Contents

Part I

Government Control of Corporate Activity

*

Competition Law

3

Q.

Give introduction to Competition Law?

3

Competition Policy

3

Q.

Name briefly the Competition Laws in other Countries?

4

Q.

What are the advantages of Competition?

4

Q.

Define nature and scope of the Indian MRTP Act, 1969?

5

Sachar Committee Report – 1977

5

Recommendations of Sachar Committee

6

Q.

Part A—State the Sachar Committee’s Recommendations for the Companies Act, 1956?

6

Concepts and Definition

6

Classification of companies

6

Management Structure and Professionalisation of Management

Managerial and Executive Recommendation

7

Shareholder Protection and Mismanagement

7

Accounts and Audit

8

Social Responsibilities of Company

8

Political Donations

8

Q.

Part B—State the Sachar Committee’s Recommendation for MRTP Act, 1969?

8

Concept and Definition

8

Concentration of Economic Production

9

Monopolistic, Restrictive and Unfair Trade Practices

9

Administrative Machinery

9

Competition law on the Recommendations of Raghavan Committee

10

Q.

What are the Objects of Competition Act, 2002?

10

Objects of the Act

10

Prohibition of Anti-Competitive Agreements

11

Q.

What are the anti-competitive agreements of the Act?

11

Prohibition of Abuse of Dominant Position

11

Regulation of Combinations

11

Establishment of Competition Commission of India

12

Structure of the Commission

12

Penalties for Non-compliance of Orders

12

Competition Appellate Tribunal

12

Competition Advocacy

13

Competition Fund

13

Recommendations of Raghavan Committee

13

*

The Foreign Exchange Management Act, 1999

17

Introduction

17

Important Provisions in FEMA

17

Capital Account Transaction

17

Currency

18

Foreign Exchange

18

Foreign Security

18

Security under FEMA

18

Regulation, Restrictions and Management of Foreign Exchange

18

Export of Goods and Services

18

Penalties under FEMA

19

Relevant Provisions of Exchange Control Manual for the Purpose of FEMA

19

Q.

State the relevant procedure of Refund of Inward Remittances?

19

Q.

What is the application for remittances in foreign currency?

19

Q.

What is the mode of payment of rupees against sale of Foreign Exchange?

19

Exception

20

Q.

What is the status of Travell-ers Cheque neg-otiable only in India?

20

Q.

What is the mode of reim-bursement outside India?

20

Q.

How the Import of Foreign Curr-ency Notes takes place?

20

Q.

Define mode of Reconversion of Indian Currency?

20

Q.

What is the Rates of Exchanges?

20

FERA and FEMA - Comparision

20

Q.

What are the similarities between FERA and FEMA?

21

Differences between FERA and FEMA

21

Q.

What is the difference between FEMA and FERA?

22

A Step Ahead From FERA to FEMA

23

Q.

How FERA made a progress in drawal of Foreign Exchange?

23

Q.

How the omission of Criminal Proceedings takes place in FEMA?

24

Q.

Define Residential Status?

24

Q.

What is the position of immovable property outside India under FERA and FEMA?

24

Q.

How the transaction of immovable property in India takes place under FERA and FEMA?

24

Q.

What are the provisions of Export of Services under FEMA?

24

Q.

Define the terms which are included in FEMA in progress to FERA.

25

What type of restrictions?

25

Q.

What are the restrictions pertain to Foreign Exchange under FEMA?

25

Q.

What are the obligations of Exporter of Goods and Services?

25

Q.

How the repatriation of Foreign Exchange takes place?

25

Q.

Who is the Authorised Person?

25

Q.

Explain the procedure of prosecution of offences committed?

26

Q.

Who is Adjudicating Authority?

26

Q.

State the jurisdiction of Special Director (Appeals)?

26

Q.

State the jurisdiction in appeal to the Appellate Tribunal

26

Q.

What are the powers of Director of Enforcement?

26

Procedure under FEMA

26

Q.

How the inquiry by Adjudicating Authority under (S. 14) takes place?

26

Q.

How the appeal to Special Director (Appeals) (S. 17) preferred?

