A PROJECT ON CAPITAL MARKET

ROLL NO: 03
OBJECTIVES:-

1) To Regulate securities activities in a fair, transparent and

efficient manner
2) To Grow the capital markets, and diversify and develop
investment instruments thereof in accordance with best
international practice
3) To Enhance investor protection
4) To Reduce systemic risks arising from securities activities
5) To Impose requirements of full disclosure in order to achieve
fairness and transparency, and to prevent conflicts of
interests and the use of insider information
6) To ensure compliance with the rules and regulations related
to securities activities
7) To enhance public awareness of securities activities and of n
the benefits, risks and obligations arising from investments in
securities and encourage their development
8) To Raising capital as Equity, Debt, Securities Instruments
9) To Servicing and under writing the above capital raise
10) To Provide / Selling Insurance to investors for Risks
associated with capital raise
11) To Trading of Securities and providing access to secondary
market for liquidity
12) To regulate Stock exchange and the securities industry and
to promote their orderly functioning.
13) To guide, educate and protect the rights and interests of
individual investors.
14) To provide regulation of transactions in securities.
15) To regulate the buying and selling of securities outside the
limits of stock exchanges.
QUESTIONS:-
1) What does capital market mean? How does the company raise funds in
capital market?
2) What "rights issue" do the shareholders of a company have under
Companies Act, 1956?
3) What are the eligibility criteria for an unlisted company to make public
issue?
4) What are the eligibility criteria for a listed company to make public
issue?
5) Can a company make public issue of equity shares if partly paid shares
are not fully paid up?
6) How is the pricing of the issue done by following? a.) Listed Company,
b.) Unlisted Company
7) Who decides the denomination of shares in the public issue by a
company?
8) What is promoter’s contribution in public issue by following? i.) Listed
Company ii.) Unlisted Company
9) What is the minimum application if equity shares are being issued at
par?
10) How is the minimum tradable lot decided?

11) Explain minimum subscription. What is the minimum subscription

required for a company to utilize funds?
12) What are the SEBI guidelines for the issue of debt instruments?
13) Who decides rate of interest for debentures?
14) What are the pre-requisites for a company to make the public issue of
FCDs/ PCDs/ NCDs?
15) What does a company need to do if the issue is greater than Rupees
100crore ?
16) What functions does the Merchant bank perform when a company
wants to raise funds from intermediaries?
17) Explain Bankers to the issue.
18) What functions do the registrars to the issue perform?
19) What is credit rating? What are its main features?
20) Which agencies are authorized to perform credit rating in India?
21) What are the provisions of buy back of shares as per Companies Act,
1956?
22) What is venture capital? What is its importance?
23) What are the different types of venture capital financing?
24) What is capital budgeting? What is its importance?
25) What is time value of money? What are the techniques used for this?
26) What are the techniques available for evaluation of capital
expenditure proposals?
27) Explain payback period technique for evaluation of capital
expenditure proposal?
28) What is net present value? What are its acceptance rules, their
advantages and disadvantages?
29) What are the limitations of capital budgeting?
30) What are the steps taken for proper control on capital budgeting
process?