Capital Market

Front 1

What are the main functions of good financial system

Back 1

saving function

Liquidity function

payment function

risk function

policy function

Front 2

Primary market

Back 2

It is also known as new issue market

companies government or public sector institutes can obtain funding through the sale of new issue for bond issue

It is the part of capital market that deals with insurance of new security market

Front 3

Security market

Back 3

security market is the place where buyers and sellers of securities can enter into transactions to purchase and sell shares ,bonds, debentures exactra. The securities market has two segments primary and secondary market

For

1 continuous ready and market for securities

2.evaluation of securities

3 encourage capital formation

4 safety in dealings

5 public borrowing

6 healthy speculation

7 economic barometer

8 Bank lending

Front 4

What do you understand by i o s c o

Back 4

the international organisation of securities commission is the worldwide association of national securities regulatory bodies such as the 1.securities and exchange commission in United States

2.financial service authority in UK and

3. hundred other similar bodies

It was created in 1983

currently it has

145 members

118 ordinary members

12 associate members

and 15 affiliate

Objectives

exchange information on their respective experience in order to promote the development of domestic markets

unite their efforts to establish standards and an effective surveillance of international securities transactions.

Promote high standards in order to maintain just effective and sound market

Front 5

Capital market

Back 5

1.It is the market for financial investment that are direct or indirect claims to capital.

2. It is wider than security market and embraces all forms of lending and borrowing

3. it is a market with business enterprises and governments and rise long-term funds capital market is wider term and includes security market

4. security market is a market where equity shares, preference shares, avengers, and bonds are traded security market has following two segments primary market and secondary market

Front 6

Secondary market

Back 6

it is also known as aftermarket it is the financial market previously issued securities and financial instruments at a stock bonds options and futures are bought and sold stock market ask entry market freely marketable negotiable and price discharge.

Front 7

What are the common grievances of the investors in India

Back 7

he has furnished in inadequate information

Delay or non receipt:

for non receipt of refund order allotments letter

for security certificates of letter of offer in right issue

of right or bonus issue

of notice of general meeting

of annual reports

of dividend or interest

Front 8

To whom the investor should approach for complaint against stock brokers for depository participants

Back 8

Can launch their grievance with stock exchange or depositories

it can be lost at any office of BSE and NSE located in Chennai Mumbai Kolkata and Delhi. In case of unsatisfactory reduces BSE and NSE has designated investor grievance redressal committee or regional investor complaints resolution committee this forum acts as and mediator to resolve the claims disputes and differences between entities and complaints

Front 9

What are the legal provisions with regard to acceptance of deposit

Back 9

Section 73 to 76 of companies Act 2013

It prohibits acceptance of deposit accept from the members through ordinary resolution or accept deposits by eligible company being a public company subject to conditions specified in the rules.

Eligible company :

Net worth - 100 crore or

Turnover - 500 crore

no company and no eligible company shall accept or renew any deposit whether secured or unsecured which is repayable on demand or upon receiving a notice with in a period of less than 6 months or more than 36 month from the date of acceptance for renewal of deposit.

Front 10

Penalty for misstatement in the prospectus

Back 10

Section 447

Punishment with imprisonment for a term which shall not be less than 6 months but which may extend to 10 years

liable to find which shall not be less than the amount involved in fraud but which may extend to three times of the amount involved in fraud

Front 11

Legal provision to send investor protection with regard to failure to send financial statements

Back 11

Company - 25000

Every officer - 5000

Sec. 136

Front 12

SEBI investor protection and education fund regulations yr?

Back 12

2009

Front 13

MCA initiatives on financial education

Back 13

MCA has launched a website www.iepf.gov.in

Ministry Of corporate affairs

this website provides information on various aspects such as

the role of capital market,

IPO investing,

mutual funds investing,

stock investing,

stock trading,

depository account,

Debt market,

derivatives,

index fund,

indices,

investor guidance and arbitration, investor rights and obligations,

don't and do's exactra

Front 14

PFRDA initiatives on financial education

Back 14

The pension fund regulatory and development authority is the India's youngest regulatory regulator has been injured in spreading social security message to the public. It has developed FAQ on pension related topics on its web and has been associated with various non government organisations in India in taking the pension service to disadvantaged community.

