Nirma University. Institute of Law. Course: Investment and Securities Law Course Code: 2BAL804

Transcription

1 Nirma University Institute of Law Course: Investment and Securities Law Course Code: BAL804 B.A. LL.B.(Hons.) Program: Semester-VIII Even Semester (Jan June 010) Course Module Course Coordinar: Dr. Nitesh Saraswat (Asst. Prof.) Co- Faculties: Adv. Shri. Vandan Bakshi 48

2 Nirma University Institute of Law Academic Year 011 Investment and Security laws Semester VIII Teaching Hours: - 30 Course Coordinar: Dr. Nitesh Saraswat 10 hrs Co-Faculty: Shri. Vandan Bakshi (Adv) 0 hrs Introduction & objective of the course: There is a revolution in the laws relating investment and security. The economic and social development depends on security market at national and global levels. On the global level there is a trend for unification of controls of securities and investments. Reflection of this global phenomenon is essentially be felt in India. The new laws and regulations now fall line with the global requirements at times transcending the constitutional limitations. Needless say that the study of law relating investment and securities attains new dimensions. The subject dynamically covers the syllabus as follows. Syllabus 1. Hisrical Background of securities and investment laws 1.1. Securities: the concept 1.. England: Banking corporate finance and private financial services 1.3. India: from usury laws the modern system. Securities: Kinds.1. Government Securities.. Securities issued by banks.3. Securities issued by corporations.4. Securities in mutual fund and collective investment scheme.5. Deposiry receipts 3. Government Securities 3.1. Bonds issued by government and semi government institutions 3.. Role of Central Bank (the RBI in India) 3.3. Impact of issuance of bonds on economy 3.4. Government loan from the general public 3.5. External borrowing 49

3 World Bank I.M.F Asian Development Bank Direct loan from foreign government Government loan: the constitutional dilemma and limitations 3.7. Can a state go for external loans? 3.8. Impact on economic sovereignty 3.9. Dilution of power of the Central Bank (RBI) Treasury deposits 4. Securities Issued by Banks 4.1. Bank notes: is it the exclusive privilege of the Central Bank in the issue 4.. Changing functions of banks from direct lending and borrowing modern System 4.3. Bank draft, travellers' cheques, cheque cards, credit cards, cast cards 4.4. Deposits' nature: current, saving and fixed deposits, interest warrants 5. Corporate Securities 5.1. Shares 5.. Debentures 5.3. Company deposits 5.4. Control over corporate securities Central government: Company Law Board SEBI: guide lines on capital issues RBI 5.5. Protection of invesr Administrative regulation Disclosure regulation Protection by criminal sanction 6. Collective Investment 6.1. Unit Trust of India 6.. Venture capital 6.3. Mutual fund 6.4. Control over issue and management of UTI, venture capital and mutual funds 6.5. Plantations and horti-culture farms General control Control by rating Regulation on rating. 7. Deposiries 7.1. Denationalized securities 7.. Recognition of securities 7.3. Types of deposiry receipts: IDR, ADR, GDR and Euro receipts 7.4. SEBI guideline on deposiries 50

4 8. Investment in non-banking financial institutions 8.1. Control by usury laws 8.. Control by RBI 8.3. Regulation on non-banking financial and non-financial companies Private-financial companies: registration and regulation Chit funds 9. Foreign Exchange Control Regime in India 9.1. Concept of foreign exchange regulation 9.. Administration of exchange control Suggested Text Books Avdhani. V.A, Himalaya Publishing House, 005, Investment and Securities Markets in India. Khan. M. Y, Tata McGraw Hill Publication, 009, Financial Services. K.P.M. Sundaram, P.N.Varshney, Sultan Chand & Sons, Banking theory, Law and Practice Dutta s banking law and Investments, Suggested References Farrar, John, H. and Hanniyan, Brenda, Farrr's Company Law, (1998) Butterworths, London Gupta, S.N., the Banking Law in Theory and Practice, (1999) Universal, New Delhi. Tannan, M.L., Tannan's Banking Law and Practice in India, (000) India Law House, New Delhi Ramaiya, A., Guide the Companies Act, (1998) Wadhwa and Co., New Delhi. Bhandari, M.C., Guide Company Law Procedures, (1996) Wadhwa and Co., New Delhi. Ford, Haj A.M., et. al. Ford's Principles of Corporations Law, (1999) Butterworths, London. Purithavathy Pandian, Vikas Publishing House, Delhi. Security Analysis and Portfolio Management. Kucchal. S.C, Chaitanya publishing House,1 st ed. Corporate Finance. Shekhar. K.C. Shekar Lekshmy, Vikas Publishing House, 0 th ed, Banking theory and Practice. Dr. S. Gurusamy, Tata McGraw Hill, 009, Financial Markets and Institutions. Mithani.D.M, Himalaya Publishing House, Money banking, International trade and Public Finance. Singh Preeti, Himalya Publishing House, Investment management. G.Vijayragvan Iyenger, Excel books, New Delhi, Introduction Banking. Bholey. L. M, Financial Institutions and Markets. 51

5 Reading Material a. Compulsory: Tannan s Banking Law, visit website of NSE, BSE, SEBI and NCFM Modules. b. Reference: Reading material from capital markets magazines, moneycontrol.com, Investment strategies for institutional invesrs and policies for foreign invesrs. Teaching Plan Sr No. Date Unit Topic & Sub Topic Number of Lecture st Jan 4 th Feb 1 1. Hisrical Background of securities and investment laws 1.1. Securities: the concept 1.. England: Banking corporate finance and private financial services 1.3. India: from usury laws the modern system. Securities: Kinds.1. Government Securities.. Securities issued by banks. 7 th Feb 11 th Feb.3. Securities issued by corporations.4. Securities in mutual fund and collective investment scheme.5. Deposiry receipts 3 3. Government Securities 5

6 3.1. Bonds issued by government and semi government institutions 3.. Role of Central Bank (the RBI in India) 3.3. Impact of issuance of bonds on economy 3.4. Government loan from the general public th Feb 18 th Feb 3.5. External borrowing World Bank I.M.F Asian Development Bank Direct loan from foreign government Government loan: the constitutional dilemma and limitations 4. 1 st Feb 5 th Feb 3.7. Can a state go for external loans? 3.8. Impact on economic sovereignty 3.9. Dilution of power of the Central Bank (RBI) Treasury deposits 4 4. Securities Issued by Banks 4.1. Bank notes: is it the exclusive privilege of the Central Bank in the issue 4.. Changing functions of banks from direct lending and borrowing modern System 5. 8 th Feb 4 th March 4.3. Bank draft, travellers' cheques, cheque cards, credit cards, cast cards 4.4. Deposits' nature: current, saving and fixed deposits, 53

7 interest warrants 5 5. Corporate Securities 5.1. Shares 5.. Debentures 5.3. Company deposits 6. 7 th March 11 th March 5.4. Control over corporate securities Central government: Company Law Board SEBI: guide lines on capital issues RBI 7. nd March 5 th March Protection of invesr Administrative regulation Disclosure regulation Protection by criminal sanction 6. Collective Investment 6.1. Unit Trust of India 6.. Venture capital 8. 8 th March 1 st April 6.3. Mutual fund 6.4. Control over issue and management of UTI, venture capital and mutual funds 6.5. Plantations and horticulture farms General control Control by rating Regulation on rating 9. 4 th April 8 th April 7 7. Deposiries 7.1. Denationalized securities 7.. Recognition of securities 7.3. Types of deposiry 54