SEBI Legal AIM - 13 Aug - Complete - Solution - PDF

All India Mock Test
SEBI Grade A Legal 2023

Paper 1 Phase 2
Maximum marks (100) Time (60 mins.)

Instructions-
1) All questions are compulsory.
2) Figures to the right indicate maximum marks to each question.
3) Answers must be written only in English.
4) Marks will be deducted if word limit is not observed.
5) No copies shall be entertained after the last date of submission.
1|P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

Q.1 Write an Essay of about 250 words on any one of the following topics: - (30 Marks)
1. Electrification of rural India to reduce Energy Poverty is Need of the Hour.
It has not passed more than a year after the agreement on Sustainable Development Goals
(SDGs) was carried out at the UN General Assembly. SDGs comprise a set of 17 goals with
the intention to dramatically improve lives across the world by 2030. SDG7 is one of the
major goal that aims to ensure global access to affordable, sustainable, reliable and
modern energy. In fact, it could be considered a necessity for meeting all of the SDGs.
The advancement made towards accomplishment of SDG7 in India appears noteworthy

with electricity having been delivered to 97 per cent of the villages. The launching of the
Ujjwala scheme by the government is another initiative taken to provide LPG to 50 million
underprivileged households. However, a deeper analysis raises concerns.
The yearly growth rate of rural households, taking into account the decadal population
growth, is estimated at approximately 2 per cent, while the number of households being
electrified are increasing at an average annual rate of around 3 per cent.
The main concern is to find the way to connecting and sustaining un-electrified households
in the states which are lagging behind. A grid infrastructure for these households may
already be present in the villages they are situated. Several un- electrified hamlets in the
electrified main village are shown as electrified. There is a need to identify such habitations
and cover them under government schemes or through renewable energy-based mini-
grids engaging the private sector also and adequately incentivising them for this.
Ensuring access to clean cooking options is another important aspect of SDG7. The studies
suggest that fuel stacking is a major issue in most villages, though considerable progress
has been made under Ujjwala scheme.
At present, most of the power plants are not running to their full capacity. Thus, higher
plant load factor and better revenue sustainability for DISCOMs could be achieved through
the electrification of the cooking energy demand which will also lead to preventing the cost
towards creating a supply chain for cooking fuel. The promotion of star-rated energy-
efficient cook stoves with lower electricity consumption, higher efficiency and no emission
of harmful pollutants will be another feasible rural solution towards achieving SDG7.
2. Information Technology has overhauled work culture.
Information technology (IT) has brought the office to home by destroying the limitations
of the office. It has created a tremendous opportunity to work irrespective of the physical
conditions and disabilities of people. This revolution is no doubt the excellent means for a
nation to grow and develop.
Information technology has boost up the speed and accuracy and saved time. For instance,
in the field of communication, it has brought revolution. IT has multiplied the efficiency of
business.
Online education and distance education have opened a vaster vista for the students and
young professionals who have become able to pursue various courses at their own flexible
time in order to boost their career.
The revolution in the field of robotics has also increased speed of our work as well as
helped us do a strenuous and heavy task at ease. With the invention of remote, the olden
days are gone when we had to frequently get up from a cosy seat for changing the channels
or increase, decrease or modulate the volume of the television. The strenuous job that
humans cannot accomplish because of the requirement of many labourers, is now being
done easily by robotic machines. In the construction sites, we can see wide use of robotic
machines. It has saved labour and reduced time as well.
Information technology, in words, is a boon that has been upgrading our life greatly with
its latest incessant developments, by making our life more and more comfortable, and
largely saving our time day-by-day. The growth and development of digital knowledge has
made our life adventurous.
3. Life full of stress today
Stress, in the recent years, is the household name of kind of physical condition which is
considered the creation of modern hurry and lots of pressure of works and unmatchable
ambitions, and cyber world is also considered as the passive factor of this widely known
word of concern. Stress is anything that poses a threat or challenge to our well-being.
We suffer stress only when the intensity of it goes beyond the capacity of our endurance
power. It starts interfering with our mental as well as our physical health, and creates
psychological imbalance.
The probable causes of stress are varied and many. Same situations or incidences cause
stress in some people while, in others simultaneously become the source of excitement or
pleasure. There are different reasons behind such cases.
The work pressure, busy schedules, peer pressure, health issues, personal relationships,
financial problems and various irritants like noise; sometimes unpleasant people are also
the causes of stress.
Steps to control or relieve must be taken at the prime time as it can pose severe effects on
one’s health and even, in some cases, causes death to the person suffers. Some of the most

common effects of stress on our heath are: hypertension, diabetes, herpes, insomnia,
multiple sclerosis, etc.
Stress is sometimes considered accountable for suicides, family fights, marriage breakups,
road rage, and violence.
We should, therefore, identify the factors and probable causes of the mental conditions
that are behind our stress. Then, we must take appropriate steps to control or get rid of
the stress. In this case, the sooner is attempted; the better it is for our physical as well as
mental well-being. William James is praiseworthy in this regard for invaluable word, ‘The
greatest weapon against stress is our ability to choose one thought over another’.
4. The Pen is Mightier than the Sword. Comment.
The proverb originated from the play ‘Richelieu,’ by Lord Lytton. In the play, the character,
Richelieu saved himself from enemies through his writings. He also helped his country to
evade an alliance with another country.
Early man lived by the strength of his muscles. As civilisations progressed, reading and
writing emerged. The fate of nations was shaped by wars. Gradually, man realised that
weapons could not solve problems. Weapons could only kill and not bring about a change
of heart.
The pen can be used to express personal views or public opinion. It represents the press,
literature and other pieces of writings. The purpose of writing is to connect one’s mind
with another and to persuade the reader to take up the writer’s views.
But the reader is free to hold his own views. He may either agree or disagree with the
writer. Thus, the pen represents peaceful means of propagating ideas.
Great writers and thinkers have inspired the masses, since times immemorial. French
Revolution was boosted by the writings of Rousseau and Voltaire. Lenin, the leader of
Russian Revolution was moved by Karl Marx’s ‘Das Capital.’ India’s newspapers, the Hindu,
Kesari, Amrit Bazar Patrika etc., helped to campaign against the British rule.
On the other hand the victories of the sword are short-lived. Alexander’s desire to conquer
the world remained unfulfilled. Hitler was eventually defeated in the Second World War.
However, the plays and poems of Kalidas, Shakespeare and Wordsworth are still afresh
among readers. The laws and theories of Newton and Darwin, evolved and propelled
scientific knowledge, with their written forms.
Battles are fought for a certain period of time over a particular area. But the teachings of
Buddha, Christ and Gandhi are universal in their appeal. Let us embrace the pen and throw

away all swords and weapons of mass-destruction. This is the surest way of making
brotherhood and humanity prevail in the world. Long live the pen!
Q.2 Make a Précis of the following passage in 150 words and give it a suitable title.
(30 Marks)
It’s taboo but we all think about it. We are told it’s not good to talk or even think about
death.
We are all going to die. Death is a shadow that follows all the time. The recent pandemic
had reminded us that death is always close by, one can face it any time, even the very next
moment, there is nothing to be scared of it, and it is a fate we all will share.
Logically, all of us know that we are going to die but emotionally we feel invincible, and
that is why we waste our time complaining so much, rather than being grateful enough.
It’s all because we don’t have the right perception of death.
If you are going to die tomorrow, what will you do on your last day in this world? Would
you rather waste your time thinking about the future or do something that will give you
deep fulfilment and make your “now” more enjoyable.
Contemplating death puts things into perspective. We are here to experience life. It is just
like a football game. The match starts when we are born, and when the final whistle blows,
it’s all over. There is no point in complaining about the weather, about your teammates
not playing right. All you can do is go out there and do the best you can to score a goal.
Contemplating death makes you understand how precious this present moment is. The
present never comes back. Future is just a concept; it never exists, what exists is now.
Awareness of death makes you feel liberated. Why will you not do something without
thinking about what others might think of you? You are going to die one day. That day, the
things that you are scared of won’t matter. All your problems just won’t matter, so invest
your time in something that makes you happy.
The more you think about the inevitable death the more liberated you will
be. Contemplating death makes you grateful for everything you have, everything you think,
and all the experiences.
Look around for a second, look at the trees, the birds, and the people. There will come a
time when everything that you see now will not exist, so every second spent with it is
precious.