Front 15

What is SCORES

Back 15

It is a web based centralised grievance redressal system of SEBI website is www.scores.gov.in helps investors to lodge and follow up their complaints and track the status of redressal of such complaints online from the above website from anywhere .

all activities starting from logging to of a complaint till its solution by SEBI would be online in an automated environment and complaint can view the status office complaint online and investor who is not familiar with course or does not have access to scores can lodge complaint in physical form at any of the offices of SEBI

it is assessed 24/7 complaints and reminders there on can we loss online at the above website anytime anywhere the complaint forwarded online to entire concern for it reduces the entity concerned uploads and action taken report on the complaint every complaint has an audit trial.

Front 16

Take over

Back 16

Means purchasing shares of a company with a view to take over management and control of a company when acquirer takes over control or management of target company IT terms as take over

Front 17

Escrow account

Back 17

not later than 2 working days prior to the date of the detailed public statement of the open offer for acquiring shares require shall create an escrow account towards securities for performance of his obligations under these regulations and deposit in account such aggregate amount as per the following :

1. First 500 Cr. - an amount equal to 25% of consideration.

2. on balance consideration - an additional amount equal to 10% of balance consideration

Front 18

How many instruments are there of capital market

Back 18

Three instruments that is hybrid ,pure, derivative

Front 19

Pure instruments

Back 19

Instruments include share shares equity shares preference shares debentures bonds which are issued with the basic characteristics without mixing the features of other instruments are called pure instruments

Front 20

What is share warrant

Back 20

is a bearer document of title to shares and can be issued by only public limited company and that too against fully paid up shares only

share warrant is transferable by mirror delivery of warrant without execution of any written instrument of transfer being registered by the company .

the bearer of the share warrant is not a member of the company unless otherwise provided in the article of the company

Front 21

Sweat equity shares

Back 21

sweat equity shares means equity shares issued by a company to its directors or employees at a discount for consideration other than cash for providing know how are making available rights in the nature of intellectual property right or value additions by whatever name called

- special resolution in gm

- after 1 year of commencement of business

- under the SEBI (issue of sweat equity) regulations 2002(listed company)

- not listed company - companies (share capital and debentures) rules 2014

-form number SH 3

Front 22

Differential voting rights

Back 22

Shares with differential voting rights means share issued with differential right as to dividend voting or otherwise.

Front 23

Cumulative preference shares

Back 23

When the areas of dividend are Cumulative

and such areas are paid before paying any dividend to equity shares

Front 24

Debenture and its types

Back 24

deventure includes debenture stocks, bonds or any other instrument of a company evidencing a debt ,whether constituting a charge on asset of a company or not

Types

naked or unsecured debentures secured debentures

redeemable debentures

prepetual debentures

bearer debentures

registered debentures

Front 25

Hybrid instruments

Back 25

instruments which are created by combining the features of equity, preference ,bond are called hybrid instruments

for example

convertible preference share

non convertible debentures with equity warrant

partly convertible debentures

secured premium notes

Front 26

Derivative instruments

Back 26

derivative instrument is a financial instrument which drives its value from the value of some other financial instrument or variable

for example futures and options belong to the category of derivatives

Front 27

Security premium note SPN

Back 27

Is a kind of non convertible debenture attached with warrant SPN is a hybrid security that is it combines both features of equity and debt products as b and can only be issued by listed companies after having approval from central government.

as been instruments are issued with detachable warrants is instruments have lock in period for 4 to 7 years no interest is paid during the locking period the detachable warrants are convertible into equity shares provide the experience are fully paid the conversion