Taxmann's CRACKER | Securities Laws & Capital Markets by Taxmann

Contents E G A P

Chapter-wise Marks Distribution

I-7

Chapter-wise Comparison with Study Material

I-9

PART I SECURITIES LAWS Chapter 1 u SECURITIES CONTRACTS (REGULATION) ACT, 1956

1.3

Chapter 2 u SECURITIES & EXCHANGE BOARD OF INDIA ACT, 1992

2.1

Chapter 3 3.1

u DEPOSITORIES ACT, 1996

Chapter 4 u AN OVERVIEW OF THE SEBI (ISSUE OF CAPITAL & DISCLOSURE

REQUIREMENTS) REGULATIONS, 2018

4.1

Chapter 5 u SEBI (LISTING OBLIGATIONS & DISCLOSURE REQUIREMENTS)

REGULATIONS, 2015

5.1

Chapter 6 u SEBI (SUBSTANTIAL ACQUISITION OF SHARES & TAKEOVERS)

REGULATIONS, 2011

I-5

6.1

S T N E T N O C

I-6

E G A P

Chapter 7 u SEBI (BUY-BACK OF SECURITIES) REGULATIONS, 2018

7.1

Chapter 8 u SEBI (DELISTING OF EQUITY SHARES) REGULATIONS, 2021

8.1

Chapter 9 u SHARE BASED EMPLOYEE BENEFITS

9.1

Chapter 10 10.1

u ISSUE OF SWEAT EQUITY

Chapter 11 u SEBI (PROHIBITION OF INSIDER TRADING) REGULATIONS, 2015

11.1

Chapter 12 12.1

u MUTUAL FUNDS

Chapter 13 u COLLECTIVE INVESTMENT SCHEMES

13.1

Chapter 14 u SEBI (OMBUDSMAN) REGULATIONS, 2003

14.1

PART II CAPITAL MARKET & INTERMEDIARIES Chapter 15 u STRUCTURE OF CAPITAL MARKET

15.3

Chapter 16 u CAPITAL MARKET INSTRUMENTS

16.1

Chapter 17 u IMPORTANT ASPECTS OF PRIMARY MARKET & SECONDARY MARKET

17.1

Chapter 18 u SECURITIES MARKET INTERMEDIARIES

18.1

SOLVED PAPER : DECEMBER 2019 (NEW SYLLABUS)

P.1

SOLVED PAPER : DECEMBER 2020 (NEW SYLLABUS)

P.22

SOLVED PAPER : JUNE 2021 (NEW SYLLABUS)

P.51

SOLVED PAPER : DECEMBER 2021 (NEW SYLLABUS)

P.78

CHAPTER

e m i t t s r fi e h t r o. f g n di et t s s i l i l l ei a bi t on t i ed r e a l l sa e c i t s i i r ue cg en s a rh oc x se e r k a c ho st es ha t n fo I y n a p m o c a y b

t as i nl oo dt s ea t s h i l t ei r , s a e i st e i r r a u hc se s ef s oo he wu s ys ni ac pi l mb oue . cpg aan ha nt h ei c hwx Wte uk oc so e t s me oh ct eh gt ni aw he cu xs ei s kh cc ou t s s 1. Write a short note on: Types of Listing

n k i amc p o a yot c c b s f g d d o n e e t i n ut l u r sa e s s mc i e r e an r go a a l c a s sm a e e h r at d a e hen u sho s s wtd i f e e o s t n e s si r nr l a eee h d h s b l Wo f o o ht ed g r n a e . i s r hi t s u su i l n eq so he i t r tb I h oo t s g l u ya o ne r ar h pa t ms t fi e or o ca r dh p es f t o h. a e n mcg u o as n i t g, a a l y h a s nc i l ma x a ape t

. d e c n a h n e s i y n a p m o c e h t f o e g a m i c i l b u P

e h t l l e s d n a y u b o t y s a e t i g n i k a m d e r u s. ne eg sn i a yh t i c r x ue ck ec s o et hs t e fh o t yn t i i d s i e u i t qi i r l u ec he Ts

m o c e h t d n a s r o t s e v n i e h t o t h t o b e l b a l i a v a e d a m e r a s n o i s s e c n. os ci e xn aa Tp

th n t i aw t r s on po ms i ii c ee s od l l c a s i i c d u or t c te n . ks ea e i mmt i e r gou atc nme aes hh mt c ygu nns if al pb o mag onn e cs i s sr o l op e t s ps i e d mv on r o ci eg eh r n uti dop ete cne oi ok rt o pa t g d nmr r i a tog s f i e n L r i

5.1

TAXMANN®

ds . ete h t g s g i i n l r a enh r oc a x se sr e ek i dc t i l r o uot chs e er d s a e ehn s s r oge c hn n i wt o s c i sx e e eh i n o t at ps n o me i s ot i e cr u nus s eci e hs s t Weh ug sr i s i h ec gu ns at hs ci xl o et ks ca oh t s t i e, hi s t s na ob

e h t : oe t g en l a b h ac l i x a ve ak c eo r t a s se t h i f t e n ni ey bn ga np i wm o oc l l o a f ey hb d Te t s i l e r a s e i t i r u c e s n e h w y n a p m o c

Initial Listing :

Listing for Public Issue :

Listing for Rights Issue :

Listing of Bonus Shares :

Listing for merger or amalgamation :

[Dec. 2016 (4 Marks)] s p u o r g e v i f r e d n u s l l a f s e i t i r u c e s f o g n i t s i L Ans.:

SEBI (LISTING OBLIGATIONS & DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 LISTING OF SECURITIES

2. “Listing of securities with stock exchanges is a matter of great importance for companies and investors.” Comment on this statement and list out the benefits of listing for the companies and investors. [June 2017 (4 Marks)]

Ans.: Benefits to the Company :

o t t n a w y e h t s e i t i r u c e s e h t r o f s e c i r p t s e b e h t n i a t b o o t m e h t s d. rf of f o f l a l e ts I u

s e v. l m e s e h mt ey hb t pd el ee kh r oo t d se r on t w s e o vs ne i i t i er hu t c se ps l e e hh t nf oo i t s a e t g o n ua qh ec ge nc ai hr cp xe h Et kf co ot t s S a e er hb Ta u

ee s h ut ah ct ei bw ,d s e g t na i l d u l o m hr ro i f e hn t e oe t b de rv a ga eh r s nn i o i nt oa i l t u c g ee t r o rd pn ma s ue mu l ir x ae mg n ta e h gc sx r . oEw t e s ki e cv vo n nt i i eSd e hh n Tt e u

,e s h r ot t n s o e vd ne i t yo bu dq l y e t hr i su e c i t e i s r ua cr ee s f e er hp t s oe t c en ua l a v vd la a d r e n t a a l s l n o ca do el dg n di . ak e nag amn s a n e h i vs c i x k g gnE k nac b i tr o s t i oS L f u

,s x a ay t t i h c t l a a p ea wc ,r i x e ah t t e n mi s or ce nd i l fo o h e rr e a t h t a s my b ee hl t b a ny i a sp us oe ex ga at t r n e ah vt do ad on sa l a y t su . i e e gds nes t i e ta s s t i s s L a e e ig r un ca eh s c sx t e i tk s c i l o t ds l u e on ho st s a e l t a n o , eg vn i od ba ar lt a . rl s t oa i p f n a i cdm e t pt r ui e mT d rg i e a n ppi sd ae a i hi tr t rT i wue cd ye i ns w at sn pi o i met ova caN Ahg r n oi v sa e i h t

se e h i t t i n n i ue t r c on pe r pe of f ei gd ae r h t i t b n ro a sd e e s da i v b ot ri po f gr np i t e s . ks i l ae emg l n p na i t ah l cc u Myx ee hd t i ya bs ee r h e t hn wi g ,n s r i l oi t a s v e e vr np i s ee hc t i r op t

