By:- Sujeet S.

Rahangdale

Mb.- 8484889185

12th “SECRETARIAL PRACTICE”. “SHORT REVISION NOTES FOR

FINAL EXAM”

1. BUSINESS FINANCE

Que 1: What is Financial Management (F.M)?

Ans: Also Called “Resource Management”

- It’s mainly concern with RISING OF FINANCE and its EFFECTIVE UTILISATION
OF FUND, for achievement of goal of the organization.

Definition:
According to KUCHAL S.C. - Financial Management deals with “procurement of
fund” and their “effective utilization of fund” in the business.
Two aspect of financial management:
A). RISING OF FINANCE
B). EFFECTIVE UTILISATION OF FUND

Que 2: What is the Role of financial Management?

Ans: SEE BOOK PAGE NO. 2

Que 3: What are the functions of Financial Management?

Ans: A). Routine function B). Executive Function

A). Routine function:

{ “PCC” ki ladki “RECORD & REPORTING” karke “PROVIDE” karti hai

“INFORMATION CURRENT FINANCIAL POSITION ” ki, “BOD” ko, jo “DECESION”
me kaam aati hai.}

1. Preparation of various financial statements.

2. Cash planning
3. Credit management
4. Record keeping & Reporting
5. Provide Information to Board of Director on current financial position for
making decision of purchase, pricing, marketing etc.
B). Executive Function:

{“FD” toda aur “INVESTMENT” kia to “DIVIDEND” mila to “CA” kia aur “ADVISE”
dia “BOD” ko ki tum bhi karo.}

1. Forecasting financial requirements

2. Deciding source of funds
3. INVESTMENT decision
4. DIVIDEND policy
5. Checking & Analysis of financial performance
6. ADVISING BOD

Que 3. What are the objectives of F.M.?

Ans: a. Profit Maximisation (SEE DETAILS IN PAGE NO. 4)
b. Wealth Maximisation (SEE DETAILS IN PAGE NO. 4)

Que 4. What is Financial Planning (F.P) AND ITS IMPORTANT?

Ans:
Definition: (FOR DETAIL SEE PAGE NO. 5)
According to j.h. Boneville- It’s a two fold aspects, refers not only to capital
structure but also financial policies of the company. Which is adopted by
company.

Que 5. What are the Significance of F.P.?

Ans: { IE, FUTURESTIC rahoge to 2(CD) milegi.}

1. Integration
2. Elimination of waste.
3. FUTURESTIC
4. Co-ordination
5. Communication
6. Dynamism
7. Decision making

Que 6. What is Capital Structure (C.S.)?

Ans: Meaning:
- Consist of two words Capital & Structure
- Capital = Investments of funds
 - Structure = Arrangments of different components in proper proportion
- Thus C.S. means “Mix-up of various sources of funds in disired proportion.
Definition:
According to Weston & Bringham: It’s PF (Permanent financing) of the firm
represented by long term debt, preferred stock and net worth.
OR
According to John H. Hampton: It’s relation between the Debt and Equity that
makes up firm financing of its assets.

Que 7: What are the Components / Part of C.S.?

Ans: 1. Equity share capital
2. Preference share capital
3. Retained earning
4. Borrowed Capital [its include (a) Debenture (b) Term loan]
Note: IF EXAMINER ASK FOR EXAMPLE OF THESE QUE, THAN SHOW ANY FIRM
BALANCE SHEET.

Que 8. Which factor influencing C.S.?

