O O EC VE OH BT AF DO EY NN I A F E DPE M SO D A U L ECC EGN YNI OIT D L L O P O N MH S EAE NFO !O D Thus, the given statement that “The option to participate in ESOP/ESPS scheme is not open for all employees of the company” is correct.

BONUS SHARES

Q7. What is a ‘bonus shares’? What are the conditions to be satisfied before issuing bonus shares? [(June 2014) (6 Marks)] TAXMANN®

T U B T O N R O R O T C E R I D E M I T E L O H W A RR E O HT T C E E HR I WD YT NN AE PD N ME OP CE ED HN T I FN O A RG ON T I C D EU R L I C D X !E Ans. As per definition of “Employee” it includes:

E D I S T U O R O A I D N ) N I G N I K R O W Y N A P M O C E H T F O E E Y O L P M E T N E N AA MI D RN E 0) F !O

' . ) $ . 5 & % 4 ! 2 / 0 2 / # ! 4 2 ! 0

5.6

It is quite clear that all employees are not eligible to participate in ESOP/ ESPS.

Note: No issue of bonus shares shall be made by capitalising reserves created by the revaluation of assets.

FS O R GT O NC I T E E R EI M$ F LO A R D E R NA EO G" AE NH I T SF R O E DN L O O I HT EA R D A HN SE EM HM T O YC BE DR EE Z H I T R ON HO T U Y AN NA EP EM BO SC A HE H TT )

N I T LI A PY I B C ND I E R U PS RS OI Y TN S A E R F E I T S N I E I FI T O R U TC N E ES MT YB AE PD ER HO T S T NS I I O DP EE T L D U D AE F E X I DF TF O O NT C SE A P HS E TR )

T DO SE E CN R L UNL T UA N H EOS BNE ENU $AS DEI S C NN S AO U LS A N T AO I HB P A H A #C I G EH R N I A D HWN 3YE N SAME E PM M I N A AMOS POCE MCEH OERT H D #TR W T FA A A O OR H D T"H S S EE T T I L I T U W F A 2T O Y S L O N T T O N G I E S N I U I C D Q RSEE D O E S CL B E CUH U !2T S

TAXMANN®

R E D L O H E R A H S Y B D L E H E B O T D E R I U Q E R S E R A H S F O E U L A V T E K R A -

Amount (INR)

Particulars

S E R A H S F O E C I R P L A T O 4

O T

M O R F T I L P S K C O T 3

E R A H S S U N O " F O E C I R P E U S S ) D D !

$ % 3 ! " $ . 5 & . / . 9 4 ) 5 1 % . ! ) $ . ) ( #

S E R A H S S U N O B E H T T C !D N SE E D I I N V AI PD MF OO #U E FL I O N I D E U S NS OI I T E C B ET 3O RN E L PA L SH !S

L FL O A EH US S ST S I E S FS O A ED S E OX PI RF UF PO EN O HI T T RA OU F L h A TV A E HR T Y TB C ED R E R T OA CE R SC I S TE N V ER ME S EE T A Rv T D EE S S NHI ETA L S VE T I I R G P A EH A HS C T SE SUB UNT HOO 4BN

T O L L A F O E T A D E H T N O G N I D N A T S P T U U OD YI NA AP Y FL I L SU E F R E A HD SA PM UN DE I E A PB E YV L T A R H A PT EN HE 4M

ESL D BTU E S TS O O C A NE S T DHF I L TO U FR OI HRP SEH V SE C T U E WS S OD S A (E I S Dv S L EE A XV E I F RR FEE S O R E A R NL S SE OA T I I T S T F I A O O P UA RP L CPR A VhEU E ER HP R T N A O YSDI T BENA V S DRAI EEDA L L S T O E A T I ERSP R EYA C S L C T E EH N R V4 E O R UF E Q D S D E E E E S S R S I BL I LU EA I T HT SU I T P EE SA R !C B A Ans.

