Advertisements
Advertisements
Question
Attempt the following:
Write a reply to a complaint by an investor
Advertisements
Solution
VIKRAM COMPANY LIMITED
Registered Office: 49, Vikas house, Vivekananda Road,
Churchgate, Mumbai - 400 020.
CIN : L42874MH2021PLC666398
Tel. No. (022) 2213 4769
Fax No. (022) 2213 5698
Website: www.vikramcoltd.com
E-mail: [email protected]
Date: 15th July, 2019
Ref. No. VC/69/19-20
Mr. Vaibhav Joshi,
15, Prerna Mahal, lala lajpat rai Road,
Ahmadabad 380 009.
[By Registered Post A.D.]
Sub: Non-receipt of Dividend for 2018-19
Dear Sir,
I am in receipt of your complaint letter dated 10th July 2019 regarding non-receipt of dividend for the year 2018-19. In this regard. I am directed by the Board to inform you that your Board of Directors has carefully considered the financial position and profits of the company before taking a decision on the payment of dividends.
The Board of Directors is of the view that the non-payment of dividends this year will help strengthen the financial position of your company. Such a non-payment of dividend will provide additional nuance for the expansion and development programme which your company has in its immediate view. The alternative to this step was heavy borrowings from the banks and other (financial institutions at a higher rate of interest. The consequent heavy burden of interest would have decreased the probability of your company. The Board's decision of non-payment of dividends will prove to be a boon to the Company as also to its members.
I hope you will appreciate the long term beneficial view taken by the Board in this regard.
Your faithfully,
For Vikas company limited
Sd./
Company secretary
C.C to: SEBI
APPEARS IN
RELATED QUESTIONS
Mr. Vikas Mehra was the Chairman of 'IBM Bank'. The Bank was earning good profits. Shareholders were happy as the bank was paying regular dividends. The market price of their shares was also steadily rising. The bank was about to announce the taking over of 'UK Bank'. Mr. Vikas Mehra knew that the share price of 'IBM Bank' would rise on this announcement. Being a part of the Bank, he was not allowed to buy shares of the bank. He called one of his rich friends Mukand and asked him to invest Rs 4 crores in shares of his bank promising him the capital gains. As expected after the announcement, the share prices went up by 50% and the market price of Mukand's shares was now Rs 6 crores. Mukand earned a profit of Rs 2 crores. He gave Rs 1 crore to Vikas Mehra and kept Rs 1 crore with him. On regular inspection and by conducting enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this irregularity. SEBI imposed a heavy penalty on Vikas Mehra.
Quoting the lines from the above para identify and state any two functions performed by SEBI in the above case.
State the protective functions of the Securities and Exchange Board of India.
What are the objectives of SEBI?
Answer each of these questions in about fifteen words
What do you understand by private placement?
Answer each of these questions in about fifteen words:
When was SIDBI established?
What is the power of SEBI?
State any three Development functions of Securities and Exchange Board of India.
Select the correct answer from the options given below and rewrite the statement.
________ was established as a statutory body to regulate the securities market in India.
What are the objectives of the SEBI?
Which of the following is the regulatory function of SEBI?
Which of the following is the development function of SEBI?
Under which method, the securities are sold only to some selected individuals and big institutional investors rather than to the public.
______ is an institution or organisation, which holds securities in electronic form, in which trading is done.
The Securities and Exchange Board of India was established by the Government of India and was given a statutory status in ______.
Which of the following statements is incorrect?
'Due to various malpractices and multiplied investors grievances the Govt. of India decided to set up a separate regulatory body to protect the interest of investors and to regulate the securities market.'
- Identify the regulatory body set up by Govt. of India for the above-stated purpose.
- State any one objective of the regulatory body identified in (a) above.
SEBI regulates the securities market in India.