Ans: (A) INTERNAL FACTOR (B) EXTERNAL FACTOR

(A) INTERNAL FACTOR:

[ Rajkumar Sahab CA ACT k hisaab se PF kato tabhi BUSINESS GROWTH hogi.]
1. Requirement of capital
2. Size and nature of business.
3. Cash position
4. Adequate and stable earning
5. Attitude of management
6. Capital gearing [ “IT IS A RATIO BETWEEN DEBT AND EQUITY” ]
7. Trading on equity
8. Period of finance
9. Future of plan
10. Business growth of firm

(B) EXTERNAL FACTOR:

[ MA kar lia CG se tabhi to CAR kharidi ab TAX bhar rae yar]
1. Market condition
2. Attitude of investor
3. Cost of Capital
4. Government Regulation
5. Competition
6. Attitude of financial institution
7. Rate of Interest
8. Taxation
Que 9.What is Fixed Capital?
Ans: See Page no 12.
- Factor affecting requirement of Fixed Capital.
[ SaB NSG hai ]
1. Stage of development of business
2. Business cycle.
3. Nature of business
4. Size of business
5. Growth & Exapansion.

Que 9.What is Working Capital?

Ans: See Page no 14.
- Factor affecting requirement of Working Capital.
[“BUSINESS ka NATURE & SIZE badhane se SALE VOLUME aur
PRODUCTION badh gaya”]
[“BuT CG ME SER bahut hai”]

1. Nature of Business
2. Size of business
3. Volume of Sale
4. Production cycle

5. BUsiness cycle
6. Terms of Purchase and sale
7. Credit control
8. Growth & Expansion
9. Management ability
10. Seasonal function
11. External factor
12. Requirement of cash

Que 10. Difference between Fixed capital and Working capital

Ans: [PuNM SOR mat karo]
1. Purpose
2. Nature
3. Meaning
4. Source
5. Objective of Investor
6. Risk Involved

NOTE 1: In Exam Remember All Ques. of Differences must be start with

“MEANING”.
NOTE 2. Que of “Match the pair”, “One word Que” and “True & False” SEE FROM
THR BOOK Page NO. 18-19.
 CHEPTER -2. SOURCE OF BUSINESS FINANCE

Que: What Is FINANCE?

Ans: SEE PAGE NO. 20

BUSINESS FINANCE MAY BE CLASSIFIED:

(A) EXTERNAL SOURCE
(B) INTERNAL SOURCE

(A) EXTERNAL SOURCE:

1. Issue of share
2. Issue of debenture
3. Public Deposits
4. Loan from financial institution
5. Bank credit

(B) INTERNAL SOURCE:

- Internal sources are available within the firm. They develop after few years of
profitable working of the firm.
- The important internal source of finance is “RETAINED PROFIT.”

….”EXTERNAL SOURCE AND INTERNAL SOURCE MAY BE FURTHER CLASSIFIED”:-

(a) Long term source
(b) Short term source

(a) Long term source:

1. Owned capital
(i) Share
(a) Equity share
(b) Preference share
(ii) Retained share

2. Borrowed capital
(i) Debenture
(ii) Bonds
(iii) Loan from Institution
(iv) Loan from banks

(b)Short term source:

(i) Public deposit
(ii)Bank credit
(iii)Trade Credit
 (v) Loan from director
(vi) Advance from customer
(vii) Native money Lenders
(viii) Government assistance (Help)

Que2. What is SHARE and its FEATURES?

Ans: SEE PAGE NO. 22

Que3. What are the kinds of Share?

Ans: (A) Equity Shares: & Its Kinds of Equity Shares (ITS TWO TYPES)

(i) Equity share with voting rights {SEE PAGE NO. 26}
(ii) Equity share with Differential rights {SEE PAGE NO. 26}

(B) Preference Shares: & Its Kinds of Preference share (CN,CN,PN,RN)

{for detail see page no. 28}
(i) Cumulative preference share
(ii) Non- Cumulative preference share
(iii) Convertible preference share
(iv) Non- Convertible preference share
(v) Participating preference share
(vi) Non- Participating preference share
(vii) Redeemable preference share
(viii) Non- Redeemable preference share

Que4. What Is EQUITY SHARE?

Ans: SEE PAGE NO. 23

Que5. What are the FEATURES OF EQUITY SHARES?