27

Q.

How the appeal to the Appellate Tribunal (S. 19) preferred?

27

Q.

How the appeal to High Court (S. 35) preferred?

27

Q.

What is the amount of penalty under FEMA?

27

Case laws

28

FEMA

28

*

The Foreign contribution (Regulation) Act, 1976

30

Q.

Give introduction to FCRA, 1976?

30

Q.

What are the applications of FCRA?

30

Q.

What are the restrictions to FCRA?

30

Q.

What are the exceptions to FCRA?

30

Q.

How the modifications in FCRA takes place?

31

Important Provisions Under FCRA

31

Foreign Source

31

Foreign Hospitability

31

Regulations and Restrictions on Foreign Contribution and Foreign Hospitability

31

Penalties for Offences under FCRA

32

*

The sick Indiustrial Companies (Special Provisions) Act, 1985

33

Introduction of sick Industrial Companies in India

33

Q.

Discuss briefly the salient features of the Act relating to sick industries and its objectives?

33

Q.

What is a sick industrial company?

33

Q.

What are the reasons of becoming sick?

34

Q.

What are the symptoms of becoming sick?

34

1. Internal Reasons

34

2. External Reasons

34

3. Symptoms of Industrial Sickness

34

Q.

Comment on establishment of Board for Industrial and Financial Reconstruction (BIFR)

35

Q.

What are the obligations of such companies?

35

Q.

Explain the role of BIFR?

35

Q.

Define the mode of execution of Order by BIFR

36

Q.

How the winding-up takes place?

36

Q.

What are the objectives of the Act?

36

Q.

Explain the Industrial undertaking?

37

Q.

Sec. 5. Discuss briefly Appellate Authority for Industrial and Financial Reconstruction

37

Q.

Sec. 4. Discuss briefly the Board for Industrial and Financial Reconstruction

38

Q.

Sec. 15. Discuss briefly reference to Board

38

Q.

Sec. 16. Explain briefly enquiry into working of the Industrial Company?

38

Q.

Sec. 18. Explain briefly pre-paration of schemes?

39

Q.

Sec. 19. Explain briefly rehabilitation by Financial Assistance?

39

Q.

Sec. 20. Explain briefly winding-up of Sick Industrial Company?

39

Q.

Sec. 23. Explain briefly proce-dure in the case of loss of 50% net work by Industrial Companies?

40

Q.

Sec. 24. Explain briefly mis-feasance proceedings?

40

Q.

Sec. 25. Explain briefly to Appeal?

40

Q.

Sec. 33. Explain briefly to Penalties?

40

Q.

Sec. 34. Explain briefly to offences by Company?

41

*

Board for industrial and financial reconstruction (BIFR)

42

Q.

How does the hearings in BIFR takes place?

42

Q.

What is the mode of Final BIFR Order/Scheme?

42

Q.

What are the advantages in BIFR scheme?

42

Q.

How does the reduction of Share Capital takes place?

42

¨

Features of BIFR

42

a. Capital Restructuring

42

b. Settlement of Creditors

43

Q.

Discuss briefly Shares at Discount in one-time settlement to creditors?

43

Q.

What is the Right to Re-compensation?

43

Q.

What is the Leveraged Buy Out?

43

c. Issue of Quasi-equity Instruments

43

d. Income-tax Issues

44

e. Use of existing production facilities pending the final BIFR Order

44

f. Request for suspension of contracts, agreements, etc

44

Symptoms of Sickness

45

*

The Essential Services Maintenance Act, 1968

46

Q.

What are the objectives of ESMA, 1968?

46

Q.

Explain Essential Services?

46

Q.

Define strike?

46

Q.

Sec. 3. Explain briefly power to prohibit strikes in certain Employments?

47

Q.

Explain briefly Sec. 4. Dismissal of employees participating in illegal strikes?

47

Q.

Explain briefly Sec. 5. Penalty for illegal strikes?

47

Q.

Explain Sec. 6. Penalty for instigation?

47

Q.

Explain Sec. 8. Power to prohibit Lock-outs?

47

Q.