We are all going towards death, then why not say things that you never dared to say,
forgiving the people with whom in the past you had negative experiences, and being
grateful to people who had always been with you and had positively changed your life.
Becoming aware of your mortality is an awakening experience. It might help you in living
your life authentically and entirely, and perhaps for the first time, you will truly be free.
Solution –
CONTEMPLATION OF DEATH
In general, people are afraid to talk or even think about death and feel it as a taboo to do
so, but ultimately, we all are going to die at some point of time in life. Recent pandemic
reminded us that death is like a shadow and it can end at anytime without having a
tomorrow. Logically all of us know that we are going to die but rather than embracing what
we have presently and showing gratitude, we tend to complain every time and always keep
thinking about future. The more one think about inevitable death, the more liberated that
person feels. Death is just like a football game which starts when we are born and end
when we die. Acknowledging the mortality is an experience which might be helpful in
liberating you, to forgive the people with whom you had negative experiences and can
positively change your present life
Q.3 Read the passage and answer the following questions on the basis of the passage in
your own words. (40 Marks)
India's service sector growth continued to strengthen in May, with companies reporting
the quickest increase in business activity since April 2011, a monthly survey showed on
Friday.
The seasonally adjusted S&P Global India Services PMI Business Activity Index rose to 58.9
in May from 57.9 in April, clocking the fastest rate of expansion in over 11 years. A reading
above 50 indicates an overall increase in output.
The upturn was aided by a substantial pick-up in new business growth as demand
continued to recover following the reopening of the economy after Covid-19 lockdowns.
"The reopening of the Indian economy continued to help lift growth in the service sector.
Business activity rose at the quickest pace in over 11 years in May, supported by the fastest
upturn in new orders since July 2011," says Pollyanna De Lima, economics associate
director at S&P Global Market Intelligence.
Inflation outlook, however, worsened as input prices rose at the sharpest pace in the
survey history. Inflation showed no signs of abating as price gauges showed an

unprecedented increase in input costs and the second-fastest upturn in selling charges in
less than five years.
May data marks the twenty-third successive month of rising input prices at Indian service
providers. The rate of inflation climbed to the highest in 16-and-a-half years of data
collection.
Elevated price pressures continued to restrict business optimism. Despite picking up from
April, the overall level of sentiment among service providers was historically subdued, says
Lima.
Services firms reported substantial pressure from food, fuel, input, labour and
transportation costs. But companies continued to transfer rising cost burdens to customers
via upward adjustments to selling prices.
Despite remaining optimistic towards the 12-month outlook for business activity, firms
remained concerned that inflationary pressures would dampen the economic recovery.
The overall level of positive sentiment improved from April, but remained historically low.
There was a further increase in outstanding business among services firms during May.
"The rise was fifth in consecutive months and the fastest in a year, but moderate overall.
Where backlogs expanded, companies associated this with greater new orders," says the
survey.
Still, service providers refrained from taking on additional workers in May. In fact, there
was a renewed but only marginal decline in employment.
The latest results continued to signal subdued global demand for Indian services, with new
business from abroad having now declined in each month since the onset of the Covid-19
pandemic in March 2020.
Consumer services remained the brightest spot of the service economy, posting the
strongest increases in both new business and output during May.
Q 1) Discuss the reasons for spike seen in Service sector growth.
1) The service sector continued since April, 2011 and was aided by growth in business
activity post COVID-19 lock down as demand continued to recover. Although service sector
reported pressures due to food, fuel, input, labor and transportation costs, companies
continued to transfer the rising cost burden to the customers via upward adjustment to
selling prices. Customer service had remained the brightest spot of the service economy,
posting the strongest increase in both new business and output.

Q 2) Discuss the impact of inflation on the public.
2) The input prices were increased due to inflation and it increased the selling prices which
ultimately became higher buying costs to the public. High prices continued to restrict
business optimism and despite remaining optimistic, the businesses had a fear that high
inflation levels could dampen the economy. Sue to inflation and high price rises, there was
also decreased employment (service providers did not take any additional workers). The
global public demand was also subdued due to inflation, a report says.
Q 3) Discuss the steps taken by service firms.
3) The service firms to cope up with the inflation and increased price levels of food, labour,
transportation costs increased the selling prices and shifted the burden of inflation to the
public by making services costlier. The service firms also did not take any additional
workers because then they had to pay additional wages to the new employees. There was
a substantial pickup in the business activity due to rise in demand and the outputs were
very high due to the efficiency.

8/13/23, 11:02 AM Paper 2 - Objective -10:10 AM to 11:10 AM-complete-test
Paper 2 - Objective -10:10 AM to 11:10

AM
Paper 2 - Objective -10:10 AM to 11:10 AM
Q.1) If an offender has been sentenced to imprisonment not exceeding six months, the solitary
confinement_______-.
[A] shall not exceed 15 days
[B] shall not exceed one month
[C] shall not exceed two months
[D] shall not exceed three months
[E] shall not exceed six months
Q.2) When the liability of a person who is one of the parties to the suit depends upon the liability of a stranger
to the suit, then an admission by the stranger in respect of his liability shall be an admission on the part of
that person who is a party to the suit. It has been so provided.
[A] under section 21 of Evidence Act
[B] under section 20 of Evidence Act
[C] under section 19 of Evidence Act
[D] under section 17 of Evidence Act
[E] under section 10 of Evidence Act
Q.3) The investigating police officer in a case has power to require attendance of a person acquainted with the
facts and circumstances of the case, under___________.
[A] section 158 of Cr PC
[B] section 159 of Cr PC
[C] section 160 of Cr PC
[D] section 161 of Cr PC
[E] section 162 of Cr PC
Q.4) The respective forms of the memorandum of a company is a part of which schedule of the Companies
Act, 2013?
[A] Schedule III
[B] Schedule I
[C] Schedule IV
https://edutap.learnyst.com/admin/products/all-questions/417881 1/31
[D] Schedule V
[E] Schedule VII
Q.5) The 2021 Amendment Act has allowed the Regional Director or any other officer not below the rank of a
Regional Director, duly authorised by the Central Government, to compound offences under the LLP Act.
Further, if an offence by an LLP or its partners is compounded, then a similar offence cannot be compounded
for a period of_______.
[A] one year
[B] two years
[C] three years
[D] four years
[E] five years
Q.6) If an offender has been sentenced to imprisonment exceeding one year, the term for solitary
confinement shall not exceed__________.
[A] one month
[B] two month
[C] three month
[D] four month
[E] five month
Q.7) Communication made ‘without prejudice’ are protected.

[A] under section 22 of Evidence Act
[B] under section 23 of Evidence Act
[C] under section 24 of Evidence Act
[D] under section 21 of Evidence Act
[E] under section 25 of Evidence Act
Q.8) Every Bench of SAT constituted under section 15L of the SEBI Act, 1992 shall include at least____________.
[A] One Judicial Member and two Technical Member
[B] Two Judicial Member and two Technical Member
[C] Two Judicial Member and one Technical Member
[D] one Judicial Member and one Technical Membe
[E] Three Judicial Member and one Technical Member
Q.9) Which among the following is not entitled to initiate CIRP?

[A] A corporate debtor in respect of whom a liquidation order has been made.
[B] A corporate debtor not undergoing a corporate insolvency resolution process
[C] a financial creditor not undergoing a pre-packaged insolvency resolution process
[D] An operational creditor not undergoing a pre-packaged insolvency resolution process
[E] None of the above
Q.10) The investigating officer under section 160 of Cr PC cannot require the attendance at a place other than
the place of residence, of____________.
[A] a male who is under the age of 18 years
[B] a male who is under the age of 15 years
[C] woman
[D] Both B and C
Q.11) Confession caused by inducement, threat or promise is contained in________.

[A] section 24 of Evidence Act
[B] section 25 of Evidence Act
[C] section 26 of Evidence Act
[D] section 27 of Evidence Act
[E] section 28 of Evidence Act
Q.12) Which of the following is correct with respect to the amalgamation of companies registered under
section 8 of the Companies Act, 2013?
[A] A company registered under section 8 shall amalgamate only with a public company registered under the
Companies Act, 2013
[B] A company registered under section 8 shall amalgamate only with another company registered under
same section and having similar objects
[C] A company registered under section 8 shall amalgamate only with a private company registered under the
Companies Act, 2013
[D] A company registered under section 8 shall not amalgamate with another company.
Q.13) Which of the following statement is/are correct?

1. Every limited liability partnership shall have a registered office to which all communications and notices
may be addressed and where they shall be received.
2. A limited liability partnership may change the place of its registered office and file the notice of such change
with the Registrar in such form and manner and subject to such conditions as may be prescribed and any
such change shall take effect only upon such filing.
3. A document may be served on a limited liability partnership or a partner or designated partner thereof by
sending it by post under a certificate of posting or by registered post or by any other manner, as may be
prescribed, at the registered office and any other address specifically declared by the limited liability
partnership for the purpose in such form and manner as may be prescribed.
[A] only 1
[B] only 2
[C] 1 and 2
[D] 2 and 3
[E] 1, 2 and 3
Q.14) What is the initiation date in Corporate Insolvency Resolution Process?

[A] The date on which a financial creditor, corporate applicant or operational creditor makes an application to
the Adjudicating Authority for initiating corporate insolvency resolution process.
[B] The date of admission of an application by a financial creditor, corporate applicant or operational creditor
for initiating corporate insolvency resolution process by the Adjudicating Authority
[C] The date on which a financial creditor, corporate applicant or operational creditor realises the insolvent
status of the corporate debtor
[D] The date on which the corporate debtor is unable to pay its debts to the creditors.
Q.15) Under Indian penal code, if the offence is punishable with fine only, the imprisonment in default of
payment of fine shall be____.
[A] Roigorous
[B] Simple
[C] Forfeiture of property
[D] Partly rigorous and partly simple
[E] According to discretion of court
Q.16) A confession made to a police officer is inadmissible under________-.