Ans: [abkli bar PF nahi (NO) RIGHTS yaar, tabhi to RBI, FM pe CRR dega.]
(i) Permanent capital
(ii) Fluctuating dividend
(iii) NO preferential rights
(iv) RIGHTS
(v) Bonus & Right Issue (RBI)
(vi) Face value
(vii) Market value
(viii) Control
(ix) Risk’
(x) Residual Claimants
 Que5. What is PREFERENCE SHARE?
Ans: {SEE PAGE NO. 26}

Que6. What are the FEATURES OF PREFERENCE SHARE?

Ans: [agar FD, Pe, CM, VOTE kare to sabhi FRR ho jaenge]
(i) Fixed return
(ii) Dividend
(iii) Prior repayment of capital
(iv) nature of Capital
(v) Market value
(vi) VOTING rights
(vii) Face value
(viii) Rights or bonus share
(ix) Risk

Que7. What are the DIFFERENCE BETWEEN EQUITY & PREFERENCE SHARE?

[ jab MD, VaN, me FaN karne lage TaB samaj lo RISK hai CAPITAL ka]

(i) Meaning
(ii) rate of Dividend
(iii) Voting rights
(iv) Nature of capital
(v) Face value
(vi) Nature of investor
(vii) Types
(viii) Benefits of right share & bonus share
(ix) RISK
(x) CAPITAL appreciation
{NOTE: FOR FETAIL SEE PAGE NO. 29}

Que8. What is the meaning of RETAINED EARNING & its DETERMINATION?

Ans: [See page no. 30}
DETERMINATION:
[TOTAL EARNING k lie GOVERNMENT ko TAX aur DIVIDEND do]
(i) TOTAL EARNING of company
(ii) GOVERNMENT control
(iii) TAXATION policy
(iv) DIVIDEND policy
Que9. What are the DEBENTURES & Its CHARACTERISTICS?
Ans: [ SEE PAGE NO, 30]
CHARACTERSTICS OF DEBENTURES:
[AP me PF aur IT ka RIGHT, LaST hai]
(i) Assurance of repayments
(ii) Parties of debentures- (1. Company 2.Trustee 3.Debenture holder)
(iii) Promise
(iv) Face value
(v) Interest
(vi) Time of repayments
(vii) Rights of debenture holders
(viii) Listing
(ix) Security
(x) Terms of issue of debenture

Que10. Difference between SHARE & DEBENTURE?

[2 (ST.) caste k logo k lie MaN Se VOTE karo, tabhi to POSITION aur return milega]
(i) Status
(ii) Security
(iii) Time of issue
(iv) Types
(v) Meaning
(vi) Nature
(vii) Suitability
(viii) VOTING rights
(ix) POSITION on Liquidation
(x) RETURN on investments

Que11. What are BONDS & its TYPES & FEATURES?

Ans: [SEE PAGE NO. 34]
FEATURES OF BONDS:

Que12. What are the Public Deposits describe in details?

Ans: [SEE PAGE NO. 36]

Que13. Please explain following in brief? {SEE PAGE NO. 38}

(a) Overdraft
(b) Cash Credit
(c) Cash loans (Loan Arrangements)
(d) Trade Credit
(e) Discounting of bill of Exchange
Que14. Please explain Global Depositary Receipt (GDR) & American Depositary
Receipt (ADR) & Its Advantages?

Ans: [SEE PAGE NO. 40]

CHEPTER - 3. ROLE OF SECRETARY IN CAPITAL FORMATION

Que1. Explain the following terms on the basis of share?

(a) Issue of share AT PAR?

(b) Issue of share AT PREMIUM (SEC-78)
(c) Issue of share AT DISCOUNT(SEC-79)
(d) Issue of share AT BID PRICE

Que2. What is IPO (Initial Public Offer)

Ans: [SEE PAGE NO. 48]

Que3. What are the BONUS SHARE & What are the PROVISIONS related to bonus
share? [SEE PAGE NO.48]

Que4. What are the RIGHT SHARE (SEC-81), Pls explain its steps for issue?

