Maharashtra National Law University Mumbai

Program: B.A LL.B. (5 years) Semester: VII

Course: Securities Law (Elective Course) Code:

Teaching Scheme Evaluation scheme

Internal Continuous Term End

Lecture Practical Tutorial Credit Assessment (ICA) Examinations (TEE)
(Weightage) (Weightage)

(1 hour) 4 50 50

Pre-requisite : Basic Knowledge of Company Law, Contract Law, Structures of Business, Knowledge of
basic company documentation and processes.

Objectives:

• To imbibe in student’s in-depth understanding of fundamentals of Securities Law and its co-
relation with Companies Act, 2013, Foreign Exchange Management Act and other allied laws and
regulations.

• To develop in student’s ability to analyse advanced and complex concepts of Securities Laws.

• To develop in students required skill set to understand securities market.

• To make students understand the concept from the perspective of different roles a lawyer play in
securities market be it a lawyer to SEBI, investment banker, broker or listed/unlisted companies,
depositories, credit rating agencies, portfolio funds etc.

Outcomes:
After completion of the course, students would be able to:

• The students will develop the ability to solve real world problems on securities law.
• The students will understand the role of each regulator, market player and investors while
imbibing the learning from practice perspective be it SEBI, investment banker, broker or
listed/unlisted companies, depositories, credit rating agencies, portfolio funds or proxy advisor or
an investor etc.
• Student will get initial documents in the securities market such as DRHP, RHP, IPO, FPO, Offer
for sale, share subscription agreement, shareholders agreement and share purchase agreement etc.
Detailed Syllabus: (per session plan)

Unit Description Duration

in hrs.
1 Understanding Securities Market

Meaning of Securities 18 Hours

Kinds of Securities

Understanding basic contracts governing securities market

Intermediaries in securities market

Role of SEBI and SAT

SEBI Act, 1992

Securities Contracts Regulations Act, 1956

Case Laws:

1. Almondz Global Securities Ltd. v. SEBI Appeal No. 275 of 2014

(13.05.2016)
2. B.K. Holdings (P.) Ltd. v. Prem Chand Jute Mills [1983] 53 Comp
Cas 367 (Cal.)
3. Dahiben Umedbhai Patel v. Norman James Hamilton (1985) 57 Com
Cas 700 (Bom)
4. K.C. Sharma v. Delhi Stock Exchange (2005) 4 SCC 4
5. Karnavati Fincap Ltd. and Alka Spinners Ltd v. SEBI [1996] 87 Comp
Cas 186 (Guj)
Further important cases to be given in classroom.

2 Issue of securities and its kinds 15 hours

Transfer of securities

Acquisitions including Takeovers

Allied SEBI Regulations

SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

SEBI (Listing and Disclosure Requirements) Regulations, 2015

SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011

Case Laws:

1. A.R. Dahiya v. SEBI [2016] 133 SCL 10 (SC)

2. Daichai Sankyo Company Ltd. v. SEBI [2010] 103 SCL 1
3. DLF Ltd. v. SEBI Appeal No. 331 of 2014 (13.03.2015)
4. HFCL Infotel v. SEBI [2008] 82 SCL 1999
5. M/s Modipon Ltd. v. SEBI MANU/SB/0074/2001
 Further important cases to be given in classroom.

3 Kinds of Fraudulent and Unfair Trade Practices 12 Hours

Regulatory approach

SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to

Securities Market) Regulations, 2003

Case Laws:

1. Babubhai Desai v. SEBI Appeal No. 81 of 2014 (15.02.2016)

2. Bellary Graphics Ltd. v. SEBI [2009] 92 SCL 117 (SAT - Mum)
3. BNS Steel Trading (P) Ltd. v. Orissa Songe Iron and Steel Ltd. (2010)
2 CompLJ 425 (CLB)
4. Bonanza Biotech Ltd. v. UOI [2005] 62 SCL 84
Further important cases to be given in classroom.

4 Corporatisation and Demutualisation 05 Hours

Enforceability of options contract

SEBI’s power over recognised Stock Exchanges in India

Case Laws:

1. K.C. Sharma v Delhi Stock Exchange (2005) 4 SCC 4

2. MCX Stock Exchange Limited. v SEBI Writ Petition No.213 of 2011
3. National Stock Exchange of India ltd. v Central Information
Commission [2010]100 SCL 464 (Del)
Further important cases to be given in classroom.

