Paper 7: Corporate Funding & Listings in Stock Exchanges (Max Marks 100)
Objective Part I : To provide practical knowledge of means of finance available to corporates at their various stages of journey, their suitability, pros and cons, process, compliances etc. Part II : To acquire knowledge of legal & procedural aspects of various types of listing, eligibility criteria, documentation, compliances, etc. Detailed Contents Part-A: Corporate Funding (60 Marks) 1. Indian Equity- Public Funding: Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009; Initial Public Offer (IPO)/ Further Public Offer (FPO); Preferential Allotment; Private Placement; Qualified Institutional Placement; Institutional Private Placement; Rights Issue; Fast Track Issue; Real Estate Investment Trust (REIT);Infrastructure Investment Trust (InvIT). 2. Indian Equity Private funding: Venture Capital; Alternative Investment Fund; Angel Funds; Seed Funding; Private Equity. 3. Indian equity Non Fund based: Bonus issue; Sweat Equity, ESOP. 4. Debt Funding Indian Fund Based: Debentures, Bonds; Masala Bonds; Bank Finance; Project Finance including machinery or equipment loan against property, Loan against shares; Working Capital Finance- Overdrafts, Cash Credits, Bill Discounting, Factoring etc. Islamic Banking. 5. Debt Funding Indian Non fund Based: Letter of Credit; Bank Guarantee; Stand by Letter of Credit etc. 6. Foreign Funding Instruments & Institutions: External Commercial Borrowing (ECB); American Depository Receipt (ADR)/ Global Depository Receipt (GDR); Foreign Currency Convertible Bonds (FCCB); Foreign Currency Exchangeable Bonds (FCEB); International Finance Corporation (IFC), Asian Development Bank (ADB), International Monetary Fund (IMF). 7. Other Borrowings Tools: Inter-corporate Loans; Commercial Paper etc.; Deposits under Companies Act; Customer Advances/ Deposits. 8. Non-Convertible Instruments- Non-Convertible Redeemable Preference Shares (NCRPs) etc. 9. Securitization.
Part B: Listing (40 Marks) 10. Listing–Indian Stock Exchanges: Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015; Equity Listing (SME, ITP, Main);Debt Listing; Post listing disclosures. 11. International Listing: Applicability of Listing Regulations, Singapore Stock Exchange; Luxembourg Stock Exchange; NASDAQNGSM, NCM, NGM; London Stock Exchange- Main, AIM; U S Securities and Exchange Commission. 12. Various Procedural requirements for issue of securities and Listing. 13. Preparing a Company for an IPO and Governance requirements thereafter, Appraising the Board and other functions in the organisations regarding the Post IPO/Listing Governance changes. 14. Documentation & Compliances. Case studies and Practical aspects.