Ans: [SEE PAGE NO. 49]

Que5. Please explain ESOS & its guidelines?

Ans: [SEE PAGE NO. 49]

Que6. What are the PROCEDURE for issue of share?

Ans: In these procedure two main steps are involved-

(a) Preliminary work

(b) Issue of share
1. PRELIMINARY WORK:
(i) Financial Planning
(ii) Drafting & filling of prospectus
(iii) Appointment of Bankers
(iv) Appointment of Underwriter
(v) Listing of share with Stock Exchange
 2. ISSUE OF SAHRE:
(i) Issue of prospectus
(ii) Receiving application
(iii) Sorting out Application
(iv) Preparation of list
NOTE:- Following are the two conditions possible in case of issue-
1. Under subscription
2. Over subscription

Que7. Please explain the MEANING & EFFECT of ALLOTMENT?

Ans: [SEE PAGE NO. 53]

Que8. What are the TWO CONDIOTIONS for VALID ALLOTMENT?

Ans: Two Conditions are given below:-
1. Statutory Condition
2. General Condition
(1). STATUTORY CONDITION:-
(a) Registration of Prospectus [Sec-60(1)]
(b) Application money [Sec-69(3)]
(c) Depositing the Application Money [Sec-69(4)]
(d) Minimum Subscription [Sec-69(1)]
(e) Beginning of allotment work
(f) Closing of Subscription list
(g) Permission to deal on stock exchange [Sec-73]
(h) Over Subscription

(2). GENERAL CONDITION:-

(a) Proper authority

(b) Allotment against application only

(c) Allotment not to be in contravention of law

(d) Reasonable time

(e) Communication

(f) Absolute and unconditional

Que9. What is irregular allotment & its effect?

Ans: [SEE PAGE NO. 55]

Que10. What are the Procedures of Allotment of share?

Ans:- Following are the procedures are given below:-

1. Preparation of Application list

2. Appointment of Allotment committee
3. Decision about basis of allotment
4. Finalization of Allotment
5. Board Meeting
6. Nominee of SEBI
7. Sending Allotment & Regret letter
8. Receiving Allotment money
9. Making entries on Allotments sheet
Filling Return of Allotment
Issuing Share certificate
Preparation of Register of members

Que11. What is SHARE CERTIFICATE & its CONTENTS? (SEC-113)

Ans:- [SEE PAGE NO. 57]

Que12. What are the “Statutory Provision” regarding ISSUE OF SHARE

CERTIFICVATE?
Ans:- [“CS” bananne k bad “STD” ki dukan pe(“PE”) “SHARE”, “DISPATCH”, kia]
1. Time limit
2. Default
3. Sanction of the board
4. Contents of certificate
5. Seal & signature
6. Entry in the register of member
7. Preservation
8. DISPATCH by registered process
9. SHARE in demat form
NOTE: please write ans in same sequence.

Que13. What are the “PROCEDUREs” for ISSUE OF SHARE CERTIFICATE?

Ans:- Following are the PROCEDURES given below

 1. Printing of share certificate
2. Filling the details
3. Board meeting
4. Public notice & Circular letter
5. Dispatch of share certificate

Que14. What is SHARE WARRANT & its STATUTURY PROVISION[SEC-114]?

Ans:- [SEE PAGE NO.59]

Que15. What are the PROCEDURES for ISSUE OF SHARE WARRANT?

Ans:- [“WCL” me “BPL” k log kaam kar rahe hai jinhe “ROM me ENTRY” karke
pata kar sakte hai]
1. Written application
2. Lodgement ticket
3. Complying legal condition
4. Board sanction
5. Preparation of share warrant
6. ENTRY in REGISTER OF MEMBER (ROM)
7. Letter to applicant
NOTE: please write ans in same sequence.

Que16. Explain “TRANSFER of SHARE” & its STATUTORY PROVISION?