[A] section 24 of Evidence Act
[B] section 25 of Evidence Act
[C] section 26 of Evidence Act
[D] section 27 of Evidence Act
[E] section 28 of Evidence Act
Q.17) When the person competent to compound an offence under Section 320 CrPC is dead, then:
[A] The offence cannot be compounded
[B] The offence can be compounded by the prosecutor
[C] Legal representative of such person can compound the offence with the consent of the Court
[D] Legal representative of such person can compound the offence without the consent of the Court
[E] The offence can be compounded by the court
Q.18) Section 323 of Indian Penal Code provides - "Punishment for voluntarily causing hurt.—Whoever, except
in the case provided for by section 334, voluntarily causes hurt, shall be punished with imprisonment of either
description for a term which may extend to one year, or with fine which may extend to one thousand rupees,
or with both."
Which of the following statement is correct for the following scenario?
A gives Z fifty strokes with a stick. Court held A is guilty of voluntarily causing hurt to Z.
[A] A might be imprisoned for fifty years
[B] A might be imprisoned for thirty years
[C] A might be imprisoned for twenty years
[D] A is liable only to one punishment for the whole beating.
[E] A is liable to 50 punishments for the whole beating.
Q.19) What does CIN under the Companies Act, 2013, stand for?
[A] Corporate identification number
[B] Corporation identification number
[C] Corporation identity number
[D] Corporate identity number
[E] Corporate identity numeric
Q.20) Which of the following can transfer a Judicial Member or a Technical Member of the Securities Appellate
Tribunal from one Bench to another Bench as per the provisions of section 15L of the SEBI Act, 1992?
[A] President of India
[B] Chairman of the Board
[C] Central Government
[D] Presiding officer of the SAT
Q.21) Which of the following sections of the Indian Evidence Act, 1872 gives provisions regarding proof as to
electronic signatures?
[A] Section 67
[B] Section 67A
[C] Section 67B
[D] Section 67C
[E] Section 67D
Q.22) Which of the following is correct?

I. Delay in dispatch of the FIR is not a circumstance which can throw out the prosecution case in its entirety.
II. Delay in dispatch of the FIR is a circumstance which can throw out the prosecution case in its entirety.
III. The extra-ordinary delay in sending the FIR is a circumstance which provides a legitimate basis for
suspecting that the FIR was recorded much later than the stated date and hour, affording sufficient time to
the prosecution to introduce improvements.
[A] I is true, II & III are false
[B] I & III are true, II is false
[C] II & III are true, I is false
[D] III is true, I & II are false.
[E] All are true
Q.23) The Amendment Act has provided for the establishment of special courts by the Central Government
for speedy adjudication of offences under the LLP Act. It is provided in__________.
[A] Section 67
[B] Section 67A
[C] Section 67B
[D] Section 67C
[E] Section 68A
Q.24) A is sentenced to a fine of one hundred rupees and to four months' imprisonment in default of
payment. Here, if seventy-five rupees of the fine be paid or levied before the expiration of one month of the
imprisonment. As per Section 69 of Indian penal code, A will be discharged:
[A] after completing four months of imprisonment
[B] as soon as the first month has expired
[C] after completing two months of imprisonment
[D] as soon as the three months has expired
[E] According to discretion of court
Q.25) Where the articles contain provisions for entrenchment, the company shall give notice to whom?
[A] Central Government

[B] National Company Law Tribunal
[C] Securities and Exchange Board of India
[D] Registrar
Q.26) What is resolution plan?

[A] A plan proposed by the financial or operational creditor for insolvency resolution of the corporate debtor
as a going concern.
[B] A plan proposed by the Adjudicating Authority creditor for insolvency resolution of the corporate debtor as
a going concern.
[C] A plan proposed by any person for insolvency resolution of the corporate debtor as a going concern.
[D] A plan proposed by the corporate debtor themselves for insolvency resolution of the corporate debtor as
a going concern.
[E] Both A and B
Q.27) As per the section 11AA of the SEBI Act, 1992, any pooling of funds under any scheme or arrangement,
which is not registered with the Board or is not covered under sub-section (3) of section 11AA, involving a
corpus amount of ________________ shall be deemed to be a collective investment scheme.
[A] Two hundred crore rupees or more
[B] Five hundred crore rupees or more
[C] Three hundred crore rupees or more
[D] One hundred crore rupees or more
[E] Six hundred crore rupees or more
Q.28) Section 160 of Cr PC authorises a police officer to_____________.

[A] summon a person as a witness
[B] summon accused
[C] summon a person for the production of documents
[D] summon a person for the production of an article(s)
[E] all of the above
Q.29) How many designated partners are required in LLP?

[A] At least two designated partners
[B] Seven designated partners
[C] Two designated partners
[D] At least seven designated partners

[E] Five designated partners
Q.30) In Indian Penal Code, in the statement "imprisonment for life shall be reckoned as equivalent to", life of
imprisonment is equivalent to-
[A] ten years
[B] fourteen years
[C] fifteen years
[D] twenty years
[E] twenty five years
Q.31) A person can be summoned as a witness under section 160 of Cr PC, by_______________.
[A] any Police Officer
[B] any magistrate
[C] the Station House Officer
[D] an Investigating Officer
[E] Either A or B
Q.32) The Registrar may reserve the name for what period from the date of approval against an application
for the reservation of a name?
[A] 30 days
[B] 45 days
[C] 60 days
[D] 20 days
[E] 90 days
Q.33) Any acquirer who acquires shares or voting rights in a target company which taken together with shares
or voting rights, if any, held by him and by persons acting in concert with him in such target company,
aggregating to ____ per cent or more of the shares of such target company, shall disclose their aggregate
shareholding and voting rights in such target company in such form as may be specified.
[A] 2
[B] 10
[C] 8
[D] 5
[E] 7
Q.34) Who approves the resolution plan?

[A] Insolvency Professional
[B] Adjudicating Authority
[C] Insolvency and Bankruptcy Board of India
[D] Committee of creditors
[E] Both B and D
Q.35) Which of the following shall not be the collective investment scheme as per section 11AA of the SEBI Act,
1992?
[A] Any scheme or arrangement made or offered by any person under which the contributions, or payments
made by the investors, by whatever name called, are pooled and utilized for the purposes of the scheme or
arrangement
[B] Any scheme or arrangement made or offered by any person under which the contributions or payments
are made to such scheme or arrangement by the investors with a view to receive profits, income, produce or
property, whether movable or immovable, from such scheme or arrangement
[C] Any scheme or arrangement made or offered by any person under which the property, contribution or
investment forming part of scheme or arrangement, whether identifiable or not, is managed on behalf of the
investors
[D] Any scheme or arrangement made or offered by any person under which the investors do not have day-
to-day control over the management and operation of the scheme or arrangement
[E] Any scheme or arrangement under which contributions made are in the nature of subscription to a mutual
fund
Q.36) Which of the following statement is incorrect?

[A] In case of imprisonment of more than three months, solitary confinement shall not be for more than
seven days in any one month of the total imprisonment awarded.
[B] solitary confinement is permissible only when an offender has committed such an offence under the Code
which is punishable with rigorous imprisonment.
[C] The maximum period of solitary confinement provided under this section is six months.
[D] Section 71 and 72 of Indian Penal Code deals with solitary confinement and limit of solitary confinement.
[E] Both C and D
Q.37) If the name of a person is changed in case of one person company, then it:
[A] shall be deemed to be an alteration of the memorandum
[B] shall not be deemed to be an alteration of the memorandum
[C] shall not be deemed to be an alteration of the articles
[D] shall be deemed to be an alteration of the articles
Q.38) Consider following statement related to Governing Board of a Depository:

I. The number of public interest directors shall not be lesser than the number of shareholder directors in the
governing board of Depository
II. The casting vote in the meetings of the governing board of the depository shall be with the chairperson of
the governing board
III. No depository participant or their associates and agents, irrespective of the depository of which they are
members, shall be on the governing board of a depository
Choose the incorrect option using the code given below:
[A] I only
[B] I and II only
[C] I and III only
[D] II and III only
Q.39) Every person, who together with persons acting in concert with him, holds shares or voting rights
entitling him to exercise twenty-five per cent or more of the voting rights in a target company, shall disclose
their aggregate shareholding and voting rights as of the thirty-first day of March, in such target company in
such form as may be specified.
The disclosures required shall be made within _______ working days from the end of each financial year to, —
(a) every stock exchange where the shares of the target company are listed; and
(b) the target company at its registered office
[A] 2
[B] 5
[C] 7
[D] 10
[E] 15
Q.40) What is the voting requirement for approval of resolution plan by creditors?
[A] 85 percent of voting shares
[B] 75 percent of voting shares
[C] 50 percent of voting shares
[D] 66 percent of voting shares
[E] 90 percent of voting shares
Q.41) In the case of an indirect acquisition where, the proportionate net asset value of the target company as
a percentage of the consolidated net asset value of the entity or business being acquired is in excess of ______
per cent, on the basis of the most recent audited annual financial statements, such indirect acquisition shall
be regarded as a direct acquisition of the target company for all purposes of these regulations including
without limitation, the obligations relating to timing, pricing and other compliance requirements for the open
offer
[A] 51
[B] 50
[C] 26
[D] 76
[E] 80
Q.42) In Indian Penal Code, in the statement "In every case in which sentence of death shall have been
passed, the appropriate Government may, without the consent of the offender, commute the punishment for
any other punishment provided by this Code", the appropriate government means_____.
[A] Central Government, in cases where the sentence is a sentence of death or is for an offence against any
law relating to a matter to which the executive power of the Union extends
[B] State Government, in cases where the sentence (whether of death or not) is for an offence against any law
relating to a matter to which the executive power of the State extends
[C] In cases where the sentence (whether of death or not) is for an offence against any law relating to a matter
to which the executive power of the State extends, the Government of the State within which the offender is
sentenced.
[D] Only A
[E] Both A and C
Q.43) Memorandum of a company can be altered by________.