5 Insider Trading 10 Hours

US approach

Indian approach

SEBI (Prohibition of Insider Trading) Regulations, 2015

Regulation of Mutual Funds and other kinds of investment funds

Case Laws:

1. Alok Khetan v SEBI [2008] 86 SCL 187 (SAT – Mum.)

2. Anil Harish v SEBI [2012] 114 SCL 407 (SAT – Mum.)
3. Bankim J. Shah v SEBI [2012] 116 SCL 461 (SAT – Mum.)
4. Bhagwati Developers (P.) Ltd. v Peerless General Finance &
Investment Co. Ltd. [2013] 120 SCL 264 (SC)
5. CG-Vak Software & Exports Ltd. v SEBI [2014] 127 SCL 176 (SAT –
Mum.)
Further important cases to be given in classroom.

Total 60 Hours
Text Books:

1) Bare Acts:

a. The Securities Contracts (Regulation) Act, 1956

b. The SEBI Act, 1992

c. The Depositories Act, 1996

d. The Companies Act, 2013

2) Regulations:

a. SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

b. SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

c. SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market)
Regulations, 2003

d. SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011

e. SEBI (Prohibition of Insider Trading) Regulations, 2015.

3) Agrawal and Baby on SEBI Act, 1992, Taxmann, 2011

4) A Ramaiya, Guide to the Companies Act, 2013, 18th Edition, LexisNexis, 2015

5) Kaushik L, Unfair Trade Practices in Securities Market (Taxmann 2013)

6) Mishra B, Law relating to Insider Trading (Taxmann 2015)

7) Parekh S, Fraud, Manipulation and Insider Trading in The Indian Securities Markets (CCH
2013)

Prescribed Readings:

1) G.K. Kapoor & Sanjay Dhamija, “Company Law: A Comprehensive Text Book on Companies Act
2013”, 18th Edition, Taxmann Publication, Delhi, 2015

2) E. Gordon & K. Natarajan: Capital Market in India; Himalaya Publishing House, Ramdoot, K.
Natarajan, Dr. Bhalerao Marg, Girgaon, Mumbai - 400004.

3) Sanjeev Aggarwal : Guide to Indian Capital Market; Bharat Law House, 22, Tarun Enclave,
Pitampura, New Delhi – 110 034.

4) V.L. Iyer : SEBI Practice Manual; Taxman Allied Service (P) Ltd., 59/32, New Rohtak Road, New
Delhi-110005.

5) M.Y. Khan : Indian Financial Systems; Tata McGraw Hill, 4/12, Asaf Ali Road, New Delhi – 110
002.

6) S. Suryanarayanan: SEBI – Law, Practice & Procedure; Commercial Law Publishers (India) V.
 Varadarajan Pvt. Ltd., 151, Rajindra Market, Opp. Tis Hazari Court, Delhi - 110054

7) Mamta Bhargava : Compliances and Procedures under SEBI Law; Shreeji Publishers, 8/ 294,
Sunder Vihar, New Delhi – 110 087

8) Taxmann : SEBI Manual

9) Asim Kumar Mishra : Venture Capital Financing in India; Shipra Publications, 115A, Vikas Marg,
Shakarpur, Delhi-110092.

10) Shashi K Gupta : Financial Institutions and Markets ; Kalyani Publishers, 4863/2B, Bharat Nishja
Aggarwal Ram Road, 24, Daryaganj, New Delhi -110002 Neeti Gupta

11) Vishal Saraogi : Capital Markets and Securities Laws simplified, Law point Publication, 6C, R.N.
Mukherjee Road, Kolkata-700001

Reference Book:

1) Sir Francis Beaufort Palmer, “Palmer’s Company Law”, 22nd Edition, Sweet and Maxwell, 1976

2) L.C.B. Gower, “Principles of Modern Company Law”, Sweet and Maxwell Publication, London

3) Dr. N.V. Pranjape, “The New Company Law”, 6th Edition, Central Law Agency, 2014

4) C.R. Datta & Kamal Gupta, “Datta on Company Law”, Orient Law House, 5th Edition, 1992.

Essential Reading Article:

1) Christopher Finch, In the Market, The illustrated History of Financial Market, Abbville press
publishers, New York, 2001.

2) BSE Heritage available on www.bseindia.com

3) A History of the Global Stock Market: From Ancient Rome to Silicon Valley University of
Chicago Press. Edn, 2004

4) Miachel Flurient, Investment Banking Explained, The Mcgraw-Hill Companies 2008

5) A historical perspective of the securities market reforms in India, available at www.sebi.gov.in

Any other information:

Specific assessments / methods Weightage

Continuous assessment in percent

Mid-term Examination 20

Assignments, Project Study, Presentation and Viva (Detail below) 30

Final Examination 50

Total 100

Assignments, Project Study, Presentation and Viva:

Pre-synopsis Consultation 05

Synopsis 05

Draft 05

Final Submission 10

Viva Voce 05

Total 30