No Bonus Shares in lieu of dividend:

SY E T I UU DT A YR R OG T D U N T U A T F S T N FE O D TI N V EO R MP YO AT PN EO HT I T U FB O I R TT C EN PO SC E S R A NH I C DU ES T L S U E AE F Y E O DL S P TM U O N NEO SEB A HD HT N FA TO )

5.7

Q8. Comment on the following: For the purpose of issue of bonus shares, the reserves created by revaluation of fixed assets shall not be capitalised. [(Dec. 2016) (2 Marks)]

Q9. Jai Ltd. announced issued of bonus shares in the ratio of 1:3 (i.e. one share for every three shares held). At present the face value of share is ` 10, current market price is ` 621. In addition, it announced split of shares by reducing the face value from ` 10 to ` 2. Calculate the share price if all other things constant. What would have been the situation if split would have been done before the issue of bonus shares? [(Dec. 2015) (5 Marks)]

Ans. Situation 1: Stock split post Bonus Issue:

Particulars

93.15 Average price (1863/20)

R E D L O H E R A H S Y B D L E H E B O T D E R I U Q E R S E R A H S F O E U L A V T E K R A -

Amount (INR) Particulars

T I L P S K C O T S T S O P S E R A H S F O O .

D E V I E C E R E B O T S E R A H S S U N O " F O O .

S E R A H S F O E C I R P L A T O 4

5 shares

E H T F I N O I T A U T I S E H T N I ES GE NR AA HH CS OS NU EN BO B DF L U O OE WU S ES R I E E HR T O TF A E HB T E YC AA S L NP AN CE EK A WT T EI R L P OS F E K R C E O HT 4S 93.15 Average Price (1863/20)

Amount (INR) 20 shares

T I L P S K C O T S T S O P S E R A H S F O O .

Success Ltd., a listed company with an authorized, issued and subscribed capital of ` 35 crore comprising of 3.5 crore equity shares of ` 10 each and paid up capital of ` 34 crore decided to issue bonus shares in the ratio of 2:5. As a Company Secretary enumerate the steps involved in such an issue. [(June 2017) (8 Marks)] TAXMANN®

' . ) $ . 5 & % 4 ! 2 / 0 2 / # ! 4 2 ! 0

5.8

Situation 2: Stock Split before Bonus Issue:

15 shares

Q10. Answer the following:

T U Y OL TN L I O U H BS SA E C VN R I E S D E E R T C EE EL R L F O FC O TM U U OI M EE DR AP MS E NI ET I ER BU C SE A HS R EO US ST S I I F SO UR NP OE BN I TU A N HE T EG R E UH ST NF %O Ans. Following are the steps involved in issue of Bonus Shares by Success Ltd.:

T O N E R A S T E S S A D E X I F F O N O I T A U L A V E R Y B D E T A E R C S E V R E S E R T A D HE T Z I EL R A T UI SP NA %C

RRS OOA TI TH S C E YU R BS E T DS N E EE I UY FS O SL O TI N SP EEM I T MI EC T YR EE AUH C PE S T U F NS O N I TS O DB EB EE T DUY L U T RDI AO YU F R T S E OA T DS I T R U TO G T O P A NE D T S N SD A F U D O HE F T TN YX N NI AFEE D F M PO V YI MT O AR OC CEPP EPEO S H HE T T T N TRFO O N A I HITT L C T U A EB EP I R IPR S UCE T SNR N I NR O NC %P I

D N E D I V I D F O U E I L N I E D A M T O N S I E U S S I S U N O B E H T T A H T E R U S N %

N ME K OA CT EE HB T FD O L U NO OH I T S A S I C P OE SS T S A T FO O N SF E I L C S I T E R R A A EH HS T S NU I N NOY OBB L I S F A I O T V I O U RES U PS S S AI E L EGI C BNT IR T DT A L IE U OMH HRT E SP R E EY T R L E NA HA O 4PT

9 4 ) 5 1 % . ! ) $ . ) ( #

$ % 3 ! " $ . 5 & . / .