[A] Ordinary resolution
[B] Special resolution
[C] The agreement of all the members of the company
[D] Resolution requiring special notice
[E] Board resolution only
Q.44) Conditions of appointment of Public Interest Directors are carefully formulated. Which one is incorrect
in this context?
[A] Term is 3 years which can be extended for a period of another 3 years subject to approval by the
governing board of depository
[B] Public interest director can be appointed as Public interest director in any other Depository, Stock
Exchange or Clearing Corporation post the expiry of the term(s) only after a cooling-off period of one year
[C] Maximum of three terms across a depository / a recognized stock exchange / a recognized clearing
corporation, subject to a maximum age limit of seventy five years
[D] A public interest director on the board of a depository shall not act simultaneously as member on more
than five committees of that depository
Q.45) Who constitutes the committee of creditors?

[A] Insolvency professional
[B] Financial or operational creditor
[C] Only Financial creditors
[D] Interim resolution professional
[E] Adjudicating Authority
Q.46) Which of the following statement is incorrect about the Construction of reference to transportation as
per Section 53A of the Indian Penal Code?
[A] In every case in which a sentence of transportation for a term has been passed before the commencement
of the Code of Criminal Procedure (Amendment) Act,1955, the offender shall be dealt with in the same
manner as if sentenced to simple imprisonment for the same term.
[B] any reference to "transportation for life" in any other law for the time being in force or in any instrument
or order having effect by virtue of any such law or of any enactment repealed shall be construed as a
reference to "imprisonment for life".
[C] Any reference to transportation for a term or to transportation for any shorter term (by whatever name
called) in any other law for the time being in force shall be deemed to have been omitted.
[D] Any reference to "transportation" in any other law for the time being in force shall, if the expression
means transportation for life, be construed as a reference to imprisonment for life.
[E] Any reference to "transportation" in any other law for the time being in force shall, if the expression means
transportation for any shorter term, be deemed to have been omitted.
Q.47) In the opinion of the Central Government, the name of Prakash Limited, a public company, is identical
to the name by which a company in existence had been previously registered under the Companies Act, 2013.
It directed the company to change its name and the company has to change its name within what period?
[A] Within a period of 1 month from the issue of such direction
[B] Within a period of 6 months from the issue of such direction
[C] Within a period of 3 months from the issue of such direction
[D] Within a period of 15 days from the issue of such direction
[E] Within a period of 21 days from the issue of such direction
Q.48) Insider trading is a civil/criminal offence depending upon the situation. Which of the following is an
example of Insider Trading as per Prohibition of Insider Trading Regulations, 2015?
[A] Your company starts supplying parts for a customer's secret major product, so you buy the client's stock.
[B] You dump a company's shares after your broker confidentially tells you the CEO at that company just sold
stock, but the sale has not yet been publicly reported
[C] You sell your company's stock because you know it is about to announce poor earnings
[D] A, B & C
[E] A & C
Q.49) The party to appeal can obtain copies of folio of the records or part thereof of a pending appeal on
payment of a fee of Rs. _____ per folio not involving typing and a fee of rupees ___________ for a folio or part
thereof involving typing of statement.
[A] 2,5
[B] 5,10
[C] 5,20
[D] 5,25
[E] 10,25
Q.50) The resolution professional shall give notice of each meeting of the committee of creditors to:
[A] Only the members of committee of creditors
[B] Members of the committee of creditors, operational creditors in case their aggregate dues is not less than
ten percent of debt and special invitees.
[C] Members of committee of creditors, members of suspended Board of Directors and operational creditors
in case their aggregate dues is not less than ten percent of debt.
[D] Members of the committee of creditors and special invitees
[E] All the financial and operational creditors
Q.51) Which of the following section of Indian Penal code provides that imprisonment which is imposed in
default of payment of a fine shall terminate whenever that fine is either paid or levied by process of law?
[A] Section 66
[B] Section 67
[C] Section 68
[D] Section 69
[E] Section 70
Q.52) Application related to the change of place of the registered office from one State to another shall be
disposed by the Central Government within what period?
[A] 60 days
[B] 30 days
[C] 90 days
[D] 120 days
[E] 15 days
Q.53) Unpublished Price Sensitive Information (UPSI) is “anything” which have the potential to impact profits
of the company or sentiments of security market, in totality. What according to your knowledge should fall
under UPSI?
[A] Dividends
[B] Changes in Key Managerial Position
[C] Financial results
[D] Change in capital structure
[E] All of the above
Q.54) Regulation 4 of Prohibition of Fraudulent and Unfair Trade Practices Regulations, 2003 gives certain
examples of prohibited fraudulent dealings for Intermediaries in security market. Identify correct example/s
of fraudulent dealings?
[A] An intermediary promising a certain price in respect of buying or selling of a security to a client and waiting
till a discrepancy arises in the price of such security and retaining the difference in prices as profit for himself
[B] An intermediary providing his clients with such information relating to a security as can be verified by the
clients before their dealing in such security
[C] An intermediary reporting trading transactions to his clients entered into on their behalf in an informed
manner in order to justify his commission and brokerage
[D] An intermediary not disclosing to his client transactions entered into on his friend behalf including taking
an option position
[E] ALL
Q.55) A depository participant seeking registration need to apply to Depository, what application fee it needs
to Pay?
[A] Rs 1500
[B] Rs 15000
[C] Rs 150000
[D] Rs 100000
[E] Rs 200000
Q.56) In the opinion of the Central Government, the name of the Prakash Limited, a public company, is
identical with the name by which a company in existence had been previously registered under the
Companies Act, 2013. It directed the company to change its name and the company has to change its name.
Which resolution has to be adopted for this purpose?
[A] Special resolution
[B] Resolution by special notice
[C] Ordinary resolution
[D] Board resolution only
[E] No resolution required
Q.57) What is the minimum period of show cause notice to be issue upon a person on whom inquiry is
initiated under Section 15A,15B,15C?
[A] 7 days
[B] 10 days
[C] 14 days
[D] 15 days
[E] 30 days
Q.58) Disclosure about holding of securities by director, person at Key Managerial Position and promoter to
the company should be made within what days of his appointment.
[A] 30 days
[B] 15 days
[C] 10 days
[D] 7 days
[E] 60 days
Q.59) In settlement of administrative and civil proceedings under section 15JB of the SEBI Act, 1992, which of
the following factor is not considered by the Board before agreeing to the proposal of settlement?
[A] Nature of default
[B] Gravity of default
[C] Impacts of default
[D] Quantum of default
Q.60) A recognised stock exchange may, with the prior approval of the Securities and Exchange Board of India,
transfer the duties and functions of a clearing house to a clearing corporation for which of the following
purposes?
[A] the delivery of securities
[B] the periodical settlement of contracts and differences thereunder
[C] Payment for securities
[D] A & C
[E] A, B and C
Q.61) If a person decide to opt out in respect of his Security held in Depository in DEMAT form, and make a
request to issue Physical Security Certificate, instead; then, what are the steps through which this process will
traverse?
1.Every issuer shall, within thirty days of the receipt of intimation from the depository issue the certificate of
securities to the beneficial owner
2.The beneficial owner will inform the depository about his decision
3. The depository shall on receipt of intimation make appropriate entries in its records and shall inform the
issuer
[A] 1-2-3
[B] 2-1-3
[C] 2-3-1
[D] 2-3 only
[E] 1-2 only
Q.62) Guarantee of Settlement of trades is responsibility of whom?