What are the Consequences of Sec. 8 of ESMA?

47

Q.

Explain Sec. 9. Power to prohibit lay-off?

47

Q.

Explain Sec. 10. Power to arrest without warrant?

47

*

The Securities and Exchange Board of India Act, 1992

48

¨

(Functions of SEBI)

49

Q.

What are the Fraudulent and Unfair Trade Practices?

50

Q.

Briefly explain Inspection and Enforcement Procedure of SEBI?

50

Important provisions under SEBI Act, 1992

50

¨

Collective Investment Scheme

50

¨

Prohibition of Manipulative and Deceptive Services, Insider Trading and Substantial Acquisition of Securities or Control

50

¨

Securities and Exchange Board of India General Fund

51

Major Penalties under SEBI Act

51

*

Emergence of Securities Depositories in India

54

Q.

Who is the Issuer/Registrar and Transfer Agent Guided Tour under NSDL?

57

Q.

Comment on the role of Registrar in Type-II connectivity?

60

*

The Securities Contracts (Regulation) Act, 1956

61

Q.

Define Stock Exchange?

61

Q.

How the recognition of Stock Exchange takes place?

61

Q.

Define powers of a recognised Stock Exchange?

61

Q.

Define power of Securities and Exchange Board of India?

62

Some Important Provisions of Securities Contracts (Regulation) Act, 1956

62

Security Contracts

63

Q.

Explain the concept of Illegal Contracts?

63

Q.

Briefly explain Void Contracts?

63

Q.

Discuss briefly the exceptions to the Securities Contracts (Regulation) Act, 1956?

63

Case laws

63

Part II

Corporate Finance institutions

*

Financial Institutions

67

The Industrial Finance Corporation (IFCI)

67

Q.

Give salient provisions of the legislation in respect of Financial Institutions?

67

Q.

Write a short note on ICICI Ltd.?

68

Q.

Explain the aim and objects of ICICI in India?

68

Industrial Credit and Investment Corporation of India (ICICI)

68

Object of ICICI

68

¨

Table 2: Financial Assistance by ICICI

69

Industrial Development Bank of India (IDBI)

71

Q.

Explain the role of IDBI with reference to long-term finance in industry?

71

Q.

Discuss the Operations of the IDBI?

72

Q.

Explain the role of IDBI in giving assistance to Backward Areas?

72

Q.

Explain the concept of refinance facilities by IDBI?

73

Q.

How IDBI gives assistance to small-scale sector?

73

Q.

Explain balanced Regional Development?

73

Q.

Define Soft Loan Scheme?

74

Q.

How restructu-ring of IDBI takes place?

74

Q.

Criticially examine the role of Narasimham Committee (1991) on IDBI?

74

Industrial Investment Bank of India (IIBI) (OR IRBI)

75

Q.

Discuss recent growth of IDBI?

75

Q.

Discuss Financial Assistance by IDBI?

75

Unit Trust of India

76

Q.

Explain the role of UTI as a financial institution?

76

Q.

What are the various guide-lines for Private Sector Banks given by RBI?

77

Q.

Give the guidelines for Banks entering into Insurance?

77

Reserve Bank of India

78

Q.

Briefly discuss RBI as note issuing authority?

78

Q.

What are the various departments under RBI?

78

Q.

Explain the term RBI as banker to Government?

78

Q.

Explain the term RBI as Bankers Bank?

79

Q.

Discuss the role of RBI as controller of credit?

79

Q.

Discuss the role of RBI as a tender of last resort?

79

Q.

Explain the term emergency advance?

79

Q.

Explain the assistance given by RBI to special agencies?

79

Q.

Briefly discuss the relation between client and bank?

80

Q.

What are the consequences of dishonour?

80

Part III

Specific Companies/Corporate Bodies

*

Banking

83

Q.

Write a detailed note on History of Banking

83

Q.

Give Introduction to Banking?

84

Banking Regulation Act, 1949

84

Q.

What is the purpose behind enactment of BRA, 1949?

84

Q.

Discuss the aim of the Act?

84

Q.

How the Social Control is imposed by the Amending Act?

84

Q.

