Faculty of Law

Marwadi
B.A. LL.B. (Hons) / B.Com. LL.B. (Hons)
University Semester VIII
Subject Teaching Scheme
Law on Corporate Finance Credit
Name Theory Practical Tutorial
Subject
4 3 0 1
Code

Course Objectives
1. To introduce the functions & rules applicable to corporate finance
2. To imbibe basic concepts which enable the financial decision making by Company
3. To determine various investment tools, strategy and instruments etc.

Course Outcomes
On completion of this course, students will be able to
1. Know basic on Equity Public/ Private Funding.
2. Illustrate Indian Equity- Non-Fund Based regulation.
3. Solve the problems of Debt Funding – Indian Fund Based (Corporate Debt).
4. Examine by identifying causes related Debt Funding – Indian Non-Fund Based.
5. Establish opinion through judgments on regulation on Foreign Funding – Instruments &
Institutions
6. Elaborate Company Listing on Indian/International Stock Exchanges procedures and
laws & solutions in related problems.

Detailed Syllabus: (per session plan)

Case Laws/ Reading
Unit/Session(in
Description Material
hours)
MODULE 1 • Concept of ‘Securities’ The Alternative Investment
INDIAN EQUITY • Types of Issues Policy Advisory Committee,
– PUBLIC • Eligibility Requirements to be Complied 2nd Report, 2016
FUNDING with for an IPO under SEBI(ICDR)
Regulations, 2018 Country Framework Report
(10 hours) for Private Participation
Indian Equity – Private Funding
 • Alternative Investments Fund Managers in Infrastructure by World
Directive Bank and Public-Private
• SEBI (Alternative Investment Funds) Infrastructure Advisory
Regulations, 2012)
Facility, 2000
• Angel Funds
• Seed Funding
• Private Equity
• Venture Capital

MODULE 2 • SEBI (ICDR) Regulations, 2018 Analysis of Non-fund Based

INDIAN • Eligibility Financial Services: Some
EQUITY- NON • Rights of FCD/PCD holders Insights from India by
FUND BASED • Bonus out of Free Reserves Gursharan Singh Kainth, 2011
• Bonus Issue not to be in lieu of Dividend published in Research in World
(10 hours) • Implementation of Proposal within fifteen Economy 2(1)
days
• Procedure for Issue of Bonus Shares
• SEBI (LODR) Regulations, 2015 in
reference with Sweat Equity

MODULE 3 • Introduction Securities and Exchange Board

DEBT FUNDING • Debt Market of India vs. Prebon Yamane (I)
– INDIAN FUND • Debentures Ltd. (03.11.2015 - SC) :
BASED • Types of Debentures MANU/SC/1266/2015
(CORPORATE • Security
DEBT) • Tenure Securities and Exchange Board
• Mode of Redemption of India vs. ICAP India Pvt.
(10 hours) • Basis of Negotiability Ltd. (24.11.2015 - SC) :
• Governing Framework For Debt Securities MANU/SC/1359/2015
• The Companies Act, 2013 & the
Companies (Share Capital and Debentures) Gujarat Urja Vikas Nigam
Rules, 2014 Limited vs. Amit Gupta and
• SEBI (Issue of Capital and Disclosure Ors. (08.03.2021 - SC) :
Requirements) Regulations, 2018 MANU/SC/0157/2021
• SEBI (Issue and Listing of Debt Securities)
Regulations, 2008 The National Stock Exchange
• SEBI (Listing Obligations and Disclosure of India Ltd. vs. Competition
Requirements) Regulations, 2015 (“Listing Commission of India
Regulations”) (05.08.2014 - COMPAT)
• RBI Guidelines
State Bank of India vs. Jah
Debt Funding – Indian Fund Based Developers Pvt. Ltd. and Ors.
(Government Debt & Banking (08.05.2019 - SC)
Finance)
• Bonds- An Introduction
• Masala Bonds
 • Bank Finance
• Credit Facilities Provided by the Banks
• Overdrafts
• Cash Credit Account (CC A/C)
• Bills Finance
• Leasing Finance
• Hire-Purchase Finance
• Rupee Export Credit

• Introduction Central Bureau of

MODULE 4 • Credit Facilities Provided by the Banks Investigation vs. Hari Singh
DEBT FUNDING • Letter of Credit Ranka and Ors. (18.07.2017 -
– INDIAN NON- • Types of Letter of Credit SC) : MANU/SC/1708/2017
FUND BASED • Parties involved in Letter of Credit Finance
• Documents handled under Letters of Credit Bank of Baroda vs. Kotak
(10 hours) • Uniform Customs and Practice for Mahindra Bank Ltd.
Documentary Credit (UCPDC 600) (17.03.2020 - SC) :
• Bank Guarantee MANU/SC/0313/2020
• Appraisal Methodology for Different Type
of Non Fund Based Credit Products Maharashtra State Electricity
• Credit Appraisal Distribution Company Ltd. vs.
• Assessment of Limit of Letter of Credit Datar Switchgear Limited and
• Assessment of Limit of Bank Guarantee Ors. (18.01.2018 - SC) :
MANU/SC/0017/2018

SKS Power Generation

(Chhattisgarh) Ltd. and Ors.
vs. Canara Bank (11.08.2021 -
BOMHC) :
MANU/MH/2123/2021

Standard Chartered Bank vs.

Heavy Engineering
Corporation Ltd. and Ors.
(18.12.2019 - SC) :
MANU/SC/1775/2019
MODULE 5 • Regulatory Framework in India Indian Social Action Forum vs.
FOREIGN • Euro Issue Union of India (UOI)
FUNDING – • External Commercial Borrowings (ECBs) (06.03.2020 - SC) :
INSTRUMENTS • Procedure of Raising ECB MANU/SC/0297/2020
& • Special Dispensations under the ECB
INSTITUTIONS Framework Manzoor Ali Khan vs. Union of
• Issue of FCCBs and Depository Receipts India (UOI) (06.08.2014 - SC) :
(10 hours) (DRs) MANU/SC/0668/2014
 • American Depository Subramanian Swamy
Receipts vs.
(ADRs)/Global Depository Manmohan Singh and Ors.
Receipts
(GDRs) (31.01.2012 - SC) :
MANU/SC/0067/2012
MODULE 6 • SEBI (LODR) Regulations, 2015 – A brief Website of various
LISTING – overview international stock exchanges
INDIAN STOCK
International Listing
EXCHANGES
• Singapore Exchange Limited (SGX)
(10 hours)
• National Association of Securities Dealers
Automated Quotations (NASDAQ)
• London Stock Exchange
• Main Market
• Alternative Investment Market (AIM)
• NOMAD
• Listing of Depository Receipts on the PSM
• Luxembourg Stock Exchange
• Listing a share/GDR on BdL market
• Listing Shares /GDRs on the Euro MTF
• US Securities and Exchange Commission
• Securities Exchange Act, 1934

60 Hours

Text Book
1. Principles of Corporate Finance Law by Eilis Ferran and Look Chan Ho, 2014,
Published to Oxford Scholarship
Reference Books
• SEBI Manual
• SEBI Monthly Bulletin
• Companies Act 2013 and Rules
• Corporate Law Adviser
• SEBI and Corporate Laws
Websites :
• www.sebi.gov.in
• www.nseindia.com
• www.bseindia.com
• www.rbi.org.in
• www.mca.gov.in