Ans- 2- Mutual Fund

Introduction

Mutual Funds is a component for pooling the assets by giving units to the investors and
putting supports in protections as per targets as unveiled in offer record. A trust gathers cash
from various investors who share a typical venture objective and puts equities, bonds, money
market instruments and/or other securities. And the pay/gains produced from this aggregate
speculation is dispersed proportionately among the investors in the wake of deducting
relevant costs and requires, by computing a plan's "Net Asset Value" or NAV. Basically, the
cash pooled in by countless investors makes up a Mutual Fund.

Mutual Fund are great for financial investors who either need huge aggregates for the
investments, or for the individuals who neither have the tendency nor an opportunity to
explore the market, yet need to develop their riches. The cash gathered in shared reserves is
put by professional fund managers in accordance with the plan's expressed goal.
Consequently, the mutual fund charges a little expense which is deducted from the venture.
The expenses charged by common investments are controlled and are dependent upon
specific regulations indicated by the Securities and Exchange Board of India (SEBI).

In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. The
objectives of SEBI are – to protect the interest of investors in securities and to promote the
development of and to regulate the securities market. Taking everything into account, SEBI
figures out strategies and directs the mutual funds to safeguard the interest of the investors.
SEBI advised guidelines for the investments in mutual funds in 1993. From that point, mutual
funds supported by private markets were permitted to enter the capital market. The guidelines
were completely overhauled in 1996 and have been changed from there on now and again.
SEBI has likewise given rules to the mutual funds every once in a while to safeguard the
interests of investors.

All mutual funds whether advanced by private or public sectors that has elements regulated
by foreign entities are administered by similar arrangement of Regulations. There is no
qualification in administrative prerequisites for these mutual funds and all are likely to
checking and reviews by SEBI. The risks related with the plans sent off by the mutual funds
are supported by these similar entities.
Set up of Mutual Funds under SEBI

A mutual fund is set up as a trust, which has support, legal administrators, resource the board
organization (AMC) and caretaker. The trust is laid out by a sponsor or more than one
sponsor who is like advertiser of an organization. The legal administrators of the mutual fund
hold its property to serve the unitholders. Asset Management Company (AMC) approved by
SEBI manages the funds by making investments in various types of securities. Custodian,
who is registered with SEBI, holds the securities of various schemes of the fund in its
custody. The trustees are vested with the general power of superintendence and direction over
AMC. They monitor the performance and compliance of SEBI Regulations by the mutual
fund.

SEBI Regulations states that minimum two thirds of the directors of trustee company or
board of trustees must be independent i.e. they can’t be related with the sponsors. Also, 50%
of the directors of AMC must be independent. All mutual funds are required to be registered
with SEBI any launch of a new scheme.

The performance of a particular scheme of a mutual fund is denoted by Net Asset Value
(NAV).

Mutual funds put away the cash gathered from the investors in protections markets. In
straightforward words, Net Asset Value is the market worth of the securities held by the plan.
Since market worth of security changes consistently, NAV of a plan likewise shifts on
everyday premise. The NAV per unit is the market worth of security of a plan separated by
the all out number of units of the plan on a specific date. For instance, in the event that the
market worth of protections of a shared asset plot is Rs 200 lakhs and the common asset has
given 10 lakhs units of Rs. 10 each to the financial investors, then the NAV per unit of the
asset is Rs.20. NAV is expected to be uncovered by the mutual funds consistently every day,
or week by week, contingent upon the sort of plan.

Lastly prior to wandering into mutual fund, an investor should get itemized data about the
schemes offered by mutual funds. Having the right data when expected to go with the vital
choice is the way to making appropriate ventures. This might help in picking the right plans,
knowing the rules to keep and furthermore be educated regarding the financial investor’s
privileges.
Ans-1-

Indian company, OMG India Pvt Ltd wants to raise money from foreign investors by issuing
securities. The requirements and procedures for raising money through issuance of depository
receipts are discussed below.