State Preamble of Amending Act

85

Q.

Briefly explain the procedure to improve Social Control?

85

Q.

Ist Step

85

¨

Additional controls and restrictions were imposed

85

Q.

IInd Step

85

Q.

Discuss the applicability of the Act to different types of banks?

85

Q.

Explain Sec. 2 Application of other laws not barred?

86

Q.

Explain Sec. 3 Act to apply to co-operative societies?

86

Q.

Explain Sec. 4 Power to suspend operation of Act?

86

Q.

Explain Sec. 5(b) “banking”?

86

Q.

Explain Sec. 5(c) “Banking Company”?

86

Q.

Explain Sec. 5(ca) “Banking policy”?

86

Q.

Explain Sec. 5(ffc) “Recon-struction bank”?

86

Q.

Explain Sec. 6 Forms of business in which Banking Co’s may engage?

87

Q.

Write short notes on: bank, banker, banking or banking company

87

Q.

What is the purpose of Acceptance of Deposits?

87

Q.

Explain Sec. 8 Prohibition of Trading?

87

Q.

Explain Sec. 9 Disposal of non-banking assets?

87

Q.

Explain Sec. 10 Prohibition of employment of managing agents?

87

Q.

Explain Sec. 10A?

87

Q.

Explain Sec. 10B Banking company to be managed by Chairman?

87

Q.

Explain Sec. 11 Requirement of paid-up capital?

87

Q.

Explain Sec. 12 Regulation of Capital and Voting Rights?

88

Q.

Explain Sec. 13 Restriction on Commission etc. on sale of shares?

88

Q.

Explain Sec. 15 Restriction on Payment of Dividend?

88

Q.

Explain Sec. 16 Prohibition of common directors?

88

Q.

Write a short note on Sec. 17 Reserve Fund?

89

Q.

Write a short note on Sec. 18 Cash Reserve?

89

Q.

Write a short note on Sec. 20 Restrictions on loans and advances?

89

Q.

What are the restrictions on power to remit debts?

90

Q.

Explain Sec. 21 Power of Reserve Bank to Control Advances by Banking Companies?

90

Q.

Explain Sec. 22 Licensing of Banking Companies?

90

Q.

What are the restrictions on Opening of New, and Transfer of Existing Place of Business?

92

Q.

Explain the powers of the Reserve Bank to give directions?

92

Banker & customer

94

Q.

Define Banker?

94

Q.

Define Agency services?

94

More characteristics of present day bankers

94

Q.

Define General Utility Services?

95

Q.

Define Black’s Law Dictionary?

95

Q.

Define Customer?

95

Q.

Discuss relationship between Banker and Customer?

95

Q.

Discuss the types of services, decide the nature of relationship of the Banker and Customer?

95

Case Law on Banking Regulation Act

96

Q.

Explain the Banking Regulation Act with reference to different case laws?

96

Trustee and beneficiary trust

99

Principal and agent

100

Bailor and Bailee

100

Q.

Explain Sec. 148 of Contract Act?

100

Reserve Bank of India Act, 1934

100

Q.

What is Currency Chests?

100

¨

Structure of R.B.I. is

100

¨

Nationalization of the bank

100

¨

Management

100

Q.

Elaborate the functions of the Bank?

101

*

Various Types of Accounts in banks

103

Q.

Describe Current Deposits?

103

Q.

Describe Saving Deposits?

103

Q.

Discuss the mode of Opening of New Account?

104

Q.

What is Recurring Deposit Accounts and Special Accounts?

104

Q.

What are the general precautions to be taken by a bank in opening of a New Account

104

Q.

Discuss the risks in opening Accounts without proper Introduction?

105

Special Type of Banker’s Customers

106

Minor

106

Q.

Who is Natural Guardian of Minor

106

Q.

Discuss Minor as Agent?

107

Q.

Discuss Minor as Partner?

107

Q.

What are the precautionary measures in lieu of account of minor?

108

Married Women

108

Q.

What are the precautionary measures in lieu of account of a married woman?

109

Illiterate Person

109

Trustees

110

Q.