[A] SEBI
[B] Clearing Corporation
[C] Stock Exchange
[D] All of the above
[E] A and C only
Q.63) Under Section 10 of Securities Contract (Regulation) Act, 1956, Securities and Exchange Board of India
has Powers to make or amend bye-laws of recognised stock exchange. Consider following statements in this
context:
I. SEBI can make or amend by-laws on its own or on the request of the Stock Exchange and they must be
published in the Official Gazette of India
II. If stock exchange is unhappy with the by-laws made by SEBI, it may apply to SAT for revision with in 2
months of them being published
III. SAT after giving opportunity to Stock exchange to be heard can accept or reject the changes
Choose the correct statement (s)?
[A] I only
[B] I and III only
[C] II and III only
[D] I and II only
Q.64) Yashee is a medical practitioner, and has a very busy schedule. Still, she follows her passion to trade in
security market. And she does trade by herself using an Online Brokerage Platform and DEMAT account. One
day she was going through the details of her DEMAT accounts, and found that almost all of her securities are
missing from the records. She was appalled for a while, and after collecting herself called her friend Yash do
discuss the issue...
If loss is caused by Depository's negligence, what relief Yashee may get?

[A] Stock Exchange inquire this issue
[B] Yashee will get full compensation
[C] Depository will recover the securities from DEMAT account provider
[D] Depository is not liable
Q.65) Derivative is a very important financial instruments which enables investor to trade in various manner
as per his suiting. Which section of Securities Contract (Regulation) Act, 1956 talks about Contracts in
derivative?
[A] Section 16 A
[B] Section 14 A
[C] Section 17 A
[D] Section 18 A
[E] Section 21A
Q.66) Which of the following can acquire up to 15% shareholdings in a Clearing Corporation?
[A] A foreign depository
[B] A foreign bilateral or multilateral financial institution approved by the Central Government
[C] A foreign stock exchange
[D] An insurance company
Q.67) Under which section of Depositories Act, 1996, SEBI Board has power to call for information from OR
make an inquiry against Depository, Participant or Beneficial Owner?
[A] Section 16
[B] Section 17
[C] Section 18
[D] Section 19
[E] Section 15
Q.68) Who cannot hold any shareholding in the Stock Exchange?

[A] Another Stock Exchange
[B] Clearing Corporation
[C] Depository
[D] Insurance Company
Q.69) Under section 19 of Depositories Act, 1996, SEBI Board has power to give directions to Depository,
Participant or Beneficial Owner, in certain cases. Which of the following belong/s to such direction/s?
[A] Direction made to disgorge an amount equivalent to profit made or loss avoided by wrongful means
[B] Funds that were received through illegal or unethical business transactions are disgorged, or paid back,
with interest to those affected by the action
[C] Directions as may be appropriate in the interest of investors or the securities market
[D] A and C only
Q.70) Conditions for listing is mentioned in which section of the Securities Contracts (Regulation) Act, 1956?
[A] Section 21A
[B] Section 21
[C] Section 22
[D] Section 22A
[E] Section 22B

AM
Answers
Q.1)B Q.2)C Q.3)C Q.4)B Q.5)C Q.6)C Q.7)B Q.8)D Q.9)A Q.10)D Q.11)A Q.12)B
Q.13)E Q.14)A Q.15)B Q.16)B Q.17)C Q.18)D Q.19)D Q.20)D Q.21)B Q.22)B Q.23)B
Q.24)B Q.25)D Q.26)C Q.27)D Q.28)A Q.29)A Q.30)D Q.31)D Q.32)D Q.33)D Q.34)A
Q.35)E Q.36)E Q.37)B Q.38)E Q.39)C Q.40)D Q.41)E Q.42)E Q.43)B Q.44)A Q.45)D
Q.46)A Q.47)C Q.48)D Q.49)B Q.50)C Q.51)C Q.52)A Q.53)E Q.54)A Q.55)B Q.56)C
Q.57)C Q.58)D Q.59)D Q.60)E Q.61)C Q.62)B Q.63)A Q.64)B Q.65)D Q.66)E Q.67)C
Q.68)B Q.69)E Q.70)B

