Share and Learn Sept 2023

Legal Words:

  1.  Transgression– An act that goes against a law, or code of conduct; an offense.
  2. Construed– interpreted in a particular way.
  3. Consonance– Agreement or compatibility, between opinions or actions.
  4. Retrospectively– looking back.
  5. Dissuade– persuade not to take a particular course of action.
  6. Rationale– set of reasons.
  7. Embezzlement– Theft or misappropriation of funds placed in one’s trust or belongings to one’s employer.
  8. Perished- die, especially in a violent or sudden way.
  9. Inter alia – among other things
  10. Legal Luminary– a person who inspires or influences others, especially one prominent in a particular sphere.

 Legal Maxim:

  1.  Caveat emptorLet the purchaser beware.
  2. Caveat venditorLet the seller beware
  3. De factoIn fact
  4. De jureRightful, by right
  5. Delegata potestas non potest delegariA delegated authority cannot be again delegated.
  6. Ipso factoBy that very fact
  7. Mandamus– We command
  8. Mens rea– Guilty state of mind

1. Whether providing of loan to a managing or whole-time director as a part of the company’s employment conditions trigger the provisions of Section 185?

  1. Yes
  2. No

2. Whether any loan received by a company from another company falls within the definition of ‘deposits’?

  1. Yes
  2. No

3. Is the offense specified under Section 212 of the Companies Act, 2013 i.e. Investigation into affairs of the Company by the Serious Fraud Investigation Office, considered cognizable?

  1. Yes
  2. No

4. Is it permissible for the existing auditor to continue as the auditor of the company at the AGM if no new auditor is appointed or reappointed?

  1. Yes
  2. No

5. Whether board can fix the remuneration of the first auditor of the Company who is appointed by them?

  1. Yes
  2. No

6. Whether the advancement of money/ loan amounts to a related party transaction covered underSection 188 (1) (d) of the Companies Act, 2013 for an unlisted company?

  1. Yes
  2. No

Answer: 1-b, 2-b, 3-a, 4-a, 5-a, 6-b

General Information

ISIN- International Securities Identification Number

ISIN is a 12-digit alphanumeric code that uniquely identifies a specific security. National Numbering Agencies (NNAs) in each country allocate ISINs, ensuring global consistency and tracking of financial instruments.

FLA  -Annual Return on Foreign Liabilities and Assets

An Indian company or LLP that has received Foreign Direct Investment by way of capital contribution in the previous year(s) including the current year needs to file a Form FLA every year with the office of the Reserve Bank of India on or before the 15th day of July.

LEI-Legal Entity Identifier

LEI is a reference code, like a bar code, that is used across markets and jurisdictions to uniquely identify a legally distinct entity that engages in a financial transaction. Each LEI code is assigned by an approved local operating unit, which benefits from local knowledge of infrastructure, corporate organizational frameworks, and business practices. LEIs facilitate the identification of participants in financial markets, serving both financial institutions and regulators.

QIB-Qualified Institutional Buyer

A Qualified Institutional Buyer (QIB) is a class of investor that is considered a sophisticated investor and are exempt from certain regulatory protections provided by the Securities Act’s registration requirements due to their presumed financial expertise and ability to make informed investment decisions.

SDD -Structured Digital Database

A Structured Digital Database (SDD) is a database of Unpublished Price Sensitive Information (UPSI), shared internally or externally with the intent of keeping track of who all were in the knowledge of UPSI before it became public. This concept originates from SEBI (Prohibition of Insider Trading) Regulations, 2015, specifically Reg. 3 (5) and 3 (6). It was introduced through the SEBI (Prohibition of Insider Trading) (Amendment) Regulations, 2018, with effect from April 1, 2019.

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