What are the precautionary measures in lieu of account of the trustees?

110

Customer’s Attorney

110

Q.

What are the precautionary measures in lieu of accounts maintained by customer’s attorney?

111

Drunken persons

111

Pardanashin Woman

111

Lunatics

112

Q.

What are the precautionary measures in respect to lunatic’s account?

112

Hindu Family

112

Q.

What are the precautionary measures in lieu of account of joint Hindu family?

113

Clubs, Societies and Charitable Institutions

113

Q.

What are the precautionary measures in lieu of account of Clubs, Societies and Charitable Institutions?

113

Executors and Administrators

114

Q.

Discuss the precautionary measures in accounts maintained by executors and administrators?

115

Joint Stock Companies

116

Q.

Explain the mode of opening and operating Joint Stock Companies?

116

Q.

Discuss the precautionary measures of Joint Stock Companies accounts?

116

Q.

Discuss the procedure in opening a bank account in the name of a public limited company?

116

Private Companies

117

Other Companies

117

Q.

Discuss the precautionary measures regarding the rights & duties of directors of the company?

118

Q.

Discuss the precautionary measures regarding advances to companies?

118

Q.

What are the precautionary measures regarding cheques in favour of the company?

118

Q.

Discuss the precautions to be taken by a banker when a sole trader concern or a partnership is converted into a private limited company?

118

Examination of Documents

119

Copy of the Board’s Resolution

119

The Borrowing Power of the Company

119

Q.

What are the precautions to be taken by the banker in its transaction?

119

Directors Personal Accounts

120

Partnership

120

Q.

Discuss the precautionary measures in a Partnership Account?

120

Advances to Partnership Firm

121

Joint Account

121

Q.

Explain the mode of operation of a Joint account?

121

Q.

Discuss the precautionary measures in Joint account?

122

Q.

Explain the liability of Banking in case of Defects in Services with the help of latest case laws?

123

*

Insurance

132

Q.

Write a detailed History on Insurance?

133

Q.

Write a note on Foreign History of Insurance?

134

Q.

Give in detail Indian History of Insurance?

135

Q.

Define Contracts of insurance?

136

Q.

Differentiate between Insurance and Wager?

137

Q.

What are the Fundamental Elements of Insurance?

137

Q.

Discuss Life Insurance contract: [Life Insurance Act, 1956]?

140

Q.

Discuss the types of Policies of Life Insurance?

140

Q.

What is Surrender Value?

141

Q.

What are the characteristics of Fire Insurance?

141

Q.

Explain types of Policies of Fire Insurance?

141

Q.

What is Marine Insurance?

141

The Insurance Act, 1938

142

Q.

Describe the aims of Insurance Act?

142

Q.

What are the special features of the Act?

142

Q.

Describe the salient features of the Act?

142

Q.

Explain Insurance against third party risks?

143

Q.

Define Motor Vehicles Act?

143

Q.

Define Indemnity?

143

Q.

What is the object behind this policy?

143

Q.

Discuss vicarious liability with caselaws?

143

Q.

Define public place?

143

Q.

Motor Vehicle

144

Health Insurance

145

Q.

What is Health Insurance?

145

Q.

Why do you need it?

145

Q.

Explain the concept of Social Insurance?

146

Q.

What are the Social Security Legislations?

146

Q.

Describe Social Security Measures and International Labour Organisations with different caselaws?

147

Insurance and Consumer Protection Act

150

Part IV

Regulatory frameWork for Multinational Companies

*

The UNCTAD Code on Transfer of Technology

153

Q.

Give Salient features of UNCTAD Code of Transfer of Technology?

153

Preamble

153

Q.

What are the Objectives and Principles of UNCTAD?

154

Q.

Describe National Regulation of TOT?

154

Q.

Briefly explain Jurisdiction and Dispute Settlement Procedure of UNCTAD?

154

Q.

Discuss Dispute Settlement?

154

Q.

Describe Nationalisation and Compensation?

155

Q.

Define General Treatment?

155

Q.

Define Code of Conduct for TNC’S?

155

Q.

Why Code of Conduct needed?

155

*

Foreign Company

157

Q.