[June 2016 (2 Marks)] 4. Explain: Multiple Listing

` 5 Crore

Ans.:

y t i t n e. d e t s i l A

d e t s i l e h t o t e l b a c i l p p a s n o i s i v o r p y r o t a l u g e r e h t ht . t i ir wi p ys t i d mn ra or f e n t ot e cl gn ni i r y ui t st nn Ee

sdo e t gne nam asi n ho t ci m xt ao el r kuf cgd ee or t s fi ,i s de c le eu z p i rs n ghs ota cir ewe r en ,cn I na Ba m Ei l Sp n i oms t oe i gct nor i i t t o r th oc t peu epa r s e des nre h at h t i hw f t o i wss e e i nr v o i ot t i i c t s a e or np i i d e d r r. ode e d hm o nt i Cao t

e h t s a

r o f e l b i s n o p s e r e b l l a h s y t i t n e d e t s i l e h t f o r e c i f f O e c n a i l p m o C e h T

Ans.: Compliance Officer and his Obligations [Regulation 6]: Company Secretary Compliance Officer

d e i f i l a u q a t n i o p p a l l a h s

[June 2013 (3 Marks)] 3. Explain briefly: Multiple listing

Benefit of multiple listing :

TAXMANN®

. s g n i d l o h r i e h t o t y t i d i u q i l s d r o f f a t I u

s t n e m t s e v n i d n a s n a o l s a h c u s t r o p p u s r e t t e b d n a m m. os cI sF e d i n n aa ps mk on ca dB em t s o i r L f u

S W A L S E I T I R U C E S : I T R A P

5.2

Benefits to the investors:

Ans.: Please refer to answer of Question No. 3.

COMPLIANCES UNDER THE SEBI (LODR) REGULATIONS, 2015

5. Discuss the duties of a ‘Compliance Officer’ in a listed company. [Dec. 2006 (4 Marks)]

5 1 0 2 , S N O I T A L U G E R ) R D O L ( I B E S : 5 . H C

. t,. s dr s l n u on eo t st i o a t e i s a t n r e a g dml v i l ru s n u e o g i of e dy wnr b tie ss a e a s t h e n ht n t h i o ft a i do s l esr i p e v s we i m d d on o l len lc u o a v g f s i y s n t nsi e i ent r r een e dt bhe e s eed r i g vre ee apt hms cr l nf soi c e e ao v r e d h e un s t i o r da y g p ey b f r ct u oi rcd op e i s l pt e s n fie te h c s t r eh t dr r tr o d r ouo af p a c, y e lt s i r es i t he d an t nn me t e t a a c d he g s e t t r n t n gr i s r i noe o l i cm te r i uee n h t ot sha t nn y t Mb Ei s u

ek hc t o t ns i d ee l z b i an cg i l o p c pe e ar h ent bof tdo o e s ntn s i o ll l i s a ei hrv sao r nhp c oi i he t a h wt l u gsy edb n r ud sf e i ln h a r t ue ft v. o uo smg t e n yb eb m l l d eea r h u i s s u s t qi u esb t r i ,n e r ug e vfn eoa h wec s oa x Hc e

s a e r a 5 1 0 2 , s n o i t a l u g e R ) R D O L ( I B E S e h t f o s n o i t a l u g e r e h t f o e m os : Sw o l l o f

,t n e s e b l l a h s s e u dq ne eh dc i v r i o d s st a n ea l r b ar ya aw p’ tr a n p uot . a t ms eo al p eb had t ye ea e r pp e ‘ s he y hb Wt exceeds ` 1,500

TAXMANN®

Payment of dividend, interest & redemption [Regulation 12]

ey da om ms ce i u n q oe rh t c c er l o e s et s n ua or t r ea l w b i ’ s r s a op pt ta o ne l sb i t a i y ea r e p h‘ , t wn . ,e d r e e vmu eys a s wp i of e Ho b

d n a e l b a ce . i l p m pi at o et he t m li l t a hm t o i r wf s yd l p r a md on ca t lS l a hg si n t yn t i u t n o ec dc eA t d s e i l fi i et ho Tn

Accounting Standards [Regulation 48]

. rdhs e ce peu s m a ni sc oa de dlnt ncaa en r i duwp t i a i v l o e i r y f d r p bp eo d hfe a t t n r eor i s na d ol lb l e c as l l s he u i s d mn yo dt n ic nt a an e e ee bb r l d l a m a l e i c t h a es l s i c dl , leed l e h t a h hTtc s.ee yyrf f l o t n i e f t oe f n i sb, ei e sr ds du a eb nt t s e i i e e l df r i ea r v hh i o Ts d f

Dividends [Regulation 43]

. ce7.ne i l 5e u l u 9mos b uR1idi s pd,tec t o s s ne t i i l l ma l es b u)um u e p m2R i ( i t i i9)tt a 1 n n mn i g oo ei en ml t i r u ok a f t eRl a I u hn ym t l igBp e E t hdR Spu t e a i ( o fi e wi th sh o cc t t tn i ye l pay w l p l r st ba ms m n h d t r on so oe ce C fi f n i t lmsc oa l i a e l e ei s p hr tpi vh i su s i r ot sr yqu w t ecapo i t r er r s n e i S g g en h n t e n, i s dd r har lt eo o met t s hf va i l eoeev o er hwn A t a o hh 9nH n Ts 1i i

Minimum Public Shareholding [Regulation 38]

,r . nd e e l a e b fi n si an c e ca i ge l p m ns p pd ar h ae e c s fi xn a i e n c ,e a s e p km c gs r oe e t a h hh st ct en n hi ri o, tm s se ou e t g en . f tde n ha ia m ch mr i uc bot sx umo le se t l a k e l l M yc a m o at hnt i ps s o i l m d l t y a a e t o i hi z t r mf sn n rI yg eo t i o dfB t c n enE ee tIS l r s a e i d uh ee ln h t t e t s hny i o T Ab L t

Annual Information Memorandum [Regulation 35]

to fl e n p eti c mn n yei r am p py t fa n o pe e m e dh y ot a p mre or cf r i o n oIn B rR o t i c t eep l e hm e etd s ye ub r , l t l d s a e e hv r so e t rn yp t i pi. t , n ass e dt n n ye dt u d ei l o i i t c s v m i i ad L a f

Fees and other charges [Regulation 14]

s /l ayw t n t n i a a ep l n mai s e ectt i gfoi nonr ansu o r ec i r t oe a c ds fu lf o edao e s n r m/ n . uo s en bi e ho i g rsn i ci T v s t a o c yu rr h op nr c at t x ee r ts a u h t hnot k o t c cCi ee o r ymt ur is s/nle nrarh eeoot g t e lr l df d e a i o er hmt rt s s/ ne yn e vn t s i oe oe t i , n m etree a p t dmeai r l ea bo u t iq s g ov i l l t e yr . eac ar hmt wo Tae

Scheme of Arrangement [Regulation 11]

SEBI (Mutual

Funds) Regulations, 1996

5.3

6. State any four regulations of the SEBI (LODR) Regulations, 2015. [Dec. 2008 (5 Marks)] Ans.:

s n o i s i v o r p e h t e r a g n i w o l l o f , 5 1 0 2 , s n: o i t a l u g e R ) R D O L ( I B E S e h t r e o pt sg An i t a l e r