Ans:-[SEE PAGE NO-61]
STATUTORY PROVISIONs – [“PATTI” ped ban gae]
1. Instrument of transfer (SEC-108)
2. Transfer by legal representatives (SEC-109)
3. Application for transfer (SEC-110)
4. Power to refuse transfer (SEC-111)
5. Time limit for issue of share certificate.

NOTE: please write ans in same sequence.

Que17. What are the PROCEDURES of TRANSFER OF SHARE?

Ans:
1. Submission of instrument of transfer (TRANSFER FORM)
2. Verification of instrument of transfer
3. Notice of Lodgement
4. Board sanction
5. Registration of Transfer
6. Issue of share certificate
Que18. Explain TRANSMISSION OF SHARE in case of DEATH, INSOLVANCY, &
LUNACY?
Ans:- [SEE PAGE NO.- 63]

Que19. What are the “PROVISIONS” regarding TRANSMISSION of SHARE?

Ans:-
1. Ownership of share
2. Rights of legal representative
3. Notification of company
4. Powers of Board

Que19. What are the PROCEDURES for TRANSMISSION OF SHARE in case of

DEATH, INSOLVANCY, & LUNACY?
Ans:- [SEE PAGE NO.- 63]

Que20. Difference between SHARE CERTIFIACTE & SHARE WARRANT?

Ans:- [ “NTR” “Q” “DPS” school me padhane k bad “CM” “SA” lagta hai]
1. Negotiability
2. Transfer
3. Rights of the holder
4. Qualification share
5. Distribution of Dividends
6. Petition for winding up to the company
7. Stamp duty
8. Which Company can issue
9. Meaning
10. For which Share
11. Approval
Que21. Difference between TRANSFER of SHARE & TRANSMISSION of SHARE?
Ans:- [“MKR” se “ISC” hai]

1. Meaning
2. Kind of action
3. Reason
4. Initiative
5. Stamp duty
6. Consideration
 CHAPTER 4 ISSUE OF DEBENTURE
Que1. What is the meaning & Definition of DEBENTURE?
Ans:- [SEE PAGE NO-70]

Que2. What are the STATUTORY PROVISIONs related to ISSUE OF DEBENTURE?

Ans:- [I, M, mr.T.,P., jo PVR ki SECURITY karta hai]
1. Issue by public as well as private company
2. Mode of issue
3. Terms of issue & Redemption
4. Power to issue under section 292(1)
5. Permission of SEBI
6. Voting Right’
7. Register of debenture
8. SECURITY against debenture.

Que2. What are the CONDITIONS for valid Issue of debenture?

Ans:- [SEE PAGE NO-71]

Que3. What are the PROCEDURES relating to ISSUE OF DEBENTURE?

Ans:- [ BaS, CA agar CT me aaya to PA bhejo DEBENTURE aur INDEX OF
DEBENTURE pata karne k lie]
1. Board resolution
2. -resolution by Share holder
3. Consent of SEBI
4. Approval of stock exchange
5. Credit rating
6. Trust deed
7. -issue of Prospectus
8. -receiving Application and allotting debenture
9. Issue of DEBENTURE certificate
10. –register & INDEX OF DEBENTURE holder
NOTE: please write ans in same sequence.

Que4:- What are the PROVISIONS regarding CONVERSION of DEBENTURE?

Ans:- [PF k RATE aur REJECTION ka karan pata karo fir companu ko LETTER liko]
1. Prospectus (letter of offer)
2. Filling of copy
3. Rate of conversion
4. Rejection of conversion offer
5. Letter of option
Que5. What are the PROCEDURES for CONVERSION of DEBENTURES?
Ans:- [BOARD LETTER likhta hai AC wale ROM me baith k ENTRY aur FILLING kar
rae hai]
1. BOARD resolution
2. LETTER of option
3. Allotment of share
4. Change in register of charges
5. ENTRY in ROM (register of member)
6. FILLING of return of allotment

Que6. What are the PROVISIONS regarding REDEMPTION OF DEBENTURES?