AM
Explanations
Q.1) Explanation:
Section 73 deals with solitary confinement, which states that it is permissible only when an offender has
committed such an offence under the Code which is punishable with rigorous imprisonment.
The period of solitary confinement must follow the scale provided in this section. Consequently, in cases of
imprisonment not exceeding six months solitary confinement shall not exceed one month.
Q.2) Explanation:
Section 19 in The Indian Evidence Act, 1872
19. Admissions by persons whose position must be proved as against party to suit.—Statements made by
persons whose position or liability, it is necessary to prove as against any party to the suit, are admissions, if
such statements would be relevant as against such persons in relation to such position or liability in a suit
brought by or against them, and if they are made whilst the person making them occupies such position or is
subject to such liability.
Q.3) Explanation:
Police officer’s power to require attendance of witnesses is laid down in section 160. In course of crime
investigation, the police may secure the attendance of persons who can supply necessary information
regarding the commission of the offence. The investigating officer should issue written order addressed to the
person whose presence is sought specifying date, time and place where he has to appear for interrogation.
Q.4) Explanation:
As per section 4(6) of the Companies act, 2013, the memorandum of a company shall be in respective forms
specified in Tables A, B, C, D and E in Schedule I as may be applicable to such company.
Q.5) Explanation:
The Amendment Act has allowed the Regional Director or any other officer not below the rank of a Regional
Director, duly authorised by the Central Government, to compound offences under the LLP Act. Further, if an
offence by an LLP or its partners is compounded, then a similar offence cannot be compounded for a period
of 3 (three) years. It has also been clarified that any second or subsequent offence, shall be deemed to be a
first offence if that offence has been committed after the expiry of 3 (three) years from date on which it was
previously compounded.
Q.6) Explanation:
Section 73 deals with solitary confinement, which states that it is permissible only when an offender has
committed such an offence under the Code which is punishable with rigorous imprisonment. In cases of
imprisonment exceeding one year solitary confinement shall not exceed three months.
Q.7) Explanation:
Section 23 of the Act protects communication made 'without prejudice. ' Confidential overtures of pacification
between litigants made without prejudice are excluded on grounds of public policy. It has been held that
Section 23 does not protect all letters, merely because they are headed with the words “without prejudice”.
Q.8) Explanation:
As per the provisions of section 15L of the SEBI Act, 1992, subject to the provisions of this Act,—
(a) the jurisdiction of the Securities Appellate Tribunal may be exercised by Benches thereof;
(b) a Bench may be constituted of the Securities Appellate Tribunal with two or more Judicial or Technical
Members as he may deem fit:
Provided that every Bench constituted shall include at least one Judicial Member and one Technical Member;
Q.9) Explanation:
Section 11 states that the following persons shall not be entitled to make an application to initiate corporate
insolvency resolution process under this Chapter, namely:—
(a) a corporate debtor undergoing a corporate insolvency resolution process or or a pre-packaged insolvency
resolution process; or
(aa) a financial creditor or an operational creditor of a corporate debtor undergoing a pre-packaged
insolvency resolution process; or
(b) a corporate debtor having completed corporate insolvency resolution process twelve months preceding
the date of making of the application; or
(ba) a corporate debtor in respect of whom a resolution plan has been approved under Chapter III-A, twelve
months preceding the date of making of the application; or
(c) a corporate debtor or a financial creditor who has violated any of the terms of resolution plan which was
approved twelve months before the date of making of an application under this Chapter; or
(d) a corporate debtor in respect of whom a liquidation order has been made.
Q.10) Explanation:
In course of crime investigation, the police may secure the attendance of persons who can supply necessary
information regarding the commission of the offence. The investigating officer should issue written order
addressed to the person whose presence is sought specifying date, time and place where he has to appear for
interrogation. But a male under the age of fifteen years or a woman cannot be required to attend at any place
other than the place where he or she resides.
Q.11) Explanation:
Section 24 in The Indian Evidence Act, 1872. 24. Confession caused by inducement, threat or promise, when
irrelevant in criminal proceeding.
Q.12) Explanation:
As per section 8(10) of the Companies Act, 2013, A company registered under this section shall amalgamate
only with another company registered under this section and having similar objects.
Q.13) Explanation:
Section 13 provides for Registered office of limited liability partnership and change therein. All the three
statements are correct.
Q.14) Explanation:
When an application for initiating corporate insolvency resolution process is filed against a corporate debtor
before the Adjudicating Authority when a default has occurred. It is said to be the initiation date of CIRP.
Q.15) Explanation:
Section 67 provides that if the offence is punishable with fine only, the imprisonment in default of payment of
fine shall be simple.
Q.16) Explanation:
Section 25 of the Indian Evidence Act, 1872 provides for inadmissibility of confession made to a police officer.
It says that 'no confession made to a police officer can be proved as against the accused.
Q.17) Explanation:
Section 320(4) states that when the person who was otherwise competent to compound an offence under
Section 320 is dead, the legal representative of such person may, with the consent of the Court, compound
such offence.
Q.18) Explanation:
Above question is one of the illustration provided in Section 71 of Indian Penal Code, which talks about Limit
of punishment of offence made up of several offences.
Here A may have committed the offence of voluntarily causing hurt to Z by the whole beating, and also by
each of the blows which make up the whole beating. If A were liable to punishment for every blow, he might
be imprisoned for fifty years, one for each blow. But he is liable only to one punishment for the whole beating.
Q.19) Explanation:
CIN stands for corporate identity number.
Q.20) Explanation:
As per section 15L of the SEBI Act, 1992, the Presiding Officer of SAT may transfer a Judicial Member or a
Technical Member of the Securities Appellate Tribunal from one Bench to another Bench.
Q.21) Explanation:
Section 67A in Indian Evidence Act 1872
Title: Proof as to electronic signature
Description: 67A - Proof as to electronic signature -- Except in the case of a secure electronic signature, if the
electronic signature of any subscriber is alleged to have been affixed to an electronic record the fact that such
electronic signature is the electronic signature of the subscriber must be proved.
Q.22) Explanation:
Mere delay in forwarding FIR to the magistrate is not a ground to acquit an accused. There should not be
“unexplained” and “inordinate” delay in dispatching the first information report to the Magistrate.
Delay in sending report often gives reason for suspicion of FIR, as delay provides enough time to the
prosecution to alter the FIR, thus to ensure that there is just and proper investigation, it is said that it is
important to send the report to magistrate immediately.
However, it should be noted that a delay in sending the FIR does not affect the credibility of the prosecution
story but a delay in filing FIR does deteriorate the case of the prosecution. If the FIR is timely filed and the
investigation has been started based on the FIR, even if the report is lately sent, it causes harm to none and
there is fair investigation.
Q.23) Explanation:
Section 67A states that the Central Government may, for the purpose of providing speedy trial of offences
under this Act, by notification, establish or designate as many Special Courts as may be necessary for such
area or areas, as may be specified in the notification.
Q.24) Explanation:
Section 69 provide for Termination of Imprisonment on Payment of Proportional Part of Fine. If, before the
expiration of the term of imprisonment fixed in default of payment, such a proportion of the fine be paid or
levied that the term of imprisonment suffered in default of payment is not less than proportional to the part
of the fine still unpaid, the imprisonment shall terminate.
Q.25) Explanation:
As per section 5 of the Companies Act, 2013, where the articles contain provisions for entrenchment, whether
made on formation or by amendment, the company shall give notice to the Registrar of such provisions in
such form and manner as may be prescribed
Q.26) Explanation:
Section 5(26) states that "resolution plan" means a plan proposed by any person for insolvency resolution of
the corporate debtor as a going concern in accordance with Part II.
Q.27) Explanation:
As per the section 11AA of the SEBI Act, 1992, any pooling of funds under any scheme or arrangement, which
is not registered with the Board or is not covered under sub-section (3) of section 11AA, involving a corpus
amount of one hundred crore rupees or more shall be deemed to be a collective investment scheme.
Q.28) Explanation:
Section 160 empowers a police officer to summon a person as a witness. Police can issue summon to such
person, who can supply necessary information regarding the commission of the offence. The investigating
officer issues written order addressed to the person whose presence is sought specifying date, time and place
where he has to appear for interrogation.
Q.29) Explanation:
Section 7 states that every limited liability partnership shall have at least two designated partners who are
individuals and at least one of them shall be a resident in India.
Q.30) Explanation:
Section 57 does not state that the span of life imprisonment shall be an imprisonment for twenty years. This
section comes into play only when fractions of terms of punishment are to be calculated. Such shall be the
case, for instance, under sections 116, 119, 120 and 511 of the Code.
Q.31) Explanation:
Only the investigating officer of a case is empowered to summon a person as a witness under section 160 of
Cr PC.
Q.32) Explanation:
As per clause (4) of section 4 of the Companies Act, 2013, a person may make an application to the Registrar
for the reservation of a name set out in the application as—
(a) the name of the proposed company; or
(b) the name to which the company proposes to change its name.
As per clause (5) of section 4, upon receipt of an application under sub-section (4), the Registrar may, on the
basis of information and documents furnished along with the application, reserve the name for a period of
twenty days from the date of approval or such other period as may be prescribed:
Q.33) Explanation:
Regulation 29 - Any acquirer who acquires shares or voting rights in a target company which taken together
with shares or voting rights, if any, held by him and by persons acting in concert with him in such target
company, aggregating to five per cent or more of the shares of such target company, shall disclose their
aggregate shareholding and voting rights in such target company in such form as may be specified:
Provided that in case of listed entity which has listed its specified securities on Innovators Growth Platform,
any reference to “five per cent” shall be read as “ten per cent”
Q.34) Explanation:
Section 30 provides for submision of resolution plan to COC. The resolution professional shall present to the
committee of creditors for its approval such resolution plans which confirm the conditions referred to in sub-
section (2).
Section 31 provides if the Adjudicating Authority is satisfied that the resolution plan as approved by the
committee of creditors under sub-section (4) of section 30 meets the requirements as referred to in sub-
section (2) of section 30, it shall by order approve the resolution plan which shall be binding on the corporate
debtor and its employees, members, creditors, [including the Central Government, any State Government or
any local authority to whom a debt in respect of the payment of dues arising under any law for the time being
in force, such as authorities to whom statutory dues are owed,] guarantors and other stakeholders involved in
the resolution plan
Q.35) Explanation:
Any scheme or arrangement under which contributions made are in the nature of subscription to a mutual
fund shall not be a collective investment schemes.
Q.36) Explanation:
As per section 73 of Indian Penal Code, the maximum period of solitary confinement provided is three
months.
Section 73 signifies solitary confinement and Section 74 provides limit of solitary confinement.
Q.37) Explanation:
According to the proviso of section 3 of the Companies Act, 2013, any change in the name of the person shall
not be deemed to be an alteration of the memorandum.
Q.38) Explanation:
All statements are correct.
I. The number of public interest directors shall not be lesser than the number of shareholder directors in the
governing board of Depository
II. The casting vote in the meetings of the governing board of the depository shall be with the chairperson of
the governing board
III. No depository participant or their associates and agents, irrespective of the depository of which they are
members, shall be on the governing board of a depository
Q.39) Explanation:
Regulation 30 - Every person, who together with persons acting in concert with him, holds shares or voting
rights entitling him to exercise twenty-five per cent or more of the voting rights in a target company, shall
disclose their aggregate shareholding and voting rights as of the thirty-first day of March, in such target
company in such form as may be specified.
The disclosures required shall be made within 7 working days from the end of each financial year to, —
(a) every stock exchange where the shares of the target company are listed; and
(b) the target company at its registered office
Q.40) Explanation:
Section 30(4) - The committee of creditors may approve a resolution plan by a vote of not less than sixty-six
per cent. of voting share of the financial creditors, after considering its feasibility and viability, the manner of
distribution proposed, which may take into account the order of priority amongst creditors as laid down in
sub-section (1) of section 53, including the priority and value of the security interest of a secured creditor and
such other requirements as may be specified by the Board:
Q.41) Explanation:
Regulation 5 - In the case of an indirect acquisition where, the proportionate net asset value of the target
company as a percentage of the consolidated net asset value of the entity or business being acquired is in
excess of 80 per cent, on the basis of the most recent audited annual financial statements, such indirect
acquisition shall be regarded as a direct acquisition of the target company for all purposes of these
regulations including without limitation, the obligations relating to timing, pricing and other compliance
requirements for the open offer
Q.42) Explanation:
Section 55A of IPC defines the word "appropriate government" mentioned in Section 54 and 55. “Appropriate
Government” means:
(i) in cases where the sentence is a sentence of death or is for an offence against any law relating to a matter
to which the executive power of the Union extends, the Central Government; and
(ii) in cases where the sentence (whether of death or not) is for an offence against any law relating to a matter
to which the executive power of the State extends, the Government of the State within which the offender is
sentenced.
Q.43) Explanation:
According to section 13 of the Companies Act, 2013, a company may, by a special resolution and after
complying with the procedure specified in this section, alter the provisions of its memorandum.
Q.44) Explanation:
As per the Regulation 25 of the Securities and Exchange Board of India (Depositories and Participants)
Regulations, 2018, term is 3 years which can be extended for a period of another 3 years subject to approval
by the SEBI, not the governing board.
Q.45) Explanation:
Section 21 provides that the interim resolution professional shall after collation of all claims received against
the corporate debtor and determination of the financial position of the corporate debtor, constitute a
committee of creditors.
Q.46) Explanation:
All the options are provided in Section 53A.
Option A is incorrect, as the correct sub-clause in section is -In every case in which a sentence of
transportation for a term has been passed before the commencement of the Code of Criminal Procedure
(Amendment) Act,1955, the offender shall be dealt with in the same manner as if sentenced to rigorous
imprisonment for the same term.
Q.47) Explanation:
According to section 16 of the Companies Act, 2013, (1) If, through inadvertence or otherwise, a company on
its first registration or on its registration by a new name, is registered by a name which in the opinion of the
Central Government, is identical with or too nearly resembles the name by which a company in existence had
been previously registered, whether under this Act or any previous company law, it may direct the company
to change its name and the company shall change its name or new name, as the case may be, within a period
of three months from the issue of such direction.
Q.48) Explanation:
All are example of Insider Trading
Q.49) Explanation:
A fee of rupees five for a folio or part thereof not involving typing and a fee of rupees ten for a folio or part
thereof involving typing of statement and figures shall be charged for providing copies of the records of an
appeal, to a party thereto
Q.50) Explanation:
Section 24(3) states that the resolution professional shall give notice of each meeting of the committee of
creditors to—
(a) members of Committee of creditors;
(b) members of the suspended Board of Directors or the partners of the corporate persons, as the case may
be;
(c) operational creditors or their representatives if the amount of their aggregate dues is not less than ten per
cent. of the debt.
Q.51) Explanation:
Section 68 provides for the termination of imprisonment which was imposed in default of payment of fine
when fine is paid or is levied by process of law.
Q.52) Explanation:
According to section 13(5) of the Companies Act, 2013, application related to the change of place of the
registered office from one State to another shall be disposed by the Central Government within within a
period of sixty days and before passing its order may satisfy itself that the alteration has the consent of the
creditors, debenture-holders and other persons concerned with the company or that the sufficient provision
has been made by the company either for the due discharge of all its debts and obligations or that adequate
security has been provided for such discharge.
Q.53) Explanation:
Following is a list of examples of UPSI (There can be many others also)