: r e p a p s w e n e h t n i n o i t a m r o f n i g n i w o l l o f e h t h s i l b u p l l a h s y t i t n e d e t s i l e h T ) 1 ( publication of financial results Ans.:

f i , n o i t a v r e s e r r o n o i n i p o d e fi i d o m e hr . t o hi t t i d wu -a g ne h ot l a y sb t l d u e ss e s r e lr a p i x c ne , ay nn i F a ) ( y dixddt l anni no t t as eaan enr;ye e t noot i d f t o oce e l nnt h a sbtei s dl i t odl nb fi oee au o t rfth s p s i t P a l l) hl f s f a t o a o ( h o s bs,,et s r t i l ye i dt u s vsb a i s et ob t e nn er t i e r e w mdu n e e o n bt eTl h o us )at l si a l(d d s n seh a a a n hi t t ht ht a ,wscs ys u a t t g se l i nn, t u h n soos t l ee ,ee a r c x r dlsa ae l a t ei tp l t h cu s rew i s n e l e t h, ar f t en e a l h fi og. a t t t n i e f d c fie a l i o e n b h c t r ,a aP a ncl r n x d i e ee fi ) a i vl r v e eo d f ka wse(e ce d n t oo or a nrt Hc daas a 3

. t n e m e s i t r e v d a y b s r e d l o h e r a h s o t n e v i g s e c i t o N ) (

s kl i na i l t oe t d nr oe i h t t a r cu i l f b e ur pe rh e pw ae , pg sn wa eh nc ex he t k nc i o et cs nd en r e a f e y t r i at en ve i d g e lt l s a i hl sf yo t e. i t t e i n l s eb b a del i ewa t s v ea i l ehe t hf r To a ) 2 (

r.ne e e r oe pgi ans w paus l shc t wcn l u exos nece ekfr c o ho l s a t t r i ns uc i n oa neh h ot n 8 fi i t o 4 a t ne mei h ht rmt oa ih f c swi n i dh ee dh w h et fif s t i i a l o c b s enu r po pt o si s e es c be hi li r t m l h ad b h su f i s l o s s b t uel d r phua ltso e l hr a b t l hi a f sw i o c yyn t g lan i t s n uni t eo fie . ,e der d ene me t a v v s t e e o i l l h r euwt p m o hi p fa Ho Ts ) 3 (

f,een n no l o ohbo t e i i a s l , g t c e o a eri i t nhrel i ewevpr g hepu aetwac uhfoee gtoHbs y e.td nl o g al d e a l a e n fi i ht utlc i a l sng i uae an l t g p at ihs s nsl s b ”r Eu ess i hi re es n tyeh r t p n oo i i at t te d dnpe s l a eest o eh h ws l sdel i t e i wl a t Ne bs eu nh i v na l i i dtpes h enrt ht e hi nh pfe s ga c in o i l b ip mh e t s ua cew s w pl i fi t s euef r e bcnoe i r t vt lc i ydd i l l a i e n A hra r “e sede . npetfde s o i e oan g t i ss tpogt s n e ia a l nrn mwi e h rede fc on hmox n t e y e f aer E l s n i aria i E eaieucM d d q h hl enS nw Ta r I i ) 4 (

g n i w o l l o f s e k a m 5 1 0 2 , s n o i t a l u g e R ) R D . Oy Lc ( i l Io BP Er Se ew hl o t fB o e l t s i h W n o s n o i s i v o r p

[June 2015 (4 Marks)]

8. Write a short note on: Whistle Blower Policy

TAXMANN®

S W A L S E I T I R U C E S : I T R A P

5.4

7. You are Company Secretary of All Season Travels Ltd., which being listed on the stock exchange after an IPO is made by the company. Your Board of directors desires to understand about the compliance requirements relating to publication of financial results. Write a Board note on ‘Regulation 33 of the SEBI (LODR) Regulations, 2015’. [Dec. 2011 (7 Marks)]

Advertisements in Newspapers [Regulation 47]: a

Ans.: Regulation 22

lr t i g o i v p e ar eo t t a l s u e e my ro ol f p lm l a he sd n ya t i t s n r o et c de er t i s d i l r eo hf Ty c i l o p r e w o l b e l t s i . h s wn r re oc n mo sc i e n n ai hu cn ee mg

Vigil Mechanism [Regulation 22] :

am zi s i n ma ih t c c i e v tm s ne i h a t gl ai sa dv ra a o uh g ew f n a o s s er t e a p ur qe eh dt ao ry on f a er do i v s oe re py lo l l a hp sm me r so i n s ar ho cc t ee mr i ld i g f i o v en hi o Tt

5 1 0 2 , S N O I T A L U G E R ) R D O L ( I B E S : 5 . H C

5.5

e e t t i m m o c t i d u a e h t f o n o s r e p r i a h c e h t o. t s se s s e a cc cl aa tn c o i et r p i d e c rx oe f er do i e v t oi a rr pp oo sr l p a p da nn ai ‘Whistle Blower Policy’/‘vigil mechanism’ explained: The concept of ‘Whistle Blower Policy’/‘vigil mechanism’ is borrowed from western thinking. The concept is that there are many employees at various levels in the organization who feel that something is going wrong e.g. corruption, violation of law, wastages, unethical practices etc. The policy/mechanism to report such corruption, violation of law, wastages, and unethical practices is known as vigil mechanism. In many cases when lower level employee reports such incidence and they are victimized - may be demoted or removed from his job. In fear of losing job he will not report such incidence hence regulation provides that vigil mechanism shall provide adequate safeguards against victimization of directors or employees or any other person who avail the mechanism.

9. State any six regulations of the SEBI (LODR) Regulations, 2015. [June 2012 (5 Marks)] Ans.: Please refer to answer of Question No. 6.

TAXMANN®

gd nt e i s wi ol l e l h o t f ,f 5 1o s 0r 2o , t sc ne or i i t d a l f u go ed r Ra )o Rb Df Oo Ln ( o Ii Bi t Es So ep hm t o fc o o )t 1 ( g 7 n 1i t na l oe i t r a l s u n go ei s Rv i ro e r pp s Aey : h t t i t en r a e

10. Nikhil Ltd., a listed company is confused about the composition of Board of directors, seeks your advice regarding the composition of Board of directors as per SEBI (LODR) Regulations, 2015. As a Company Secretary of Nikhil Ltd., offer your suggestions by highlighting provisions of applicable regulation. [Dec. 2015 (6 Marks)] Ans.:

t to fn dn. a na e e d ah vdn t are a s s hop e l B l l e a t ed h o hi n st n sd 1 d e fn nt i o t s a iaa t 9 n e 1l e0 t d2 a e, t e 1v s i la l i 0r h 0pl l 5Aa pyh obs t re s eo ht i t t c i t fe n o r . i e0 sd 2 r ond0 e t 2 at c s , emi 1 r oli i l 0 d w0 r ft0 p o n1A depy rd o b a ontr o Beet p h eet c d e hn fr t o i i , r sd er e n vnoa t eoc t m ws e oa o r i ed Hl w

f o e s i r p m o tc s l a l ea l h nt s aa eh vt ai hw l l a h s s r o t c e r i d f o d r a o B

non-executive directors 50% of the board of directors

optimum combination executive 1 woman director non-executive directors

es hu t o i nv or e dp e ne t i a mi f rd o e e e t m e s i dm r p ei am be so lh i t l c a sl r hf l oa so t h sd c n e es i e r t i i e t d n h f et o 0t d 0a r 0s a 1a o b , dn e n o h i at t a 0z f o 0l i 5a pt i op t a ec he t Tk . r ra a e t e s my h . a l te a fi l o et c r a sn e i a , s nh a b fiW

