Institute of Chartered Financial Analysts of India (ICFAI) University 2006 Certification Finance Security Analysis – II - Question Paper
Monday, 17 June 2013 12:10Web
Page 8 of 17
400.05
142.75
285.21
Corporate Tax on Interim Dividend
37.41
22.01
–
14.56
14.55
Corporate Tax on Final Dividend
60.26
51.35
32.79
–
14.55
Annexure I
Closing value of the S & P CNX NIFTY and Dabur India Ltd. for the last 1 year
End of the month
S & P CNX NIFTY
Dabur India Ltd
September-04
1745.50
73.00
October-04
1786.90
80.65
November-04
1958.80
88.05
December-04
2080.50
92.20
January-05
2057.60
101.35
February-05
2103.25
115.70
March-05
2035.65
111.05
April-05
1902.50
116.25
May-05
2087.55
128.65
June-05
2220.60
131.35
July-05
2312.30
145.40
August-05
2384.65
153.50
September-05
2611.20
162.75
Annexure II
tech. Analysis Charts
Price line
END OF part D
part E : Caselets (50 Marks)
This part consists of ques. with serial number seven - 13.
ans all ques..
Marks are indicated against every ques..
Do not spend more than 80 - 90 minutes on part E.
Caselet 1
learn the caselet carefully and ans the subsequent questions:
7. According to the caselet, what exactly is Insider Trading? discuss the mechanism through which Insider Trading takes place?
(8 marks) < ans >
8. What is the legal status of Insider Trading in India and how SEBI keeps a watch on Insider trading transactions?
(8 marks) < ans >
The persons involved in the insider trading are questionable but not the insider trading itself. This can be viewed from different transactions involved in these companies. Promoters affirm on compiling with the corporate governance rules. Investment bankers’ states about there own compliance and their internal systems. So who are the real guilty! Take the stock of Adlabs Films, a company in entertainment sector. Adlabs is priced at Rs.162.05 on the National Stock Exchange as on June 1, 2005. In next ten days the scrip was trading at Rs.189.65, with a trading quantity of 19 times compared to quantity on June 1, 2005. (volume as on June 1, 2005 is 29,005 shares and quantity as on June 10, 2005 is 5,50,578 shares). On June 29 it is trading at around Rs.200 with a quantity of 10,99,549 shares. On the last of the month, Reliance Capital send notices to the stock exchange informing them about a decision for acquiring 51% stake in the Adlabs Films Ltd. On that day price zooms to Rs.241.45 with a quantity of 30,99,256 shares and on the next day it went to Rs.281.70 with a quantity of 64,21,675 shares. The major observation made here is that Nifty got up only 6.37% against Adlabs scrip, which jumped 49% in the identical period.
| Earning: Approval pending. |