5.9

L A NT ON CE RD OC I F N GI NF I O T E EP -U G DN RI A K OA "T E EH HT T G RN OI F Z I ER T O A H DT EU HA T R XO I F F DD NN S AAR LE LA A T ST S OOA PP OOM RRT PPN A EED H HT N T E EGT N S T I I A L R A E D ND N I IA & S -

SS I EE UG SN S A I SH UC NX O% BK RC OO F T L3 A E S OH PT OO RT PD E EI HI F T T HO D CNE I T ES H I WBL DE TL A R U GOA S NHE I S T R E DA EE H R -E S S D DI RS Y A N NA OO "C P EEM HB O T FOC T O E D H EE T T S A E O DP R E EO H HR W 4P ED R DA AO M" EE R H A T EY S B E HD T E TD A N H TE EM R M UO SC NE ER S SI E R E A U HS S SI PS UU N DO I A B PE YH L T T R E A R PO F YE NB AP EUR S R O A DT I C EA R E PR E I YD HL T LF U FF O ) D R A O " E H T Y B D E V O R P P A L A S O P O R P E H T T E G D N A G N I T E E D R A OS R "O T EC HE T R I DD L O F (O

EFDN BO I E O R T ONA U SOL L I C L T O A ES N G DEDEN T L ERI N U E T OIBH E HEOT E SHTN M G4DIL N NDA G E I ER T NI DA T E E I N ET V CE -EII E D G D LMFNN A I O I R SE ES T E R NITBE DB ENAL 'IRU E S OM R H EO T HE HT SM T G C TENEY I U A R B D I S D$RS D I A EFG E SS S O U E S S R A NA PDSO P R R E A EO OBB B" E T C HO O ET T E T R RE HI E NT D U T OY F S FA I S O T B I U RS D L A DR O U EN EA SV E OYO O R E " HB ER P T E R HP O HNF 4AT I S E G N A H C X % K C O T 3 E H T E T A M I T N I G GI N NT I E T E E EME DH RT A F OO "E EM HO T C RT E U T O F A E YH L T E T G A N I I D D ER MA G ME )R

E R O F E B D E N R E C N O C S E G N A H C X % E KT CA OD T 3 D R EO HC T E R O T E ER CU I S T O O L NC K S Y O AO DB NF EO VE ET S A ED VE I H 'T

TAXMANN®

SE UH NT OF BO S FSE O GG N ENA I UD H SE C S EX I C RO % OR K F PC N O OET H I 3 T T U D L FE O SON E YR R PE EOC HCN O T C T!E E H GS R T DE O NBT AMD GEE NMD I R T A E EW EH R MTO YF LB A E R E DB NE O ES T GS S I EAG HPN T SI E T DR E L AE O HM (S

ST E Y AA DM I T N E NID I OA H S T LM I W!S S T E N I E N A M P O T MTL L OCA #!E FSH E O T I RN G A AN R I PD T S MR I G A EOG 2#E ER EH D HT T E FN HO T R I E W C T N N O NC EO I MT S TC O EE L 3G L A N FTA O N H NEC R X UM% T T O E K L R L C EAO L T F3 IO &

TS NI U OM N EBO T U B A DSE H EOT S HL G T ! N F I T O ES SUI L Y SR S AI O DS F D NUE ENN E R O T BE F I C F EN HO NT I H DC T E I S WVE OG ER N DPA APH MAC X SS% R I O TC T K N C EO ER MI T TD3 O FE L LOH A T DO ER T D HA T E ONT O T"I T A TO HEAL L T HCA I L ETP S R H E PR UC AA SI NHNH %WAS