Financial results
Dividends
Change in capital structure
Mergers, De-mergers, Acquisitions
Delisting's
Disposals and Expansion of business
Changes in Key Managerial Position
Material Events of Significance
Q.54) Explanation:
Read all option carefully. Only A is fraudulent dealing. Rest all are normal.
Example of prohibited fraudulent dealings for Intermediaries in security market includes:
An intermediary promising a certain price in respect of buying or selling of asecurity to a client and waiting till
a discrepancy arises in the price of such securityand retaining the difference in prices as profit for himselfAn
intermediary providing his clients with such information relating to a securityas cannot be verified by the
clients before their dealing in such security
An intermediary reporting trading transactions to his clients entered into on their behalf in an inflated
manner in order to increase his commission and brokerage
An intermediary not disclosing to his client transactions entered into on his behalf including taking an option
position
Q.55) Explanation:
According to Part A of the Second Schedule of the Securities and Exchange Board of India (Depositories and
Participants) Regulations, 2018, application fees payable by a participant is Rs. 15000.
Q.56) Explanation:
According to section 16 of the Companies Act, 2013, (1) If, through inadvertence or otherwise, a company on
its first registration or on its registration by a new name, is registered by a name which in the opinion of the
Central Government, is identical with or too nearly resembles the name by which a company in existence had
been previously registered, whether under this Act or any previous company law, it may direct the company
to change its name and the company shall change its name or new name, as the case may be, within a period
of three months from the issue of such direction, after adopting an ordinary resolution for the purpose
Q.57) Explanation:
In holding an inquiry for the purpose of adjudging under sections 15A, 15B, 15C. 15D, 15E, 6[15EA, 15EB,] 15F,
UG ’[, 15HA and 15HB} whether any person has committed contraventions as specified in any of sections UA,
15B, 15C, 15D, 15E. 8 [15 E.4, 15EB,] 15F, 15G,the Board or the adjudicating officer shall, in the first instance,
issue a notice to such person requiring him to show cause within such period as may be specified in the
notice (being not less than fourteen days from the date of service thereof) why an inquiry should not be held
against him
Q.58) Explanation:
As per regulation 7(2) of SEBI (PROHIBITION OF INSIDER TRADING) REGULATIONS, 2015 every person on
appointment as person at Key Managerial Position KMP or a director of the company or upon becoming a
promoter shall disclose his holding of securities of the company as on the date of appointment or becoming a
promoter, to the company within seven days of such appointment or becoming a promoter.
Q.59) Explanation:
As per the section 15JB of the SEBI Act, 1992, the Board may, after taking into consideration the nature, gravity
and impact of defaults, agree to the proposal for settlement, on payment of such sum by the defaulter or on
such other terms as may be determined by the Board in accordance with the regulations made under this Act.
Q.60) Explanation:
As per section 8A of the Securities Contracts (Regulation) Act, 1956, A recognised stock exchange may, with
the prior approval of the Securities and Exchange Board of India, transfer the duties and functions of a
clearing house to a clearing corporation for which of the following purposes -
1. The periodical settlement of contracts and differences thereunder
2. The delivery of, and payment for, securities
3. Any other matter incidental to, or connected with, such transfer
Q.61) Explanation:
2.The beneficial owner will inform the depository about his decision
3. Accordingly, the depository shall on receipt of intimation make appropriate entries in its records and shall
inform the issuer
1.Every issuer shall, within thirty days of the receipt of intimation from the depository issue the certificate of
securities to the beneficial owner
Q.62) Explanation:
B. Guarantee of settlement of trade is the responsibility of the Clearing Corporation
Q.63) Explanation:
Under Section 10 of Securities Contract (Regulation) Act, 1956, Securities and Exchange Board of India has
Powers to make or amend bye-laws of recognised stock exchange.
I. SEBI can make or amend by-laws on its own or on the request of the Stock Exchange and they must be
published in the Official Gazette of India and also in the Official Gazette of the State in
which the principal office of the recognised stock exchange is situate
II. If stock exchange is unhappy with the by-laws made by SEBI may apply to SEBI for revision with in 2 months
of them being published in the Official Gazette of SEBI
III. SEBI after giving opportunity to Stock exchange to be heard can accept or reject the changes
Q.64) Explanation:
Any loss caused to the beneficial owner due to the negligence of the depository, the depository shall
indemnify such beneficial owner.
Q.65) Explanation:
Section 18 A of the Securities Contract (Regulation) Act, 1956 provides for Contracts in derivative. It states that
Contracts in derivative shall be legal and valid if such contracts are:
I. Traded on a recognized stock exchange
II. Settled on the clearing house of the recognized Stock Exchange
Q.66) Explanation:
F. Regulation 18 - Securities Contract (Regulation) (Stock Exchanges and Clearing Corporation) Regulations,
2018
Foreign entity also have been given exception to hold upto 15% SHAREHOLDINGS in Clearing Corporation,
namely:
A Foreign stock exchange
A Foreign depository
A Foreign banking company
A Foreign insurance company
A Foreign Commodity Derivative Exchange
A foriegn bilateral or multilateral financial institution approved by the Central Government
Can Acquire up to 15% of paid up equity share capital either individual or together withpersons acting in
concert with him
Q.67) Explanation:
Section 18- Depository Act, 1996 - Power of Board to call for information and enquiry -
The Board, on being satisfied that it is necessary in the public interest or in the interest of investors so to do,
may, by order in writing,—
(a) call upon any issuer, depository, participant or beneficial owner to furnish in writing such information
relating to the securities held in a depository as it may require; or
(b) authorise any person to make an enquiry or inspection in relation to the affairs of the issuer, beneficial
owner, depository or participant, who shall submit a report of such enquiry or inspection to it within such
period as may be specified in the order
Q.68) Explanation:
B. Clearing Corporation cannot hold any shares of the Stock Exchange
Q.69) Explanation:
Section 19 - Power of Board to give directions in certain cases.— Save as provided in this Act, if after making
or causing to be made an enquiry or inspection, the Board is satisfied that it is necessary—
(i) in the interest of investors, or orderly development of securities market; or
(ii) to prevent the affairs of any depository or participant being conducted in the manner detrimental to the
interests of investors or securities market,
it may issue such directions—
(a) to any depository or participant or any person associated with the securities market; or
(b) to any issuer, as may be appropriate in the interest of investors or the securities market.
[Explanation.—For the removal of doubts, it is hereby declared that power to issue directions under this
section shall include and always be deemed to have been included the power to direct any person,
who made profit or averted loss by indulging in any transaction or activity in contravention of the provisions
of this Act or regulations made thereunder, to disgorge an amount equivalent to the wrongful
gain made or loss averted by such contravention.]
Q.70) Explanation:
Section 21 of Securities Contracts (Regulation) Act, 1956 deals with the conditions for listing.
All India Mock Test
Paper 2 Phase 2
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Q.1) Explain the concept of "Intoxication" as a defence under Chapter IV of the Indian Penal
Code. How does voluntary and involuntary intoxication affect criminal liability? Provide
relevant case examples to illustrate your answer.
[Marks: 10, Difficulty Level: Moderate]
Answer
The concept of "Intoxication" is addressed under Chapter IV of the Indian Penal Code (IPC) as a
general exception. Section 85 and Section 86 of the IPC outline the principles regarding
intoxication and its impact on criminal liability.
Voluntary intoxication
It refers to the situation where an individual willingly consumes substances such as alcohol or
drugs that impair their mental faculties. According to Section 85 of the IPC, a person who
commits an offense while voluntarily intoxicated is generally held liable for their actions.
Intoxication is not a defence if the person, even while intoxicated, possesses the necessary
intention to commit the crime.
For instance, if A consumes a significant amount of alcohol and then assaults B, A cannot use the
defence of intoxication if he had the intention to harm B and carried out the act purposefully.
Involuntary intoxication
Involuntary intoxication, as described in Section 86 of the IPC, occurs when a person is

intoxicated without their own consent or against their will. In cases of involuntary intoxication, if
the person becomes incapable of understanding the nature of their actions, or if they are
rendered incapable of knowing that they are doing something wrong, they might be exempt from
criminal liability.
Consider the case of R v. Kingston (1994), where the defendant, suffering from a rare mental
disorder, committed a sexual offense while under the influence of alcohol. The court held that
the defence of involuntary intoxication could be applicable if the intoxication led to a lack of mens
rea (guilty mind) required for the offense.
Intoxication can affect criminal liability based on whether it is voluntary or involuntary. While
voluntary intoxication generally does not serve as a defence, involuntary intoxication might lead
to a reduction or exemption from criminal liability, depending on its impact on the accused's
mental state and their ability to understand the nature of their actions. Case law plays a crucial
role in determining the applicability of the intoxication defence in specific situations.

