Financial markets-3

Question 1

Banning of unregulated deposit schemes act, 2019 was passed in order to secure poor investors from —.
Major scams-
Act amends 3 laws-

Answer 1

• Ponzi schemes.
• Rose valley, Saradha, IMA jewels scam in Bengaluru.
• 1.The Reserve Bank of India Act, 1934
  2.The Securities and Exchange Board of
  India Act, 1992 and
  3.The Multi-State Co-operative Societies
  Act, 2002.

Question 2

Union cabinet has also approved introduction of Chit funds amendement bill, 2019 in lok sabha. It amends—- which prohibits creation of chit funds without—-, It — limit of chit funds. And the max commission for foreman i.e. —- also — from — to — . Bill calls chit fund as —,— and —-. Chit fund comes under —. Therfore regulated by —-.

Answer 2

• Chit funds act, 1982- without approval of state govt.
• The bill INCREASES the limit of chit funds to ₹3 lakh for those run by up to four individuals and ₹18 lakh for those operated by more than four partners.
• Person managing the chit- increased from 5% to 7%.
• Fraternity fund, rotating savings and credit institution.
• Concurrent list.
• Respective state govts and not by RBI or SEBI

Question 3

• — released a market study on e-commerce (EC) in India. EC is growing at — annually, —. Reasons for this growth-
• Two types of EC models-

Answer 3

Competition comm of India- 51% , highest in the world.
-Reasons for growth: Smartphone penetration
and access to internet, cash on delivery, heavy discounts, faster deliveries including one-day
delivery, large product range etc.
- Inventory based and marketplace based.

Question 4

Inventory based- goods and services are — by the selling entity and sold directly. FDI-
Market place based model- amazon- FDI-
—- was released to provide framework for EC.

Answer 4

-Owned- FDI not allowed.
- 100% FDI under the automatic route.
Draft EC policy

Question 5

Rules for EC- — sell products in which they own equity.
——- exclusive sell.
Not more than – of inventory from a single vendor.
EC FDI comes under ambit of sec 15 of —-.
— deep discounts and formation of a dedicated authority to oversee and settle disputes.

Answer 5

Cant.
Banned.
25%.
FEMA- Foreign exchange mgmt act.
NO.

Question 6

For deep discounts — has organized not only —- but also—-.

Answer 6

CCI- Self regulation but also anti-trust services for investigation on case by case basis.

Question 7

— is an online market platform to facilitate procurement of goods and services by various Ministries and agencies of the Government. It was launched in —. by — with tech support of —-.

Answer 7

GeM- 2016- Directorate gen of supplies and disposals with tech support of National e-governance div, MeitY

Question 8

GeM is — and is directly monitored by —-. Purchases through GeM are also — as made by —. —- states and uts have signed an MoU with GeM. GeM 2.0 was launched in —-, now GeM 3.0 has also been launched to —,

Answer 8

National Procurement portal- PMO 
Mandatory as amde by finmin.
24 states and uts.
2016- GeM 3.0 which
would offer standardised and enriched catalogue management, powerful search engine, real time price comparison, demand aggregation, advanced MIS and analytics and more.

Question 9

Stringent Corporate
Governance Guidelines for Core Investment
Companies (CICs) by —-. Coz at present they are – applicable to CICs. Panel also recmd setting up —.

Answer 9

RBI- Not applicable.

-Board-level committees- Audit Committee, Nomination and Remuneration Committee and Group Risk Management Committee.

Question 10

A CIC is a — that carries on the business of acquisition of shares and securities and holds not less than — of its net assets in the form of investment in —-. And investments in equity shares in —- companies should constitute not below — of its —.

Answer 10

NBFC- 90%- equity shares, preference shares, bonds, debentures, debts or loans in group companies.
Group companies- 60% of its net assets.

Question 11

Board of directors are governed by the —–. It also provides for —- within the BoD.

Answer 11

Companies Act 2013- Independent directors within the BoD.

Question 12

Kumar Mangalam Birla comte, Naresh chandra comte, Narayana Murthy comte and JJ Irani Comte are related to —-.

Answer 12

Corporate governance.

Question 13

—– has launched Independent director’s databank. It will be maintained by —–.
Independent director is someone who does not have any —- or — relationship with the company or its directors. Independent director cant be —-.

Answer 13

Corporate Affairs Min- Indian Institute of corporate affairs- Material or financial relationship- Managing director, a whole time director or a promoter of the firm or its executive directors.

Question 14

Acc to —- atleast —- of all directors should be —-.
-In line with Kotak Committee recomds, SEBI (Listing Obligations and Disclosure Requirement (LODR)) (Amendment) Regulations, 2018, has mandated top 500 listed companies to have —- director, and same is applicable to — from april, 2020.

Answer 14

Companies act- 1/3rd- Independent directors.
In line with Kotak Committee
recommendations, SEBI (Listing Obligations and Disclosure Requirement
(LODR)) (Amendment) Regulations, 2018
impose stricter obligations that require at least half of the total directors of the board of a listed entity to be IDs if the Chairperson is executive/related to the
promoter, and in other cases, at least one-third IDs.

Question 15

Acc to —, the CSR comte of company should have atleast — and —.

Answer 15

Companies act- 3 directors and 1 Independent director.

Question 16

It mandates that every company, —–, which either has a ——of Rs 500 crore or a —- of —- or—– of Rs 5 crore, needs to spend at least 2%
of its—– for the immediately preceding three financial years on CSR activities.
- The CSR activities in India should — be undertaken in the normal course of business and must be
with respect to any of the — activities of CSR mentioned in—- of the act.

Answer 16

Private limited or public limited- net worth -turnover of Rs 1,000 crore- net profit- average net profit.
Not- 17 - Schedule VII

Question 17

A high level comte on CSR under — in 2018 submitted its report.

Answer 17

Injeti Srinivas

Question 18

Serious fraud investigation office- under jurisdiction of — and coordinating agency with — and —. And it is a multidisciplinary org.

Answer 18

MCA- Income tax and CBI

Question 19

Firm which reduces its costs below that of its competitors would not be considered as —-.

Answer 19

Predatory pricing