Q11. An establishment company maintaining power projects in India, raised ` 11,000 crores from Indian Stock market with an issue price of ` 450 (FV of ` 10 per share) on 15th January, 2008. Anticipate a huge returns on the share price, the issue was subscribed 27.5 times and a huge response received to the company’s IPO. The company at the time of listing only owned a land for its six power projects which were to be developed for generation of electricity, and there was no revenue income at the time of listing. On 15th February, 2008 the company listed its shares but due to the

T N E M T O L L A F O E T A D E H T N O G N I D N A T S T U O Y NP AU FD I I SA E P R A Y HL L SU PF UE DD I A A PM YN L E T R E A B PE EV HA 4H

L L A H S S E R A H S S U N O B E H T T C ! S E I N D AN PE D MI OI V #D FF O O U E I L N NI OD I E T C U ES S 3I RE E B PT SO !N No Bonus Shares in lieu of dividend:

FD O N SA E Y UT I DU T YA R R OG T U D T A N T U S F FT O N TE N D EV I MO YR AP PO ET HN T O I FT O U TI B C R ET PN SO E C R S NA I DH EC T U L S U AS F E E E DY O TL O NP MS SE U A N HEO HB TT )

T C E P S E R N I L A P I C NT I I R Y PB RD OE TU S S E S R I E T Y N N I A FF O I TS N E EI T MR I YU AC PE ES HT T B E ND I DR EO T L S T U I AS F O E P DE TD O D NE SX A I HF F TO )

E H T F O G NS I R T O E T EC ME R LI A $ R E F NO ED GR AA NO I " SE R E H DT L F O HO EN R O A I T HA SD EN HE T YM BM DO EC Z E I R R OE HH T T U AN NO EY EN BA SP A M HO TC )

L L D A I HA SP YY L NL AU PF MG N OI CU SS OS NI E L FC O I T R EA S O S PI T TR C UY !P B SED E HE I T N S I ARR PO O H MFT OSU E #V A S ERI E HS T T E I FRS O S RE OL SN T U I F O S E RR NP OS A I H T TS C I EES 3I S U LN RA O E T I B PP P SA !C U TAXMANN®

E R A E U S S ) S U N O " G N I K A M E L I H W H T I W D E I L P M O C E B O T S T N E M E R I R U E QD EN R EU HS 4A N E V I G

' . ) $ . 5 & % 4 ! 2 / 0 2 / # ! 4 2 ! 0

5.10

stock market meltdown, the stock fell to ` 320 per share, i.e. a discount of ` 130 from its issue price of ` 450. Facing huge criticism from its inventors, the company decided to issue bonus shares in the ratio of 3 shares for 5 shares held. A public interest Litigation was filed challenging the issuance of bonus shares without any revenue income. The case was rejected and dismissed. Discuss the merits of the case and also the conditions for issue of bonus shares. [(Dec. 2019) (5 Marks)] Ans.

EE SH E S TB R UDU T ES N T ECO BNN U EO $N L L A DNH NAS AEE LCU N A S T O I S P I S AA S #H U N EHO R CB A I HH 3WA G YN SN E I I AD N APN PME MOM C ME OE O #H CM FT EA O TRS E ADH H T RT A ESO L W E U "A T 2A R SD T OST IH T FI T G O W N N I Y D O L RSI T S N OE I CL E C CUE U !2DQ

E NH OT CG N EI HD T R L LA A W HA T I N I WT C DE ER I L R P O MC OS CA SW A T HR YU NO AC E PH MT Y OTN CAA EHP HTM D T EO I EF C S S A E I T CA H T NSF EEO VB I R G OU O ETV HDA T EF R NI N I UI QT EE R N ORE F S E NM R OG E I D T HI U 4D J

E M O C N I E L B A X A T A T O N S U H 4 E M O C N I N A S A D E R E D I S N O C T O N S E R A H S S U N O " D E T C E F F A Y L E S R E V D A T O N W O L F D N U &

Q2. Discuss applicability and non-applicability of SEBI (Share Based Employee Benefits) Regulations, 2014? Ans.