Q.2) Explain the concept of "Corporate Social Responsibility" as outlined in the Companies Act,
2013. What are the key provisions and obligations that companies need to fulfill under this
section? Provide examples of activities that qualify as CSR initiatives.
Answer
Corporate Social Responsibility (CSR) under the Companies Act, 2013, signifies the ethical and
philanthropic responsibility of companies toward society and the environment. Section 135 of
the Act mandates certain classes of companies to undertake CSR activities. These companies are
required to constitute a CSR Committee, develop a CSR policy, and allocate at least 2% of their
average net profits of the preceding three financial years towards approved CSR activities.
Key provisions and obligations under Section 135:
 Threshold Criteria: The CSR provisions apply to companies meeting any of the following
financial criteria:
 Net worth of INR 500 crore or more
 Turnover of INR 1,000 crore or more
 Net profit of INR 5 crore or more during the immediately preceding financial year.
 Unspent Amounts: If a company fails to spend the prescribed CSR amount in a given financial
year, it must provide explanations for the unspent amount. The unspent amount is required
to be transferred to a dedicated CSR Fund within six months of the end of the financial year.
 CSR Committee: Companies falling under the prescribed financial criteria are required to
constitute a CSR Committee comprising of three or more directors, including at least one
independent director, to formulate and recommend CSR policies and activities.
 CSR Policy: The CSR policy must outline the company's approach towards CSR, the activities
to be undertaken, the geographical areas of operation, and other related details.
 Eligible Activities: The Act specifies a range of activities that qualify as CSR initiatives,
including eradicating hunger, promoting education, ensuring environmental sustainability,
supporting healthcare, and contributing to rural development. This list is indicative and not
exhaustive, allowing companies to pursue other socially beneficial activities.
 Reporting: The CSR activities undertaken by companies must be disclosed in their annual
reports, including details about the CSR policy, implementation, amount spent, and any
reasons for unspent amounts.

 Board Approval: The CSR policy, formulated by the CSR Committee, needs to be approved
by the Board of Directors of the company. The policy should include a detailed outline of the
company's CSR objectives, focus areas, and implementation strategies.
 Independent Directors' Role: Independent directors have a role to play in ensuring that the
company's CSR initiatives are effectively implemented and aligned with the company's policy
and objectives.
Examples of CSR initiatives:
 Education: Funding schools in underprivileged areas, providing scholarships, and supporting

vocational training programs.
 Healthcare: Establishing medical camps, contributing to hospitals, and promoting awareness

campaigns for diseases.
 Environment: Undertaking afforestation, promoting sustainable practices, and reducing

carbon footprint.
The Companies Act, 2013, emphasizes the significance of Corporate Social Responsibility, making
it obligatory for eligible companies to contribute positively to society and the environment. This
legislative provision aims to align businesses with sustainable and ethical practices, thereby
fostering a more inclusive and responsible corporate culture.
Q.3) What is the role of the Securities and Exchange Board of India (SEBI) as outlined in the
Securities and Exchange Board of India Act, 1992, and what are its main functions in regulating
the securities market?
Answer
The Securities and Exchange Board of India (SEBI) is a statutory regulatory body established under
the Securities and Exchange Board of India Act, 1992. Its primary role is to oversee and regulate
the securities market in India, with the aim of protecting the interests of investors and ensuring
the fair and transparent functioning of the market. SEBI plays a crucial role in maintaining investor
confidence and promoting the development of the securities market.
Functions of SEBI

 Regulation and Oversight: SEBI has the authority to regulate various participants in the
securities market, including stock exchanges, intermediaries such as brokers and mutual
funds, and other entities involved in issuing and trading securities. It formulates rules,
regulations, and guidelines to ensure the smooth operation of the market.
 Investor Protection: One of SEBI's key objectives is to safeguard the interests of investors. It
works to prevent fraudulent and unfair trade practices, ensure timely and accurate disclosure
of information, and create an environment conducive to transparent and ethical dealings in
the market.
 Development of the Market: SEBI strives to promote the development of the securities
market by introducing innovative products and trading mechanisms. It encourages the
adoption of best practices and international standards to enhance the efficiency and
competitiveness of the market.
 Regulation of Intermediaries: SEBI sets standards for intermediaries like stockbrokers,

depository participants, and merchant bankers. It registers and regulates these entities to
ensure they comply with prescribed norms and maintain integrity in their operations.
 Prohibition of Insider Trading: SEBI enforces regulations against insider trading, which
involves the use of non-public information to gain an unfair advantage in trading. It monitors
and investigates suspicious trading activities and takes necessary actions to prevent and
penalize insider trading practices.
 Regulation of Takeovers and Mergers: SEBI oversees takeovers and mergers of listed
companies to ensure that the interests of minority shareholders are protected and that such
transactions are conducted in a fair and transparent manner.
 Research and Training: SEBI conducts research and provides education and training to
various market participants. It aims to enhance their understanding of market dynamics,
regulations, and best practices
The Securities and Exchange Board of India Act, 1992, empowers SEBI to regulate, promote, and
protect the Indian securities market, thereby contributing to the overall stability and growth of
the country's financial system.

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All India Mock Test

SEBI Grade A Legal 2023

Maximum marks (100) Time (60 mins.)

1|P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

The advancement made towards accomplishment of SDG7 in India appears noteworthy

2. Information Technology has overhauled work culture.

3. Life full of stress today

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4. The Pen is Mightier than the Sword. Comment.

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Q 1) Discuss the reasons for spike seen in Service sector growth.

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Q 3) Discuss the steps taken by service firms.

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Paper 2 - Objective -10:10 AM to 11:10

Q.7) Communication made ‘without prejudice’ are protected.

Q.9) Which among the following is not entitled to initiate CIRP?

Q.11) Confession caused by inducement, threat or promise is contained in________.

Q.13) Which of the following statement is/are correct?

Q.14) What is the initiation date in Corporate Insolvency Resolution Process?

Q.16) A confession made to a police officer is inadmissible under________-.

Q.22) Which of the following is correct?

[A] Central Government

Q.26) What is resolution plan?

Q.28) Section 160 of Cr PC authorises a police officer to_____________.

Q.29) How many designated partners are required in LLP?

[D] At least seven designated partners

Q.34) Who approves the resolution plan?

Q.36) Which of the following statement is incorrect?

Q.38) Consider following statement related to Governing Board of a Depository:

Q.43) Memorandum of a company can be altered by________.

[E] None of the above

Q.45) Who constitutes the committee of creditors?

Q.62) Guarantee of Settlement of trades is responsibility of whom?

If loss is caused by Depository's negligence, what relief Yashee may get?

Q.68) Who cannot hold any shareholding in the Stock Exchange?

[E] None of the above

Paper 2 - Objective -10:10 AM to 11:10

Q.68)B Q.69)E Q.70)B

Paper 2 - Objective -10:10 AM to 11:10

Title: Proof as to electronic signature

Following is a list of examples of UPSI (There can be many others also)

Email – hello@edutap.co.in, M - 8146207241 1|Pa ge http://www.edutap.co.in

[Marks: 10, Difficulty Level: Moderate]

Involuntary intoxication, as described in Section 86 of the IPC, occurs when a person is

Email – hello@edutap.co.in, M - 8146207241 3|Pa ge http://www.edutap.co.in

[Marks: 10, Difficulty Level: Moderate]

Key provisions and obligations under Section 135:

Email – hello@edutap.co.in, M - 8146207241 4|Pa ge http://www.edutap.co.in

Examples of CSR initiatives:

 Education: Funding schools in underprivileged areas, providing scholarships, and supporting

 Healthcare: Establishing medical camps, contributing to hospitals, and promoting awareness

 Environment: Undertaking afforestation, promoting sustainable practices, and reducing

[Marks: 10, Difficulty Level: Moderate]

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 Regulation of Intermediaries: SEBI sets standards for intermediaries like stockbrokers,

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