A depositary receipt is a negotiable instrument receipt issued by a bank to represent shares in

a foreign public investment company or local stock exchange, which allows investors to trade
in the markets at a global level. A depositary receipt, which was initially an actual testament,
permits investors to hold shares in the value of different nations. One of the most widely
recognized kinds of DRs is the American depositary receipt (ADR), which has been offering
organizations, investors, and brokers worldwide speculation potential open doors since the
1920s. Central Government notified the Companies (Issue of Indian Depository Receipts)
Rules, 2004 (IDR Rules) pursuant to the section 605 A of the Companies Act. SEBI issued
guidelines for disclosure with respect to IDRs and notified the model listing agreement to be
entered between Stock Exchange and the foreign issuer specifying continuous listing
requirements.

Depositary receipts provide investors with the benefits and rights of the underlying shares,
which may include voting rights, dividends, and open up markets that investors would not
have access to otherwise.

The eligibility criteria given under IDR Rules and Guidelines states the foreign company
must have pre‐issue paid‐up capital and free saves of essentially US$ 50 million and have a
base normal market capitalization (during the most recent 3 years) in its nation of origin of in
any event US$ 100 million. A nonstop exchanging record or history on a stock trade its
nation of origin for at least three quickly going before years. And it must recorded in its
nation of origin and not been denied to give protections by any Administrative Body and has
a decent history regarding consistence with protections market guidelines in its nation of
origin.

Foreign Custodian Bank is a financial organization which is laid out in a nation outside India
and has a position of business in India and goes about as caretaker for the value portions of
giving companies against which IDRs are proposed to be given in the basic value portions of
the guarantor is saved.
Merchant Banker enlisted with SEBI who is liable for a reasonable level of investment and
through whom the draft plan for issuance of the IDR and a reasonable level of investment
authentication is documented with SEBI by the investor company.

Changes that facilitates a private company to raise money-

 With the end goal of an underlying issue and posting of DRs, according to 'transfer by
existing holders', the Listed Company will give a chance to its value investors to
delicate their portions for cooperation in such posting of DRs.
 Ensuing issue and posting of DRs, as per 'move by existing investors' might occur
subject as far as possible approved pursuant to an exceptional goal regarding GDR
Rules
 A company proposing to make a public deal and list on a Recognized Stock
Exchange, and furthermore all the while proposing to give Permissible Securities or
move Permissible Securities of existing holders, with the end goal of issue of DRs and
posting such DRs on an International Exchange, may look for on a fundamental level
and last endorsement from Recognized Stock Exchange as well as International
Exchange. Be that as it may, such issue or move of Permissible Securities for the
 DRs will be ensuing to, the receipt of exchanging endorsement from the Recognized
Stock Exchange for the public proposition.

Ans-3- (a) ULIP AS AN INVESTMENT OPTION

Introduction

A part of the premium paid under this policy is used for life insurance cover, and a part used
for investment in instruments selected by the policyholder. Therefore the policyholder or the
investor has control over his funds. This makes this kind of policy useful as the fund has the
potential to grow. This policy's premium payment is split between life insurance coverage
and investments in the instruments the policyholder chooses. As a result, the policyholder or
investor is in charge of his money. Because the fund has the capacity to expand, this makes
this type of policy desirable.
However, it is important to keep in mind that investing in the financial markets entails some
market risks. However, given that the money is handled and invested by specialists, there is a
certain degree of reduction in the dangers, even if they still remain.

ULIP
Before making an investment in the ULIP plan, there are a few things to consider. The first is
to confirm that the investment in such a policy is consistent with the investor's vision for the
future. What objectives does he have in mind for his investments? Does that make sense
given that market risks exist and that a portion of the premium would be utilised for
investments? The overall investment may need to be carefully estimated if a certain amount
of money is needed upon maturity or the investor's passing. The issue of terminology is
another. The majority of ULIP investments are long term. When the money is left invested
for a long time, they provide the greatest return. It is not a quick-win investing strategy.
Therefore, it is necessary to determine the amount of cash needed to cover the coverage.
Investment in ULIPs is a bad option if short-term finances are needed. Nevertheless, because
life insurance plans are often long-term investments, it is intriguing to think about making an
investment in a ULIP linked plan.
The best course of action is to determine how much life insurance is necessary to protect the
family from financial hardship and then determine how much money is available for
investment. Once this is determined, choosing the amount to invest in becomes simpler. The
potential return on investment increases with the size of the sum. The basic point is to think
of a ULIP plan as an insurance policy that simultaneously functions as an investment vehicle.
Since an investment entails using a portion of the premium as an investment vehicle, it is
possible to imagine how the fund will develop in the future. Although it doesn't guarantee
that this is what the policyholder will receive, it does provide an indicator based on past
market performance.