Explanation:

chairperson 1/3rd of the board of directors

does not have a regular non-executive chairper50% of the board of directors independent

fn o ra e m t o g n mi oy rp pu c ac so i nn oo ss r r e e pp rr i a o hr ce et vo i m t u o cr ep xy en n a oo nt rd a e l t u a ge l er r s ei hr t o ey r t e i ht n we ,d r e e vs t ei wl e oh Ht

son directors

non-executive direcindependent

f o e s i r p m o c l l a h s

y t i t n e d e t s i l t s ea . he t l ea t r e h, W

tor directors

: g n i n a e m g n i w o l l o f e h t e v a h l l a h s ’ r e t o m o r p y n a o t d e t a l e R ‘ o et dd ne i em he t e nd ae hb t l l ra e h hs t s o e se r n oi t m c eo r n i d s t si t r i ,o y s t e i t e n y eo l dp em t s e i l s t ai , ss i rrt o . e t i t c o et o r mi d ode rtt pn a ee l ed hn r t ee fp b I

. y c i l o p r e w o l B e l t s i h W / m s i n a h c e m l i g i V

. s n o i t c a s n a r t y t r a p d e t a l e r h t i w g n i l a e d n o y c i l o P

. ’ s e i r a i d i s b u s l a i r e t a m ‘ g n i n i m r e t e d r o f y c i l o P

y t i s r e v i d n o y c i l o p a e s i v e d l l a h s e e t t i m m o c n o i t a r e n . us r mo et r c de nr i ad nf oo i t d a r na i o mb of No

. y c i l o p k s i R

. s t n e m u c o d f o n o i t a v r e s e r p r o f y c i l o P

y t r a p d e t a l e . r s fn o o i yt t c i l a a s i n r a e r t t a y mt r na op yd ce i t la o l pe ar h et t i a w l u g mn i rl oa f e ld l a hn so d yn t i a t n s en o di ec t t s a i l s n ea hr Tt

r o s e e y o l p m e s t i , s r . t oi t c o et r d ie d t sa t l i e ,r y t e i b t n o et dd ee t s m i l e n e ud ne ab l sl i a rh e s t o s e me on ri pm eo hn t s fi t I

e . e h t m t a a s h. e t s t h dn t ne r am o re f a ts ea n yt o s s ea la hi e t cr gn d na n i na r u fis de e hi c st e t i c oa c t i l r s o p e pt d go n nn a i es t he n i ut c on i ci l cd o ae p s g nl on i i t sc n s e i u gd n o ae c hb c cl da n tu i n ao e s ch g s fie i n n a mh ga i S sC

y ir p a at cn tu e l ko rv a a mn no os e di ec i s l a bos . p sne e t o i i t s i i t b t u n e ebw i r dt r ei i se t s dh i l t 0dn n 0e o 5d d i pv n oi a t d s nrt ai r heo h t p rte e e r s ho l t a l o c u s si n e dn i t i ya t r a n i eme h d t enn o t i s i t i a l s i z el s i ha a Tt b

es hu t o i nv t s oe a dr e. p l ee t nt a i a , mi d re e t m e dm ei be h lt l a hf so sd e n f i g t e o n i t i e e n d s h et nr i a 0t p t 0a s m 0s t u 2a o oc d l sl n no a a ai hh 0t ys 0a z n i 0l a 1a p t pi m op o a t c ec d ht e e Tk . t r s ra i a el e my h lt fi a o e cr sn e i a s nh a b fiW -

half

of the board of directors Explanation: -

SR equity shares independent directors

,e 1 s i lr i r pp Am o mc l ol ra f h .s f . ) e 0 . w2 (0 s2 e , i 1 t i l t i r n p eA d. e. f t e s . i l w 0( 0s 0e i 1t i pt on t e ed he t t. s fi o l s0 r 0 o0 t 2 c ep r o i n t d a feh h o t t dd s s rn e a l oat b)o e9n 1 h0 f T2 o ) R D O L ( I B E S e h t r e d n u d e m a r f e b o t d e r i u q e r e r a s e i c i l o : p5 1 g0 n2 i , ws on l o l i o t a Fl u g e R 11. What are the policies required to be framed under SEBI (LODR) Regulations, 2015? [June 2017 (4 Marks)] Ans.:

TAXMANN®

d we ot l s e i l be lh e vt f eo l es nr o ot tc a e r ri od rf oo t c d er r a . i o s d r b fe o t o c he dt rf r i a ood f t bl n a fh e o d ltn s e e vap e el e l t d ea n h, i t sf tro o a t t sc s ne i s or n i i t d o i s c ofl o l pd a tr h n a s eo y mbi t eet n gh at e u

S W A L S E I T I R U C E S : I T R A P

5.6

Explanation:

6 directors

12. A listed entity shall not be allowed to change its name more than once. [Dec. 2017 (5 Marks)]

t c e j b u s e m a n s t i e g n a h c o t d e w o l l : a s en bi o li t l a d hn so yc t i g t n n ei w do el t l s o i l f ee hh Tt h t i w e c n a i l p m o c o t

Ans.: Change in name of the listed entity [Regulation 45 of the SEBI (LODR) Regulations, 2015]:

5 1 0 2 , S N O I T A L U G E R ) R D O L ( I B E S : 5 . H C

. e g n a h c e m a n t s a l e h t m o r f d e s p a l e s a h r a e y e n o t s a e l t a f o d o i r e p e m i t A ) ( s a h . de om i r a e pn w re a en ye eh nt oy b gd ne i d t s ee cg eg r pu s ey ht t i v nt i i ec ua nw ee vn ee r h lt a t y o b t r eo hf t d fe o t n %u 0o 5c tc s a a en l e te Ab ) (

esnfe htiom i t eea dm fe gn o ganf %nnao h 0asc e 5ht i g c en ts eh s a a agth ehn c l m a yhoo tt a c r i t t lfe sn l i s l teahb h t c dsn a ee c j i ttol i o s ,mp ri e p. pl /ym6a3 ynafs1 t ano 0 i a 2 v fs i s d i t , t t ,ionc c r i o nr ae A i i e s vd i we s pv e ew e i on ar t no c a eHenpp i fl h. f eho t m t y r i o nt eC itwc i t dnosne eeneah i e i t t l t dr s i p v e ea r i t vs me t hc d nl ic i aon tei cu s n hht nd i utwi e ofshsb moeter i i i i t t w asi i c t v v s i eei e e t t s hs nc c r i Ta al ap ) ( n o i t a c i l p p a n a e l fi l l a h s y t i t n e d e t s i l e h t , s n. oC i t i O d nR oh ct ei vw oy t bi l ai fb o a l ni oa i v t a c ae f s m i t a a n s r no Of

nerd i hoe f r ntl e na wi t r va oy , oh dt rc ip dt i n pg a ea l n i ds ’c ee i rt mt sec ai d a nl l r e o fh . hps o te n e,rao grami t neh i adsod r hngf n cun o e reitc r k a oe ec d f he i e f sts r i i ne t e r u odc e q i aic t t e i m o d ar nsne e oe c e cl n hda u u t er l i l c hdon p t ntim t ha lo n t l i 3ea c w1 hg m e0esn 2 , c, t i e t a nt a mt t acs i a s A l ynt p s r n e mi ona i t on t c aen a n g u npan o omla p c pox hc UCe ca