Ans: [ DCP ]
1. To Create DRR (Debenture Redemption Reserve)
2. Default in repayment
3. Penalty for default

Que7. What are the PROCEDURES for REDEPTION OF DEBENTURE?

Ans:-
1. Board meeting
2. Intimation about Redemption to debenture holder
3. Refund
4. Change in Register of Debenture holder
5. Change in the Register of Charges
6. Intimation to ROC

Que8. What are the METHODS of REDEMPTION OF DEBENTURE?

Ans:-
1. Redemption after FIXED PERIOD
2. Redemption by ANNUAL INSTALMENTS
3. Redemption by DRAW METHOD
4. Redemption by OWN PURCHASE METHOD
5. Redemption by FRESH ISSUE METHOD
 CHAPTER 5. DEPOSITS
Que1. What is the MEANING and ADVANTAGES of Deposits?
Ans:- [SEE PAGE NO. 78]

Que2. How can Company INVITE THE DEPOSITS?

Ans:- [SEE PAGE NO. 79

Que3.What are the RESTRICTIONS & LIMITATIONS on the ACCEPATANCE OF

DEPOSITS?
Ans:- [SEE PAGE NO. 80]

Que4. What are the SECRETARIAL DUTIES related with invitation & acceptance of
deposits?
Ans:- [2(SAB) DSPP banana k lie RESOLUTION pass karo]
1. Statutory requirement
2. Approval the advertisement
3. Board meting
4. Statement in lieu of advertisement
5. Arrangement of issue a receipt
6. Board Resolution
7. Depositor’s list
8. Security of application form
9. Publish the advertisement
10. Prepare the application form
11. RESOLUTION passed

Que5. What are the SECRETIAL DUTIES related to RENEWAL of DEPOSITS?

Ans:- [BAR me ENTRY band hai]

1. Board Resolution
2. Approval from depositors
3. Renewal Receipts
4. ENTRIES in register of depositors

Que6. Please explain REPAYMENT method of DEPOSITS?

Ans:- (A) Maintenance of Liquid assets
*(B) Repayment of Deposits
[FOR DETAILS SEE PAGE NO- 82]
Que7. What are the DEFAULT & REMEDIES regarding DEPOSITS?
Ans:-

 Penalty for default in invitation of deposits

 Repayment of deposits
 Penal interest on overdue deposits
 Deposits by small depositors

Que8. What are the penal actions in case of SMALL DEPOSITORS?

Ans: [SEE PAGE NO. 83]

CHAPTER – 6 DEPOSITORY & DEMATERIALIZATION

Que1. What are the various CONSTITUENTS & CONCEPT in DEPOSITORY SYSTEM?
Ans:-
1. Depository
2. Depository participants (DP)
3. Beneficial Owner
4. Issuer company
5. Dematerialization
6. Fungibility
7. Rematerilisation
8. International Securities Identification Number (ISIN)
[FOR DETAIL SEE PAGE NO.-88]

Que2. What are the NEEDS & IMPORTANCE of Depository System?

Ans:- [FOR DETAIL SEE PAGE NO.-88]

Que3. What are the steps involved in the procedure of dematerialization of

security?
Ans:-
1. Opening client Demat account
2. Submission of Demat request and Scrip certificate by investor
3. Forwarding of DRF and Scrip certificate to companies Registrar
4. Forwarding copy of DRF to depository
5. Confirmation of receipt of DFR by depository
6. Updating the records by company
7. Confirmation of dematerialization to the depository
8. Updating of records by depository
9. Confirmation by the depository
10. Updating the records of DP
11. Confirmation of dematerialization by DP.
Que4. What are the SECRETARIAL DUTIES is ISSUNG SECURITIES in
DEMATERIALIZATION FORM?
Ans:- [FOR DETAIL SEE PAGE NO.-90]