It is crucial to bear in mind that an investor's willingness to take on risk determines whether
or not they should invest in marketable securities. A low-risk investor may request that his
money be put in low-risk debt funds. It is crucial to invest in those sectors where the risk is
high but the rewards are equally great if the investor has a high risk/high reward appetite.
This freedom to invest in both low-risk and high-risk areas is provided by ULIP plans.
Without incurring astronomical fees, switching from one location to another is simple.
The fact that the funds can have a lock-in term, such as five years, is another thing to bear in
mind. This indicates that the money won't be accessible during that time. The ULIP plan is a
terrific choice if the investor has backup funds for emergencies and is financially stable. It is
crucial to consider if the person seeking to invest should consider that before moving forward
because the invested cash will be locked for a while. ULIP plans are often straightforward,
however it is important to review all upcoming fees. You can choose the finest plan by
comparing those given by various insurance providers. Given that investment is anticipated,
it's critical to double-check everything. Check out the ULIP performance of the insurance
firms over the last four years before investing. This need to demonstrate the calibre of the
investors. This is crucial since the goal of investing in a ULIP plan is to increase the fund and
generate income. Therefore, the results should show if the fund managers in the insurance are
proficient in what they do.

Why invest in ULIP

ULIP provide a higher return. Additionally, they provide the investor with life insurance
protection. A significant return can be anticipated if a ULIP plan has a term of at least 10
years. The returns are pretty good if the policyholder is still living at maturity and does not
pass away while the insurance is still in effect. Investment gains plus the life insurance
policy's maturity payment. Normal life insurance plans often reimburse the insured for their
whole amount as well as a bonus. Since there is no investment component, the only
meaningful growth is whatever bonuses the insurance company declares. Using an online
ULIP calculator to determine potential returns is a terrific idea. For the life insurance portion,
the calculator considers factors like age, gender, and whether or not you smoke, among other
things. The amount of the investment premium and the chosen instruments will determine the
investment. The calculator will display your gain over the course of ten years. Given that the
investment portion will result in earnings, it will undoubtedly be considerable. Due to its dual
benefits of life insurance protection and investments that may provide significant returns over
time, ULIP plans are crucial to invest in. The best investment available right now is this one.

Conclusion

ULIP is an acronym for Unit Linked Insurance Plan coverage. It is an instrument that
integrates investing and insurance into one product. Policyholders have the option of paying
their premiums monthly or yearly. In this plan, the remaining funds are invested while a part
is used to provide life insurance coverage. The risks related to the capital market are exposed
to the investments in these schemes. The policyholder is responsible for the investment risk
on the investment portfolio. As a result, it is advised that a person base their investment
choice on their needs and level of risk tolerance.

Few of the benefits of ULIP are

1. Disciplined Investments: The systematic method calls for you to make periodic and regular
premium payments. This pays out in the long term since you get to profit from compounding.

2. Average Purchase Costs: In the case of a one-time purchase, your purchase price could not
be low enough. If the markets decline after you invest, it signifies that you purchased your
units at a time when the market was at its peak. However, systematic investing enables the
averaging of one's purchase price.

3. Averaging of Redemption Prices: The SISO technique also averages out the redemption
prices, just like it does with the purchase expenses. As a result, if the markets do well during
the redemption phase, you could profit from those changes as your average redemption price
will rise as well.

4. Extensive Market Time: It's no secret that market time is more significant than market
timing. When you choose to withdraw your payments in a planned manner at policy maturity,
your remaining fund value continues to be invested in the funds of your choice, giving you
the returns you choose even while you take periodic payouts.

5. Additional or Alternative Income: Depending on the timing of your withdrawals, the

payments may serve as an adequate additional or alternative source of income. The regular
payments become an additional source of income for you to rely on if you are still in your
working years so that you may accomplish your life objectives.

However, if you are retired, the regular payouts might replace your paycheck and possibly aid
in covering your daily needs.