. es 0drr hu 0eoo t o 0thc t i 1s ite nv l g or e p0 r ni o e d 0 dp t 0rt e t e e nt n h2se i l a t p a mi d fo t rd n o t o e e e t t ses m p e r e ohtd dm i t t fn c f ei o i o e be d r 1 h i lt dr l t d 3 n a s f a/a hf o 1 e so l 9e d1 sd t n b r e a 0l i a e t 2 g l o i a e t n ,h b1 i n h d et elsu i0l hr 0t t 2 c 0a fp0n 0s A o 2 i 1a , , g r , m1 dn ] e n l o i no i h t rr ai g e t f p i e 0a tAh m c 0z i s l emi 5a yf r o t f r pi e e rv e op f v t a e hc th et ec riei c ht w [ f o Te. f h f k r e s w ra e h a i e mt , t s u i i my r r t wo lo n fa t esc i u o e c e i d sn qe ti r i e i a s t t d n hi a n s b fiT l 3 e

d r a o b e r i t n e e h t y b e n o d e b l l a h s s r o t c e r ]i d e td n u ec l dn ni el pl ea dh ns i h fc o i nh ow i t s a r o ut l c a e vr ei ed hf To

esn nra o ot m tc o s ew a r i ed l t tfn a oe e d vdn r aa e ho p e lB l d a n hei sh1 t sd e t i s na t i ae t n 9l e1t d0a 2 e, e t v 1 s i a l l i h 0r 0pl l 5Aa h pys ob t s re eo i ht t i t t fcn e . o 0 r e2 i sd d0 r one2 t at1 , s c i eml l r i o0r i d 0p w0 ft, A o n1 de y rdpb o a r n t o oe t e Bp c h e eet d r hn fd i Ti o

d n a ; s r o t c e r i d e h t f o e c n a m r o f r e p ) (

nn ai o l i , u t ra ge ev u r l ea ewv s oe e hHo t .t t nn t i c e dej emb fie u i gs c eae pnr saa smo a eh ah i tw r e s t mr i r o ot c rc efe cer nci end dee ndh ent pe, epn . deot e i ndt a i n a p eiu i l hi c ra i t t ev fh r o tea td ep n vt eno o mabn lsal l fi nea l oh h u i ft ts ) (

a b

[w.e.f. 1.4.2019]

TAXMANN®

r e p s a ’ s r o t c e r i d t n e d n e p e d n: i w ‘ o ol t e gb nn i t e a v l i e g r e sr t a n e5 m1 0 d2 n, es n mo at i ta n l au t g r oe pR m) iR rD uO oL F( I B E S u

5.7 a b

13. For ensuring independence in the spirit of Independent Directors and their active participation in functioning of the company, SEBI has accepted many recommendations of Committee setup under the Chairmanship of Shri Uday Kotak and made amendments in the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Explain any four amended provisions related to Independent Directors. [Dec. 2018 (4 Marks)] Ans.:

Explanation:

w.e.f. 1.4.2019

[Inserted by the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018

14. MCS Ltd. is a listed company with Bombay Stock Exchange Ltd. The Company enters into related party transactions frequently with MAP Ltd. in which one of director of MCS Ltd. holds 3% paid up capital of MAP Ltd. MCS Ltd. feels that getting the approval of Audit Committee for each transaction is time-consuming and delaying the operational plan. You, being a Company Secretary of MCS Ltd., advise the management with reference to SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 for approval of the related party transactions from the Audit Committee for next one year. Will your answer be different if MAP Ltd. is wholly owned subsidiary of MCS Ltd.? [Dec. 2018 (4 Marks)] TAXMANN®

n i

c e r i d t n e d n e p e d n i e r a o h w. s ,n e ei o t t t i c ma s mn a or ct ty i d t r ua ap ed he t t fa o l e sr r e e bv o mr ep mp a el s l oa hh t s ys , l r n o Ot

sg nn oi i w t c o al l s o nf ae r t h yt t o r t a pt c de ej t b a u l e s r y rt o i f t n e d e t s i l e h t y b o t tn n i ad r g e r ye at mn ee ee t b t i mos : t mdn o oei csi t tod i p d n o ur o Ap c

fo f io n t msc one o p i ec t s ha e t r gsn nni a i e r tt l n b aya t r c r g i l rap opp d f ea. at e i a r b l e e l t l r i a r nh c s eol hya c t v i nl o r wop p oep dh a yth ahc l t e i ur lw l sa a hedh sn nc eiai el h y n t t i w t i i l t s man n v eo mod i ore t c cpt p a ss ta i i ln d s ea uu ht r Abt ) (

n a h t e r o m n i

e as ho ch i h w we s no oh st e y i l t i n t o n ee db l el t ae . s hg i l s fr n o a o rt h c e c e br x e mi d k ut c nn o eet hds t na ren op o f ted d n ne ui t s o/i r co l e et r hca Tes r i e d r aa h ss i ny oi t su r e q pe

t i d u a e h t f o l a v o r p p a r o i r p e r i u q e r l l a h s s n o i t c a s n a r t y t r a p. e de et t t a i l m e r m lo l A c

he ch ut sf o rt os f e r de et en ni e eh ht t n gi ns i i d l ra a v go er r p fp l a e s h t i c u ys f s t i t a a h s t ld l a n ha sl a ev eo t t r i p. mp y t mai ost cun be ti d i n d e t ums i Aol ) (

: y f i c e p s l l a h s l a v o r p p a s u b i n m O ) (

fe o b dl l oa i h r s e pt a ,h n ot i s t c n ao s i t nc aa r s t n fa o r t ef r uo t t a n nu ,o y t m r a a p dm eu t m a i l x e a r em. h,o t nt n oi fi o td sce a e r s mn e t an ar Nt e

a l u m r o f e h t d n a e c i r p d e t c a r t n . oy cn ta n ei f r r e uc ci /r ep ce i h r pt n ei s a n bo i et vi a i t r a a cv i d r o nf I

whole time director/managing independent director

n a s a e v r e as l sl a a. n h a gs ny s i a t v i r t e e n v s e r e sd s i e t t oi o s hl n l. wyn l na a nah h s ont si e n r r o e o s p m r e y t p n o A A n ) 2 ( Explanation:

omnibus approval

director 7 listed entities independent director listed entities

Ans.:

sy nn – oa i e t gm . i d nt i ni odf u o cl t gc n ni ni i o ws ,p op l y in lh o sa f r eo t a ht n t c a h hem t r e t i i he wdt r fy o yo l bm p r dn me l i obe cmh lu e l a b hn s n sma c u e a i t tma i e i t h b x n t eas t o dmp n e il h e t l sa s hr i t l h os fot o c n ste o t r r c i s oe d r t pe e c st p ee r i ra A n d r) he et 1 t( hi l Twa u

S W A L S E I T I R U C E S : I T R A P

5.8

3 listed entities director

repetitive in nature

5 1 0 2 , S N O I T A L U G E R ) R D O L ( I B E S : 5 . H C

. . tsn t i n fi o adni o t mcui tc a c ene a ,a ei ol s sn dt bna c ar ar ya l as t i tr mnahe avc p erau ts eto t ynr t it o r ma ef l mpra a od v s ce o l ir ta ta p i ltp d ueea ards r d u i eo a b hfs i t dr en se a eom snfo n ate e n da oh u i l t tnr a i d eagv nrnyr i oeeae e chs mh t rwe e ,reo e r o he t t f t t t o v c eie hebmj cw mb t uoo ou SHnc s y ei t dt en he t d ,e s t i s s i a l be yt h l r e y. t n b r e a ov ut i g n qi s ad l a nev ro oe r tt s np a p eea l s tns a ou i b ,t i wc n eam i s v no ea r e r lt h l t a yf ht sro eah epc t da t i ee t ma o lt me t orn c a f tou i s sr d l i ua u At p ) (

