Question

‘R’ Limited is a real estate company which was formed in 1950. In about 56
years of its existence the company has managed to carve out a niche for itself in
this sector. Lately, this sector is witnessing a boom due to the fact that the Indian
economy is on the rise. The incomes of middle class are rising. More people can
afford to buy homes for themselves due to easy availability of loans and
accompanying tax concessions.
To expand its business in India and abroad the company is weighing various
options to raise money through equity offerings in India. Whether to tap equity or
debt. market whether to raise money from domestic market or international market
or Combination of both? Whe their to raise the necessary financé from money
market or capital market. It is also planning to list itself in New York Stock Exchange
to raise money through ADR’s. To make its offerings attractive it is planning to
offer host of financial plans products to its stakeholders and investors and also
expand it’s listing at NSE after complying with the regulations of SEBI.
(i) What benefits will the company derive from listing at NSE?
(ii) What are the regulations of SEBI that the company must comply with?
(iii) How does the SEBI exercise control over ‘R’ Limited in the interest of
investors?

Answer 1

SOLUTION :

(a) The company will derive the following benefits from the listing at NSE :  

• Access to investors.

• Positive image of the company.

• Valuation of securities.

 

(b) Company must comply with the following regulation of SEBI :  

• Registration with SEBI.

• Credit rating if necessary.

Appointment of various professionals.

 

(c) SEBI control the functioning of companies in the interest of  Investors in the following manner :  

• It prohibits insider training.

• It prohibits price rigging.

• It guides and educates the investors.

 HOPE THIS ANSWER WILL HELP YOU…

 

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Answer 2

Answer:

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