S E M E H C 3 N O I T P / K C O T 3 E E Y O L P M %

S E M E H C 3 E S A H C R U 0 K C O T 3 E E Y O L P M %

S E M E H C 3 S T H G I 2 N O I T A I C E R P P ! K C O T 3

S E M E H C 3 S T I F E N E " E E Y O L P M % L A R E N E '

S E M E H C 3 T I F E N E " T N E M E R I T E 2

NSW I NE DO N EI T I G F A I L N S C I N EUU O PGS I SES T S2IL A A YU S TT NG N N AE EE PR MMME TEO S O E R CH L I L U A T A QF LE F A O I 2OE T N EEC ER S N R UAA E SCL I F ONP E L R PCIM S E I L O O$ B T C AD GDC NNI N I ALA N LPE I P A A T AC T I R N P EA E PABU S# S NFTR O OONU E I P S L UL I A S N V S I H O) S SE R P) R E" A H% H 43 S

EIS CC T NE N APE I SM L P S E MAR I TU ON CE Q NME I 2 T SL O E E R ELU YAS L OA O L I L T P C N S ME I ER $ E OE F D T N DRA EPL A UOT STI S G P I NA SI # N E I R F A A O T HR E SE U OPS S T S ) YN O L ) I P S " PI AV%S O 3 TR N O E P O NE H I T T LH A L N L T A I U H H G D SI T EE TW I 2 F )

TAXMANN®

G N I W O L L O F O T Y L P P A L L A H S S N O I T A L U G E R E S E H T F O S N O I S I V O R P E H 4

Non-applicability of SEBI (Share Based Employee Benefits) Regulations, 2014:

Applicability of SEBI (Share Based Employee Benefits) Regulations, 2014:

$ % 3 ! " $ . 5 & . / . 9 4 ) 5 1 % . ! ) $ . ) ( #

S E S A E R C N I L A T I P A C E R A H S P U D I A P E H 4

N I E H T H T I W S E S A E R C N I S G NY I N D A L O P HM EO R C A HE SH T S R N I E BS E MR EA H MS EF HO T R FE O B EM UU L N A VN I TE E S KA RE A R -C Ans. Following are the advantages of Bonus Issue:

L A N I M O N R I E H T O T N W O D S E M O C S E R A H S SS Y E NR AA PH S MS OU #N EO HB T F FO O E EU US L S A I VY TB E KE RL U A A -V

5.11

QUESTIONS NOT YET ASKED BUT IMPORTANT FOR EXAMINATION ADVANTAGES OF BONUS ISSUE

Q1. What are the advantages of bonus issue?

APPLICABILITY AND NON-APPLICABILITY OF SEBI (SHARE BASED EMPLOYEE BENEFITS) REGULATIONS, 2014

N O I T A M R O F D N A 0 / 3 % E V O R P P A D N A R E D I S NE E OT CT I OM T GM NO I T # E EN O -I T DA RS A N OE "P AM O D# L O F (O 0 / 3 % F O E M E H C S E H T T F A R D N A L P L L A H S E E T T I M M O C N O I T A S N E P M O #

TG N N I I O T PE PE AM EA L MR EE HN CE S L' A E NH I T F EF HO T E TC P I OT DO AN E OH T T GE NV I T O E R EP MP DAL RDA A V ONO A R "R P DE P L KA O N (A S R B E TD N L AO HH E CR R A E H -S ER O HF T

S R E D L O H E R A H S F O L A V O R P P A R O F G N I T E E L A R E N E ' D L O ( X E KE CG ON T A S H EC HX T E OK T C NO T OS I T E A H CT I L F P PO L AA NV AO R EP KP AA -L A P I C N I R P N I G N I N I A T B O R O F E G N A H C