1 g n. r i a d ee ey c1 xf eo ty o r np i dx oe i r e e h pt r ae rt oa f f dl s i l a a v vo r ep bp la l a h hs se sr l f a ve r oi ru pq pe ar sl l ua bh i s n md n oa hr ca ue Sy ) (

s r e d l o h e r a h s f o l a v o r p p a d n a e e t t : i s me s ma oc cg tn i i d w uo al l fo o lf a e vh ot rn pi pe al ob t a gi c nl i p t p a l a e r e sb nt oo i n s i l v l oa rh Ps . s e i n a p m o c t n e m n r e v o g o w t n e e w t e b o t n i d e r e t n e s n o i t c a s n a r T ) (

r ygo l nf l i o d g hl n woi ht she t e i c dum l nsa ahr te yi n nw a e pdg e eh mt oa t ci dt a gls nor s i ne d ol d l o co heh e arr a nsa h et s en wue toh e ct bc e r oao t ef n s e i ob dhd ewe r c e ya t r l n a p ed i d si n nsa b ou i . ya l t s c n adav s o epr nn mp aw r op Toc a ) ( Considering above provisions, answer to given problem is as follows:

fnege o ernb leai tn a se vwt a ec otn reumy pbo lr t poc a atc r a n e p dian ndee d aehg e r t t e et e a fh en l i e t t t y e i tr r a msa h n isi t oi mi d r ot sew ccbdn a ulo ts o i s i n h d t a e dr c ur a ea at s frn n h w o o sa f oe r le t a h y vll e t obl s . a o e l rc a a r h pi v pl woco f p s ap e i r sb h p oat t eidtp gbdena i n nc, r t a i o ae o t l i nyp a cr l l n np l e adet a r n p h Hu ss ma.o ns h or odlt i eceai s i d tvw o a g v l rd dp ni oo i rhd l e pr o pe l a e eros t n a r h hh n oo Ts acf e ) (

TAXMANN®

de h et t a f l o e r s rn oo f i t li a vd on ro pc pd ae t sa ut bs i e n v mo ob ta n f ao r t g nn ae m cl . fi . d 5 l1 t Lu0 f So2 , Ct s tn Mc o fei j o t b a eu l es u t g t ne i oR mi t) mc aR os cn D ta O i d rL ut ( ayI tB er E ha TpS ) (

Promoter is declared as wilful defaulter as per RBI Guidelines. Promoter is holding 12% of total voting rights in the listed entity. Promoter is acting as CEO of the listed entity. The promoter company has outstanding listing fees only for one year. [June 2019 (4 Marks)]

(a) (b) (c) (d)

5.9

not exceeding ` 1 Crore

a b

Omnibus approval explained:

Black’s Law Dictionary defines ‘omnibus’ as ‘relating to or dealing with numerous objects or items at once; including many things or having various purposes’. In the context of the related party transaction, ‘omnibus’ refers to the collective approval of the transaction instead of the piecemeal/individual approval.

15. A listed company can apply to stock exchange for re-classification of the Promoter’s holdings as public shareholders under SEBI regulations. Whether following promoters can apply for re-classification with reference to SEBI regulations?

; y t i t n e d e t s i l e h t n i s t h g i r g n i t o v l a t o t e h t f o % 0 1 n a h t e r o m d l o h , r e h t e g o t ) (

; y l t c e r i d n i r o y l t c e r i d y t i t n e d e t s i l e h t f o s r i a f f a e h t r e v o l o r t n o c e s i c r e x e ) ( rs ; ot ln a e mm re oe f r hg ga ur oe rd ho l t h ye t i r t a n h es dy en t s a i l h eg hu t o or t h tt c eg pi n sd e r u l hc t n i i ws t sn t h e gm i r e lg a n i c a er pr sa yl na am r eo vf an hi ) ( e e n i m o n a g n i v a h t o n g n i d u l c n i ( s r o t c e r i d f o ; dy ri t a t on be ed he t t s ni ol e dh et t f n eo s ) e r r o pc t ee r r ei bd ) ( ; y t i t n e d e t s i l e h t n i P M K a s a t c a ) (

; s e n i l e d i u G I B R e h t r e p s a ’ r e t l u a f e d l u f l i w ‘ a e b ) ( . r e d n e f f o c i m o n o c e e v i t i g u f a e b ) (

; s e g n a h c x e k c o t s e h t y b d e d n e p s u s s e r a h s s t i n i g n i d a r t e v a h t o n ) (

e h t r o s e g n a h c x e k c o t s e h t , d r a o B e h t o t s e u d g n i d n a t s t u o ys . ne ar i eo vi t as ho p te o nd ) (

s a l c e r r o f y l p p a t o n n a c e e f g n i t s i l g n i d n a t s t u o g n i v a h y n a p m o c . rn e t o i o t ma c o fi ri Ps -

t t a o o n n n a n n a a m c c y e y e t n i k i t l n e g e d n i i d u e e b G t s n I i l B o i e R t h a r t c e n fi p i i s s s s t a a h r l g c e i t r l e u r g a n r f i o t e f o d v y l l l u p a f p t l i o a . w t ty e o s n h a na . . t np dn n f a eo o m oc r i i t t o a %a a Oc l 2 c E e ec 1c C fi fi h i i ds gs t ss ns gf i i a a no d l l oc i c l t hn o c e e o wr hr as rr r r r re e e e ot ot t p f f o o o l y ml y ma ml i op op or rp rp re Pa Pa Pg u

: l l a h s y t i t n e d e t s i l e h et h, t f o

s a g n i d l o h e r a h s c i l b u ps ; mn o ui t ma iu l n i g me r re os f e th n t ef mo e8 r 3 i u n qo ei r t a el hu t g e hr t i r we td n n au i l d p e mr i ou cq ee br ) ( u

SEBI (Listing Obligations & Disclosure

Ans.: Regulation 31A(3)(b) Requirements) Regulations, 2015

SEBI (Listing Obligations & Disclosure Regulation 31A(3)(c) Requirements) Regulations, 2015 i r e p s A

Keeping in view above provisions, answer to given case is as follows:

TAXMANN®

d n a n o i t a ct : i f o in s s l a l l a c h e s r n go nt i i a k c ei ei f s s ss r a e l t c o e mr og rn pi ee k hh e t e fts , o s r e t o m o r p e h t o t d e t a r e l e p r s s A n o s r e p v vi vii

S W A L S E I T I R U C E S : I T R A P

5.10

i ii iii

ii iii

CORPORATE GOVERNANCE REQUIREMENTS UNDER THE SEBI (LODR) REGULATIONS, 2015

yyev blso l e a st hg i e t , n s s -r s ey e s e nc cs i oean r pa e pc mn dnof i a nn c, ar s ar sene e v i l coip s i gr t p e c e u at d s l r a o pr , s h oe ,p r s e e k ra l m o u o rCtt s .y fd s o u n e l ac l mo , mt er n t t ee s n h y ot m s cf e ado g snsa i t . ny s eae at cdr i mn nee t t ac ,u n s ne i m r rr e e i e dm vdhl o osto Gighc y n ee enir h c t a at n a pa hd r sn oml p asa robtt ocsin Caeee d v h l um co i l n v c h r ni ne wi

16. Corporate governance is the application of best management practices. Comment. [June 2009 (4 Marks)]

Ans.:

ds. s e r nr e au d ldl o o reh c t oe n k ora cpt ds ,n y l l t a i a l sf i b o amt e t s t n s e uy r e ost cfn coi ae tt s fs e o sb i st t r i Iu e . ss t r e o ot mt cd ae r e rg a pia d fn so a e t dm a r l s a u i o pb y i t n ea s ehp ctm nfo aoc nse n ro e h i t vt t oca Gnh u ft eg e t a r nu r ts oi prn o rp e oe o Cr t

5 1 0 2 , S N O I T A L U G E R ) R D O L ( I B E S : 5 . H C

I B E S y b d e i f i c e p s n e e b e v a h e c n a n r. e t vn oe gm ee t e a r r og pA rg on ci t fs o i sL t f n o e9 m4 ee r i s u u qa l eC r ,h a i g d u no I r nt h I g n i w o l l o f e h t s e k a m 5 1 0 2 , s n o i t a l u g e R ) R D O L ( . Ie Be t Et Si em hm t o fc o t 8i 1d nu oa i t n a o l u s gn eo i Rs i v o r p