CAHPTER-7 DECLARATION AND PAYMENT OF DIVIDEND

Que1. What is DIVIDEND & Please explain its FEATURES?
Ans:- [FOR DETAIL SEE PAGE NO.-93]

Que2. What are the LEGAL PROVISIONS REGARDING ASCERTAINMENT OF

DIVIDEND?
Ans;- [FOR DETAIL SEE PAGE NO.-94]

Que3. Please explain the SOURCES from which DIVIDENDS can be paid?
Ans:- 1. Management Decide the Source 2.Compulsory Transfer to Reserve
3. Provision for Depreciation

1. Management Decide the Source-

 Out of Profit
 Out of Capital Profit
 Out of Accumulated Profit and Reserve
 Out of Money provided by Government

2. Compulsory Transfer to Reserve {SEC-205 (A)}-

Rate of Dividend Minimum amount Transfer to RESERVE
 More than 10 up to 12.5 - 2.5
 More than 12.5 up to 15 - 5.0
 More than 15 up to 20 - 7.5
 More than 20 - 10.00

Que4. What are the LEGAL PROVISIONS REGARDING DECLARATION OF

DIVIDEND?
Ans;- [FOR DETAIL SEE PAGE NO.-95]

Que5. What are the LEGAL PROVISIONS REGARDING PAYMENT OF DIVIDEND?

Ans;- [FOR DETAIL SEE PAGE NO.-96]

Que6. What are the PROCEDURES of PAYMENT OF DIVIDEND?

Ans:- Following Procedures given below:-
1. Convening Board Meeting after finalization of accounts
2. Resolution by Board
3. Notice to stock exchange for closure of transfer of books
4. Ensuring the various provisions of the Act are compiled with
5. Convening AGM
6. Preparation of dividend list
7. Posting of dividend warrants
8. Public notice to share warrant holder
9. Transfer to ‘Unpaid Dividend Account’

Que7. What is the Meaning of Unpaid Dividends & Unclaimed Dividends?

Ans:- [SEE PAGE NO.- 97]

Que8. What are the PROVISIONS regarding UNPAID/UNCLAIMED DIVIDENDS?

Ans:- As per SEC-205
 Unpaid Dividend Account
 Penal Interest
 Transfer to “INVESTOR EDUCATION & PROTECTION ACCOUNT”
 Payment of Unpaid/Unclaimed Dividend
 Penalty

Que9. What is the Meaning of Final Dividend & Interim Dividend?

Ans:- [SEE PAGE NO.- 98]

Que10. Difference between INTERIM DIVIDEND & FINAL DIVIDEND?

Ans:- [LARA k MD’D ka pata SOURCE se lagao]
 Legal Aspect
 Rate of dividend
 Authorization
 Meaning
 when it’s Declared?
 who Declares?
 Source of Declaration

CHAPTER-11 FINANCIAL MARKETS

Que1. What is the Meaning of FINANCIAL MARKET?
Ans:- [SEE PAGE NO.- 138]
Que2. What is the ROLE OF FINANCIAL MARKET (FM)?
Ans:- F.M. is of great use for a country, its help economy in following ways-
 Saving mobilization
 Investments
 National Growth
 Entrepreneurship growth
 Industrial development

Que3. What is the meaning of MONEY MARKET? And it’s CHARACTERSTICS

Ans:- [SEE PAGE NO.- 138]

Que4. What are the MONEY MARKET INSTRUMENTS?

Ans:-
1. Commercial paper [SHORT NOTE Can Ask]
2. Commercial bill [SHORT NOTE Can Ask]
3. Certificate of deposits [SHORT NOTE Can Ask]
4. Treasury bills [SHORT NOTE Can Ask]
5. Government security [SHORT NOTE Can Ask]
6. Money Market Mutual funds [SHORT NOTE Can Ask]
7. Repo Rate [SHORT NOTE Can Ask]

Que5. What is CAPITAL MARKET?

