Question

Hindpin Ltd., invited public to subscribe for equity shares of Rs. 100 each. Before the issue managing director of the company had a deal with foreign company to amalgamate two subsidiary companies of the Hind pin Lad, Just after concluding the public issue, Managing director did not disclose this important fact in prospectus. This aspect was highly objected later by shareholders. The concerned regulatory authority took action and managing director was punished and penalised as per regulations. On the basis of the given information answer the

following a) Identify the kind of capital market indicated in the case. b) Identify the Regulatory Body, mentioned above.

c)

List any three objectives of establishing the concerned regulatory authority​

Answer 1

Explanation:

. b) Identify the Regulatory Body, mentioned above.

Answer 2

a) Identify the kind of capital market indicated in the case.

b) Identify the Regulatory Body, mentioned above.

c)  List any three objectives of establishing the concerned regulatory authority​

A) Secondary Market:It is the a market where the investors sell and but the concerned shares which they have already.

B)SEC(Securities and Exchange Commission)

C)Objectives:

1. Secure the investors
2. Maintaining fairness in deals.
3. Facilitating the  formation of capital.