: g mn oi cw tl o i l d o uf ae th n t eo dt nt ec e pj eb du ns i , de nc an e dr ee fif i e l r a f uo qs am er t e u t t i e t s h nt oh t ci lw l a e hc sn ya t i d t r n o ec dc ea t n s i i l e ye r t e t vi Em ) 1 ( ) (

t . in u e qd en e Rp Se gd nn i i f edo n ba t e ls l s tr i a hup som ego n ei c t v t i y al mh n myo t l ot i l cn a h tes i d d e ut ee as t t ii fl o am sfm r o o e c e bs t ma i d ecu mi na ede hnh t at. f sr s e o r o a t c he sr i yd t m u m i n i m e v a h l l a h s e e t t i m m o c t i d u a e h T ) (

rindge r r dd ie or onn nn d i w aa get uic ts d fi p nx a n ou dt . e f i n s cr loe a fi t e fi a ns eo igcli do k n t r a r n ue t i i ci r l et op os i p t , g csea,cb en cecbnni d yt e a o s s l t i as ri e nn a ih t ot l ne e o i fi n a o s b vpo ec p ie f n i a a i c s e e m e t s a i h e n s ec hs h l i eh hn a osei cr er b t t a t rfr p , o h le e nl rg dor oe l n ps aa eep i ae c x eb. r s h h l s e fi r e e sg m w a fi t e f di i l e e o l o v c i a s ei l l s s o eu n b s a e t u i a t a v h t fln t l n qr i nia snh or n e t e c i m a e s ’m A e a p r fiu c t c exrpscn ma t b e ’ a e t f leoml r xa ot n a o a , l c t o e e g a t u fi n t t s t i fh hnnc e i d e e l r n i d l s i s t e it yi a mn er v i ue l h hd i l cm eeut cw ar a p g b n o i e n o e r h c t e. macyiae n naa n s ant eacneec tbe a fi f s h l fi a l ef nc i o r a i d mmrrtb o o i e F l n h ongr n Aa s ‘ osu a a ie,in o s q c g s c bt , nnntii rer v h l n e dn aaiu e ae p d d nu nntshs n r n ao l e i fi fi u r r o a t r a c e o o s n d h h c r r i h h c e e a c g o e t c t c e r no t i ds ec a a c a i l he ns n he r T h e n o w ul b o e r rs i ) (

TAXMANN®

tn a da nm al a ei t c a n r a e t n i l fi yd l l e a t i a c l ne ar nr fio eg bn i lt l n a hu so c ec ea t t i e mv a mh ol l ca th i s d ur. e s ae i t fbr o me sep r x me e bet mn n eoe ms tm e la l g ea A l ) (

m o c t i d u a e h t o t y r a t e r c e s e h t s a t c a l l a h s y r a t e r c e S y n a p m . oe Ce t et hi Tm ) (

r eee s oeb hv r t pott c i y t es er l u l r i c a e a d vne i x e t o e i cdu s nnc y a aae cn t ni xc a fid e o f euh,o hacre e l t u vc a s en n t ree i w r e v s e o h nt e t H i n r o l i p . l fye a e e hont h sdat t nadit oenmu i amo thr e h ,oot r n i c otcw i s i e d i t ht d c ut e snaf e t uyom i rs tfo a e g y t ecu na n i ea t t . my t a e t nt t i e i e s m fie t en mt mehet e ohthid ctftme o f t ms to t ea i oi d vtc di l ua n e t ae e t a i h s t ehn d t e hre uf r To spao ) (

3 directors as members independent -

a b 2/3rd directors

Explanation 2:

i.e.

Explanation 1:

[Dec. 2009 3 Marks)] 17. Explain the term: Corporate Governance

5.11

Ans.: Please refer to answer of Question No. 16.

18. Discuss briefly the composition, role and responsibilities of an audit committee under the listing regulations. [Dec. 2010 (7 Marks)] Ans.:

Audit Committee [Regulation 18]:

t o n d n a r a es . yg ai n t ne i e m o w t n te s e a ew l t te a b te e s ep ml a le l l a l ha sh es e t t i m m o c n ta i d h ut ae er ho Tm ) ( e b rt e s a he t i l e t la l a h ht si gw n, i t e e m e e t t i m m o c t i d u, a r o f m u r . o u q e hr To ) (

, y . ye n t r e i e v a yt i s t oa t s l c e apec ymre neun c aye s r ns ea e t dd a i gmns i oan t s r o e f e c c vni t v i no di i f ia t oa , t le m a s sr i nt r o r o e i e wfs n p s oi x e pkf e t eeon vera aspv , re he e lch l l n e a t r e o hr h se rt f oi ee er lw t s t ar f g i e e mol s d mmes i d ori t u ce s t t o ts u i f too d ui e annc i i a h et n t hi b a Twod ) ( y b d e wI . eI i v e l eu r d ee bh oc t S nf oo i t C a t mr ra oP f n n i i ed he t fi i dc ne ap s es ea t t ie mb l ma l oh cs te i d e t ut ai em hm t o fc o t i ed l o u ra ee hh Tt ) 3 (

” enst. I nderart n e . enhudaaai r s gatsemrsee u admntuoivc t d p u c i et Kr enoet n u h i r a r c hr i oa t r t f os rC at t s s r s nbtfnhgt l pg l e oenIoSn i B e f v n okfgi dEco hi r t n t r t d i a a gc i t S r p v t a i s h o ne n h yhi mt h e i p t u s l b s ha ni In do e i t r B es o s t “ l edsn Eatioca i c p l bah oSmaa i ac b h i r ssTt c , t i y n e y a s a .l t th a s aae i hdn tl n wncue ea a i s longcCvr uf r i e o p e a e b e q e r r t l l sul phsiI v t e b b h d . a dc i gs nerodn he e i x o h t a s n h tkE d r i t e a t e o s c c dc nno e k e o t e p u l I na rl t ent a .er e sauy oad i csl mirrt ren o , i t n e i l psi lc aispra e u e n r a b nrn ni r e t osl o a i r a i e o t o l C p t e b l n s e e t n c ar vt a e du fi s ev i ce ot il i o v nv uoGmbnda i c o e g i a e e l c m f s s t eGi fa t o e n a o a c fo o e v t r nt r drCen oo aa pnnoepe s pm o p r no ar hi i e mrt rp t yoTd oa ha e vrtdcC.nuch i a r tt oonpnnl st r i n s e u i GCi e nel e .k roBc i a rc s e dI tas emn oBrupt aanpu oEaost a s n l i n GSmua t nm a m n r r h r ge fc i e oah t t o mnv prt t n n goao aeon fs mo CMGi dbci i 20. Good governance in capital market has always been high on the agenda of SEBI. Comment. [Dec. 2014 (4 Marks)] TAXMANN®

e h t n i e e t t i m m o c t i d u a e h t f o s g n i t e e m e h t t c u d n o c l l a : hr se yn t n i t a n em dg en t i s w i l o el l ho Tf ) 2 (

de h et i f i n c ei p9 s4 e ds au ha Il Bc Ew0 . Se 0 en0 ha2 t r da ,e e e ec y t ue t i dh mo t mrn t i ons i Cd e g enn haa t eh fc c o nx saE nnk rc oe i t o vt a doS nGe eeh tt ma f mro oot cpn r eo e r m eCe hfe o t r g nsa e ol p g di n ect i n s i s a r i Bp L

d e i f i c e p s n e e b e v a h e c n a n r. e 5 v1 o0 g2 e, t s a n r o oi t pa rl ou cg fe o R s) t n R eD mO eL r ( i u I qB eE r ,S a h i d g nu I o nr i h yt l I t B n eE r S r uy Cb

y rr e a ct e ar c ne i a S t b y on la l p a . hme so c y n nCa n agr pne i c mi v o ot ccg a e er t hP a t r ro ,o 5 p 1sr 0r o 2o tc ,i s f ndo ous i A t n a o y l i r u t i god t eu n Rt o a c )t RS f Deo e Ohc Ltn r ( a e Ih i l Bt p Ei Sem o rmc e og pr n sfi ed At r a a cg i f e i r t

Ans.:

2 members 2 independent

1/3rd members whichever is greater directors b

4 times

120 days

Ans.:

S W A L S E I T I R U C E S : I T R A P

5.12

19. Discuss briefly the composition of ‘audit committee’ in terms of listing agreement and enumerate its role and responsibilities. [June 2013 (9 Marks)] Ans.: Please refer to answer of Question No. 18.