Discuss the procedure in setting up a Liaison Office/Representative Office of a foreign company?

157

Q.

What are the standard conditions imposed for operations of Liaison/Representative Office of a foreign company?

157

Q.

Explain the mode of setting up a Project Office?

157

Q.

Explain the mode of setting up a Branch Office?

158

Q.

Write a short note on Joint Venture (J.V.) with an Indian Partner or Establishment of wholly owned subsidiary (WOS)?

158

Q.

Describe the Role of Foreign Investment Promotion Board (FIPB)?

158

Q.

What are the other modes of Foreign Direct Investments?

158

Q.

Explain Preference Shares?

159

QUESTION

159

Q.

What is the meaning of a foreign company (Section 591)?

159

Q.

Discuss establishment of place of business in India by estoppels?

160

Q.

What is foreign controlled company?

160

Q.

What is the case if Indians holding 50% share capital in a foreign company [Section 591(2)]?

160

*

Foreign companies in india and corporate law

161

Q.

What is a Foreign Company?

161

Q.

Explain the initial obligations of the Foreign Company?

162

Q.

Explain the continuing obligations of the Foreign Company?

162

Q.

How the service on the Foreign Company is made?

163

Q.

What is the case if a Foreign Company ceasing to have a Place of Business in India?

164

Q.

What is the effect of the Foreign Company not complying with its obligations?

164

Q.

Discuss the Registration of Charges in respect to a Foreign Company?

164

Q.

Give details of issue of prospectuses of Foreign Companies?

165

Q.

Describe Winding-Up of Foreign Companies?

166

Part V

Corporate liability in Environment Protection

*

Relevant provisions relating to environmental protection laws

169

The Water (Prevention and Control of Pollution) Act, 1974

169

Q.

Discuss briefly the salient features of the law relating to water prevention?

169

Q.

Discuss the liability in offences by companies?

169

The Air (Prevention and Control of Pollution) Act, 1981

170

Q.

Discuss the liability in offences by companies with reference to Air Act, 1981?

170

The Environment (Protection) Act, 1986

170

Q.

Discuss the liability in offences by companies with reference to Environment Act?

170

The Indian Penal Code, 1860 (Relevant Provisions)

171

Q.

What is the criminal liability in Negligent Act. Likely to Spread Infection of Disease Dangerous to life?

171

Q.

Discuss the criminal liability fouling Water of Public Spring or Reservoir?

171

Q.

Discuss the criminal liability of punishment for Public Nuisance in Cases not otherwise provided for?

171

Q.

Define mischief?

171

Q.

What is the punishment under Section 426 for mischief?

171

Q.

Explain the criminal liability in Sec. 511. Punishment for Attempting to Commit Offences Punishable with Imprisonment for Life or other Imprisonment?

172

Relevant Section under the Code of Criminal Procedure

172

B. Public nuisances

172

Q.

Briefly discuss Sec. 133. Conditional order for removal of nuisance?

172

Q.

Explain Sec. 144. Power to issue order in urgent cases of nuisance or apprehended danger

173

The Factories Act, 1948

174

Q.

Define cleanliness under Factories Act, 1948?

174

Q.

How the disposal of wastes and effluents should be carried out?

175

Q.

Explain Sec. 41B. Compulsory Disclosure of Information by the Occupier?

175

Q.

Discuss Sec. 96A. Penalty for contravention of the provisions of Sections 41B 41C and 41H?

176

*

The Bhopal toxic gas leak tragedy

177

Q.

Discuss in detail the struggle for compensation in Bhopal Gas Leak Tragedy?

177

Table 5.2 Chronology of legal events

178

Q.

How you ‘explain the term victims remain victims’ in reference to Bhopal Tragedy?

180

Part VI

Sample Question Papers

*

Sample Question Papers

183

Sample Paper 1—Corporate Law II

184

Sample Paper 2—Banking and Insurance Laws

184

Sample Paper 3—Banking and Insurance Laws

185

Sample Paper 4

186

Sample Paper 5

186

Sample Paper 6

187

Sample Paper 7 (with hints)

188

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