6. Extended Tax Benefits: Subject to the restrictions outlined in Section 80C of the Income
Tax Act of 1961, the premium you pay for your ULIP insurance is eligible for tax deductions.
You are allowed to deduct up to Rs. 1,50,000 every year.
7. Effective Money Management: Some families may find it difficult to handle sizable
quantities of money in the event that the breadwinner passes away. But it is simpler to handle
the funds when the death benefits are divided into regular instalments using the SISO
technique.

Ans-3-(b) Crowdfunding

Crowdfunding is the technique of using the internet to raise money from a large number of
individuals in order to finance a project. It is a type of alternative funding for people who lack
the resources to raise money for projects they want to launch. Mail order subscriptions,
offline fundraising events, and other events have all been precursors to the model currently in
use, but as the internet has developed, people have discovered new uses for it that allow them
to connect with a larger audience through the various crowdfunding platforms that are
currently available. Crowdfunding has been employed for charitable objectives including
raising funds for refugee crises, environmental problems, local problems, and many more
causes. It serves as a venue for raising funds for individual endeavours like artistic
endeavours, healthcare costs, travel, business endeavours, etc.

Crowdfunding platforms enable people to donate to a project or cause they believe in by

bringing them together and utilising a network of many people with similar interests. By
extending the pool of investors beyond the conventional sources of owners, relatives, and
venture capitalists, it has the potential to encourage entrepreneurship. Entrepreneurs now
have the chance to raise hundreds of thousands or millions of dollars from anyone willing to
put their money into nothing more than a concept thanks to crowdfunding platforms. These
platforms offer a venue for anyone with an idea to present it to eager investors and create a
wealth of additional prospects. These websites allow investors (basically strangers) to browse
hundreds of ideas and invest in the ones they like. There is no minimum investment amount,
and most of the time, rewards are given for all donations dependent on how much is spent.

The Revenue Generation

A portion of the money received serves as the source of income for crowdfunding platforms.
Some of the most famous crowdfunding websites on the internet are GoFundMe and
Indiegogo, as well as Kickstarter, which is the most well-known and synonymous with
crowdfunding. Over 130,000 projects have been successfully funded on the crowdsourcing
platform Kickstarter since its launch in 2009, and more than 3.5 billion dollars have been
committed for a variety of causes. After launching in 2007 as a platform for funding indie
films, Indiegogo expanded to accept projects across all categories in 2008.

Because it allows users the choice to pick between fixed or flexible models, Indiegogo is
viewed as a less restrictive and more flexible platform than Kickstarter. This is likely the
biggest distinction between the two well-known crowdfunding platforms. While Indiegogo
gives the campaigner the option of accepting funding as it arrives or delaying payment until
the campaign reaches its funding target, Kickstarter only delivers funds once the campaign
has completed its funding goal. Additionally, social networking is a potent tool for expanding
the audience for your enterprise.

Additionally, those who support your product or are personally invested in it have the choice
to spread the word about it to their network, thus expanding its audience. Because they can
reach a bigger audience than an individual could, PR firms that specialise in promoting
crowdfunding projects in places they know would succeed have been found to be more
successful than individuals. Crowdfunding will undoubtedly alter how money is generated for
different endeavours, whether they are personal or commercial, given the rate at which
technology is developing. According to studies, it might expand to be a $300 billion sector
over the next few years.

Benefits of Being An Investor

Many crowdfunding projects are centred on rewards; for as little as a payment of $10,
investors may be able to take part in the launch of a new product or receive a gift. For
startups or early-stage businesses that are prepared to advance but lack the funds to do so,
such as rolling out a product or service, crowdfunding offers another alternative. Earlier, a
business owner was subject to the whims and fancies of individual angel investors or bank
loan officials, frequently having to compromise on business goals in order to meet promises
that were made at the time of investing. This has transformed how investing is understood.
Through crowdfunding websites, it is now possible to present a company concept to a large
audience. In addition to giving your company the much-needed funds, a successful
crowdfunding campaign can build a foundation of clients who feel invested in the company's
success. It also makes for effective public relations; if many people are interested in a
product, there is a good probability that they will spread news about it, making it more widely
known.

Since it is so new, crowdfunding has the potential to transform businesses in ways that have
never been seen before. We have probably only touched the tip of the iceberg in terms of how
rapidly changing technology will affect company structures. It alters the rules by allowing
more individuals to be invested in the product, which in the modern digital age may also
redefine ownership.