21. Write a short note on: Corporate Governance Compliance Certificate [June 2015 (4 Marks)]

5 1 0 2 , S N O I T A L U G E R ) R D O L ( I B E S : 5 . H C

, t r o p e R ’ s r o t c e r . i y Dn a ep hm t ho t c i we h dt ef xo es nr ne al d eo bh e or t a dh es r e i u h qt l el r a so i t ey t l a l ca i fu i n t r n e a Ct en ce ns ai s i l h p c mi oh Cw g n o l a s e g n a h c x E k c o t S e h t o t . ty n n ea s ep bm oo sc l e a h lt l a y hb sd ee t l i a f ct i f r i o t r p e e CR el ca nu an i n l p A me oh Ct h et hi Tw

I B E S e h t r e d n u e d a m e b o t d e r i u q e r e r a s e c n a i l p m o: c5 y1 l 0 r 2 e t , s r a n ui o qt a gl nu i g we oR l l ) o FR D O L ( f o . r de nt r ea nmu i h oq t r i Wf , r e t r a u q e h t g n i r u d d e v i e c e r e s o h t ) (

d n a r e t r a u q e h t g n i r u d f o d e s o p s i d ) (

d n e e h t t a d e v l o s e r n u g nr . i e n t i r a a mu eq r e eh s t of ho t ) (

TAXMANN®

, r e t r a u q e h t f o g n i n n i g e b e h t t a g n i d n e p ) (

f o . r de nt r ea nmu i h oq t r i Wf

rt s e a t mr l . r a ne ou rq at nf i r ha h ftu t o i rq e W dh nt eo

f o . r de nt r ea nmu i h oq t r i Wf

dk c no at ys l r e e h t t r a uo qt s tt i l mu s be ur sl la l i a c hn sa yn t fi i t n e et a dd e eg t n o s t i a l h r ea c he x Ty e

] 2 3 n o i t a l u g e R [

kgne. ka cnrhe ci m i r eti od oa t t t nt s lt s v i o eha,o er s t h pe e ho i t t g t n m ngi oi o r o n i i t t i t u wd t a t iolcm t iv i e o s mhh o me fr bse b f d o utr uf I s sB sna o s e ha lm lt E l l sl a n e cS ae ht h y d h sa s m b c n yt y e s a a d t t t e i e i a t t a s r fi t n n s oc i e ef e)i a s t e y d(i de p e e r l eg s t e g ut t t i nca s sn i a a a e l l r hs hn m a ec e c pr h hx o fe xi o Te Te os f t

n o i t a l u g e R [

] 1 3

. yees ) l cm( r ni e e at t g r n n a rma ue oh rc qvf o x agIe B teEk t i a c So mr yt bo upbs sr d d e loez c l fi i a i n hnc o g eo st p r c yo se t s i r tpa e n e th era e t cmo dn rt ea t oe s i f l i l p em ht i emt hon o Tc it

] 7 2 n o i t a l u g e R [

days

] 3 3 n o i t a l u g e R [

Financial Results

de h et z i n g gn oi ci v eg r ethn t e hm t i e wt a et l fi s l l a a h, se yg t n i t a n ehf c o dx ee r t e s b i k l cm eo ht u Ts n

] 3 1 n o i t a l u g e R [

Statement of deviation

investor complaints

21 days

Shareholding Pattern

21 days

Statement of investor complaints

21 days

Corporate Governance Report

Time limit Compliance to be made

Particulars

5.13

COMPLIANCES REQUIRED TO BE MADE UNDER THE SEBI (LODR) REGULATIONS, 2015 22. You are the Company Secretary of Sunglow Ltd., which being listed on the Stock Exchange after an IPO is made by the company. The Managing Director desires to know about quarterly compliance requirements under listing agreement. Prepare a list of quarterly compliances as per the listing regulations. [Dec. 2018 (4 Marks)] Ans.:

a b c d

n a n fi f o n o i s s i m b u s o t t c e p s e r h t i . ws r 3e 3t r na ou i t q a l e u v gt i eu Rc e hs t i n wo yc l 2 p r mo of cs t ol t u s ee r ur l l i a a i Fc -

e r a h s f o n o i s s i m b u s o t t c e p s e . s r r he t t i r wa 1u 3q ne oi v i t t a u l c u e gs en Ro hc t 2 i wr o yf l p n r me t ot ca op t g en r i ud l l i a o Fh -

f o . ns or i e s t s r i a mu bq ue sv i ot t u tc c e es pn so e c r h2 t r i o wf t )r 2 o ( 7 p 2e r ne oc i t n a a l i u l gp em Ro hc t e i c wn a yn l p r e mv oo cg ot e t a er r o up l r i a o Fc

l l a a t u i n p a n c A d f o n a n o s i e s r s a i h m s b f u o s n o o t i t t c a e i l p i s c e n r . o. hs c s t r e i r a r e we t r 4y ea h 3l t a nu ni q oc i n oe t n v a a i o l n i t u t u g fia c ee m e v rs Ri t n hu oo t f i c n c we s i2 t yn i r l p o mo f mc b, t o2 ur cr so o o t of p t e et er r r r t o up ui l l d i i e a a u FR Fa u

r e h t o y n a. s yd bn yu t o i t r n g ee tv a o hb t fa o e h gt nf i d o al l r t a fr o o ny on i a s n en po se ug sn fa o h c ex ce i t o k nc o et hs t d fe o z tn i p i g e o cc ee Rr

TAXMANN®

d e t s i l e h t f o s e r a h s e dh et t n a i dg n i d a r t e h t f o n o i s n e p s u s r o .f o Na i r re : a s t l i w u r o cc l r ,o l i I C B f rEs e a pSs i sys b Ad e i ei t ut sn s e i u

November 30, 2015

CIR/CFD/CMD/12/2015

Ans.:

S W A L S E I T I R U C E S : I T R A P

5.14

QUESTIONS BASED ON SEBI CIRCULARS

23. Bombay Stock Exchange Ltd. had suspended trading in shares of XYZ Ltd. for violating conditions of listing agreement. The company has now complied with the listing regulations requirements. By referring to SEBI circular/ regulations, discuss the criteria for suspension of the trading in the shares of the listed entities. [Dec. 2018 (4 Marks)]

CRACKER

Securities Laws & Capital Markets AUTHOR PUBLISHER DATE OF PUBLICATION EDITION ISBN NO PAGE NO. BINDING TYPE

: : : : : : :

N.S. ZAD TAXMANN FEBRUARY 2022 6TH EDITION 9789393880918 398 PAPERBACK

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Description This book is prepared exclusively for the Executive Level of Company Secretary Examination requirement. It covers the entire revised, new syllabus as per ICSI. The Present Publication is the 6th Edition for CS-Executive | New Syllabus | June/Dec. 2022 Exams, authored by CS N.S. Zad, with the following noteworthy features: u

Strictly as per the New Syllabus of ICSI

[Topic-wise] arrangement of past exam questions & answers

Coverage of the book includes n

Fully-Solved Questions of Past Exams

Solved Paper: December 2019 | New Syllabus

Solved Paper: December 2020 | New Syllabus

Solved Paper: June 2021 | New Syllabus

Solved Paper: December 2021 | New Syllabus

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[Most Amended & Updated] Covers the latest applicable provisions and amendments under the Companies Act, 2013 & SEBI Regulations

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