TE N C AN R A G T P FE O C RC E A T T F E O L FR O E T ET E UL SE S ) H T H T I W G N O L A S E E Y O L P M E E L B I G I L E E H T O T NN O OI I T T P P OO F FO O FE O U S ES CI NE AE T Y P O EL CP CM AE FE O H RT E M T T O E L R FF O Y TN P A I E F I C ET R N NE /M Y A P T N O RS F E P T UA C HI T F I I T WR GE NC ON L O A I T NP OO I T E P H OT

F N AMO HOE T S I S#C E S R E HE L T X TE E O F NMO DIR T OT E I A T R T H E E T PT L E G! H N I ET T H ET S E YI VL OW FP O G M N YE O R L I EA P XHG T EN N I RI T E S TE T S F E V !V F LO L A R HE ST T SE NL OA I T E P U OS ES HI L T L A RH A S ESN YYO I ENT NAP OPO Board Meeting

General Meeting

Application to Stock Exchange

Letter of grant of Option to eligible employees:

Issue of Option Certificates:

Issue of Letter of Vesting:

EN HO T S TE A R A GH NS I T F E O ET -N E DM RT A O OL L "A AR O DF L D O O (I R E P E S I C S R N E O XI ET EP HO T E GH NT I Y R UB DD LE A S VC I R R E E T N X ) E ES L N B O AI T T I P U SO

GE NH OT L H A T TI N EW D ME TT O T L O L L A L FA O O RS E T S T E E R L A FH O S HE CH T A T PT SD I I $E R C R O S E T A C I F I T R E C E R A S E HI SR O ET HS I T O HP T E I W$

K C O T 3 E H T O T N O I T A C I L P P A ND AE T ET KO AL L -A O S S E R A H 3 E H T F O G N I T S I L R O F E G N A H C X E

K C O T 3 E H T M O R F S E R A H S E H T F O G N I T S I , F O T P I E C E 2

Board meeting during exercise period:

Dispatching Letter of Allotment:

Make application to Stock Exchange:

Receipt of Listing:

E G N A H C X E

Receipt of Letter of Exercise from Employee:

F O R E T T E L O T T P I E C E 2

E E Y O L P M E E H T M O R F E S I C R E X E

TAXMANN®

Y B 0 / 3 % G N I U S S I F O E S O P R U P E H T R O F D E W O L L O F E B O T S P E T S E HY T N A EP R A M GO N# I WD OT E L L S O I &,

' . ) $ . 5 & % 4 ! 2 / 0 2 / # ! 4 2 ! 0

5.12

PROCEDURE FOR ISSUING ESOP BY A LISTED COMPANY

Q3. Enumerate the procedure for issuing ESOP by a Listed Company? Ans. Procedure for issuing ESOP by a Listed Company:

Corporate Funding & Listings in Stock Exchanges (Corporate Funding) | CRACKER AUTHOR PUBLISHER DATE OF PUBLICATION EDITION ISBN NO NO. OF PAGES BINDING TYPE

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Description This book is prepared exclusively for the Professional Level of Company Secretary Examination requirement. It covers the entire revised, new syllabus as per ICSI. The Present Publication is the 4th Edition & updated till 31st May 2022 for CS-Professional | New Syllabus | Dec. 2022/June 2023 exams. This book is authored by CS Divya Bajpai, with the following noteworthy features:

· Strictly as per the New Syllabus of ICSI · Coverage of this book includes Fully-Solved Questions of Past Exams; Topic-wise



Solved Paper: December 2020 | New Syllabus

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Solved Paper: June 2021 | New Syllabus

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Solved Paper: December 2021 | New Syllabus

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Solved Paper: June 2022 | New Syllabus

· [Arrangement of Questions] Questions in each chapter are arranged 'sub-topic wise'

· [Important Additional Questions] with Answers are provided · [Marks Distribution] Chapter-wise marks distribution · [Previous Exam Trend Analysis] from June 2019 onwards for New Syllabus

· [ICSI Study Material] Chapter-wise comparison

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