Ans:- [SEE PAGE NO.- 138]

Que6. What are the CAPITAL MARKET INSTRUMENTS?

Ans:-

a. Preference share

b. Equity share

c. Non-voting Equity share

d. Cumulative Convertible preference share

e. Company F.D.

f. Warrants

g. Debentures & Bonds

Que7. What are the CONSTITUENTS of Indian capital market?

Ans:- 1. The Gilt Edged Market

-2. The Industrial security market

(a) Primary Market (b) Secondary Market

Que8. What are the features of The Gilt Edged Market?

Ans:- [SEE PAGE NO- 141]

Que9. What is PRIMARY MARKET (NEW ISSUE MARKET)?

Ans:- [SEE PAGE NO- 141]

Que10. What are the MODES of Rising Capital in the PRIMARY MARKET?
Ans:-
(a) Public Issue/Prospectus
(b) Right Issue
(c) Private Placement

Que11. What is SECONDARY MARKET? And It’s FUNCTION?

Ans:- [SEE PAGE NO- 142]

Que12. What are the DIFFERNENCE between Primary Market & Secondary Market?

Ans:- [PM k FUNCTION DiL se hote hai]

1. Participants
2. Meaning
3. FUNCTION
4. Determinants of prices
5. Listing requirements

Que13. What are the Difference between Money Market & Capital Market?

Ans:- [TIM ka dimag FRI]

1. Term of finance
2. Instruments
3. Meaning
4. Functions
5. Risk
6. Institution
 CHAPTER – 12 STOCK EXCHANGE

Que1. What is the Meaning & Definition of STOCK EXCHANGE?

Ans:- [SEE PAGE NO- 147]

Que2. What are the Important FEATURES of Stock Exchange?

Ans:- [SEE PAGE NO- 147]

Que3. Explain the Organization of Stock Exchange?

Ans:- [SEE PAGE NO- 148]

Que4. Explain about MEMBERSHIP of Stock Exchange?

Ans:- [SEE PAGE NO- 148]

Que5. What is CAPTAL MARKET?

Ans:- [SEE PAGE NO- 149]

Que6. What are the ROLE’S of stock exchange in Capital Market?

Ans:- [HER, FLEXIBILITY & VALUE]

1. Help in Rapid economic development

2. Encourage capital formation
3. Resource mobilization
4. FLEXIBILITY in investments
5. VALUE addition to the securities

Que7. What are the FUNCTIONS of Stock Exchange?

Ans:- [ ECONOMY me LPg ka PF BEST, MOTIVATION se badhta hai]

1. Economic barometer
2. Liquidity
3. Promotes capital formation
4. Protect investor’s interest
5. Fair evaluation of securities
6. BEST utilization of capital
7. MOTIVATION to management

Que8. What is BSE? And Its OBJECTIVES & What is the management of BSE?
Ans:- [SEE PAGE NO- 151]
Que9. What is NSE and It’s FEATURES?
Ans:- [SEE PAGE NO- 151]

Que10. What are the Trading procedures for an investor?

Ans:-
1. Opening DEMAT A/c
2. Selection of Broker
3. Getting Unique client no.
4. Entering ISIN of Scrip
5. Placing of the order
6. Contract note
7. Settlement

Que11. What is SEBI? And It’s OBJECTIVES?

Ans:- [SEE PAGE NO- 153]

Que12. What are the FUNCTIONS of SEBI?

Ans:- [SEE PAGE NO- 153]

Que13. What are the POWERS of SEBI?

Ans:- [SEE PAGE NO- 154]

Que14. Please Explain the following terms related to STOCK EXCHANGE?

1. Listing of Securities
2. Stock Broker
3. Jobber
4. Bull (TEJIWAL)
5. Bear (Mandiwala)
6. Stag
7. Contract note
8. Trading Ring
9. Auction
10. Institutional Investor
Note:- [SEE PAGE NO- 154]

*****************************WISH U GOOD LUCK**************************************

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