Previous Year Papers

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SEBI Grade A 2022

Phase 1 Paper 2 (Legal)
Memory based paper
SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

1. A obtains property from Z by saying ―Your child is in the hands of my gang, and will
be put to death unless you send us 1 lakh rupess‖.
In this situation, which of the following offence has been committed?

A. Robbery.
B. Extortion.
C. Kidnapping and Extortion.
D. Robbery along with element of Extortion.
E. Kidnapping and Robbery.

Ans. B.
This is an Illustration provided under s.390 of IPC, which distinguishes Robbery and
Extortion very clearly.

S.390. Robbery.—In all robbery there is either theft or extortion.

Illustration
(d) A obtains property from Z by saying ―Your child is in the hands of my gang, and will be
put to death unless you send us
ten thousand rupees‖. This is extortion, and punishable as such: but it is not robbery, unless
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Z is put in fear of the instant death of
his child.

2. Right to education is a _____

A. Fundamental right as per Art. 21 A.
B. Fundamental right as per Art 21.
C. Constitutional right.
D. Fundamental duty only.
E. Both C and D.

Ans. A.

As per the Constitution 86th Amendment Act, 2002 Art 21-A was inserted in the Constitution
of India to provide free and compulsory education for all children in the age group of 6-14 yrs
as a Fundamental right.

This topic was specifically covered in live class and also course videos.

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

3. Writ of Certiorari can be filed before? www.ixamBee.com

A. Supreme Court only.
B. High Court and Supreme Court.
C. Before all courts within the erritory of India.
D. Before Collector.
E. Both C and D.

Ans. B.

As per Art 32 and 226 of the Constitution, writ jurisdiction lies with the Constitutional Courts
i.e Supreme Court and High Court only. Writ of certiorari is one of the writs which can be
filed to obtain order of a Higher Court or Supreme Court giving directions to subordinate
court or tribunal as to the order passed by these authorities.

4. "Equal pay for Equal work " is provided under which part of the Constitution of India?

A. Part 1.
B. Part 3.
C. Part 4.
D. Part 4 A.
E. Part 5.

Ans. C

Art 39 under Part 4 of the Constitution provides for the principle of Equal pay for Equal work
for both men and women.

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

This provision ensures that both men and women have the right to an adequate means of
livelihood.

Topic discussed in Ixambee Notes as well as Live classes and course videos.

5. What is the meaning of the term "amicus curiae" ?

A. Friend
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B. Friend of judge
C. Friend of Court.
D. A Curious judge.
E. Both A and C.

Ans. C.
Amicus curiae literally means "friend of the court" defined as the legal brief when someone
who is not a party to case assists a court by offering information, expertise, or insight that
has a bearing on the issues in the case.

Amicus curaie – Similar question in SEBI Legal 2020 memory based paper

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

6. Who shall appoint employees of SAT?

A. SEBI.
B. Central Government.
C. SAT.
D. State Government.
E. Chairman of SEBI.

Ans. B. Central Government

As per s.155 of the SEBI Act

Staff of the Securities Appellate Tribunal.
(1) The Central Government shall provide the Securitied Appellate Tribunal with such
officers and employees as that Government may think fit.
(2) The officers and employees of the Securities Appellate Tribunal shall discharge
their functions under general superintendence of the Presiding officer.
(3) The salaries and allowances and other conditions of service of the officers and
employees of the Securities Appellate Tribunal shall be such as may be prescribed.
Central Government in consultation with the Chief Justice of India or his nominee.

SAT employees appointment – discussed in class + present in course video+ same

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question present in section test

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

7. SEBI Chairman is appointed by?

A. Appropriate Government.
B. Central Government.
C. Manager of RBI.
D. The President on advice of Central Government.
E. The President on advice of Reserve Bank of India and 3 whole time members of
SEBI.

Ans. B.

As per s.4 of SEBI Act.

Management of the Board.
(4) The Chairman and members referred to in clauses (a) and (d) of sub-section (1) shall be
appointed by the Central Government and the members referred to in clauses (b) and (c)
of that sub-section shall be nominated by the Central Government and the 9[Reserve Bank]
respectively.

8. A sessions court requires permission of High Court to pass _______?

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A. Sentence of death penalty.

B. Sentence of life imprisonment.
C. Sentence of life imprisonment with hard labour.
D. Sentence for Rigorous imprisonment with solitary confinement.
E. Any Sentence in offences having punishment of death.

Ans. A.

As per CrPC, Section 366 – Sentence of death to be submitted by Court of Session for
confirmation
1. When the Court of Session passes a sentence of death, the proceedings shall be
submitted to the High Court, and the sentence shall not be executed unless it is
confirmed by the High Court.
2. The Court passing the sentence shall commit the convicted person to jail custody
under a warrant.

Death penalty by session court- to be confirmed by High Court- similar question

discussed in class/topic discussed in class

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

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9. Certified copy of a document is an evidence? If yes then which type of evidence?

A. Not an evidence.
B. Certified evidence.
C. Oral evidence.
D. Primary Evidence.
E. Secondary Evidence.

Ans. E.

As per the Indian Evidence Act, 1872 S.63. Secondary evidence

Secondary evidence means and includes—

(1) certified copies given under the provisions hereinafter contained;

(2) Copies made from the original by mechanical processes which in themselves
ensure the accuracy of the copy, and copies compared with such copies.

(3) copies made from or compared with the original ;

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

(4) counterparts of documents as against the parties who did not execute them;

(5) oral accounts of the contents of a documents given by some person who has
himself seen it.

Certified copies is secondary evidence – concept touched in Chapter test/ mock

Test/Explanation

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10. Arrest in cognizable cases can be______?

A. Made without warrant.

B. Made with warrant only.
C. Made with warrant for offences above 7 years.
D. Made without warrant for offences trivial in nature.
E. None of the above.

Ans. A.
As per CrPC-
S. 151. Arrest to prevent the commission of cognizable offences.

(1) A police officer knowing of a design to commit any cognizable offence may arrest, without
orders from a Magistrate and without a warrant, the person so designing, if it appears to
such officer that the commission of the offence cannot be otherwise prevented.

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

(2) No person arrested under sub- section (1) shall be detained in custody for a period
exceeding twenty- four hours from the time of his arrest unless his further detention is
required or authorised under any other provisions of this Code or of any other law for the
time being in force.
As per CrPC s.2
(c) ―cognizable offence‖ means an offence for which, and ―cognizable case‖ means a case in
which, a police officer may, in accordance with the First Schedule or under any other law for
the time being in force, arrest without warrant.

Cognizable offence - Question from same topic present in Section Test

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11. Which of the following means Audi Alteram Partem?

A. Listen to the other side.

B. Right of fair hearing.
C. Right to obtain a reasoned decision.
D. A and B.
E. All of the above.

Ans. D.
The principle of Audi Alteram Partem is the basic concept of the principle of natural justice.
This doctrine states the no one shall be condemned unheard. This ensures a fair hearing
and fair justice to both the parties. Under this doctrine, both the parties have the right to
speak. No decision can be declared without hearing both the parties. The aim of this
principle is to give an opportunity to both the parties to defend themselves.

Audi Alterum Partem- same topic question in Mock Test

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

12. What is a contract as per Indian Contract Act, 1872

A. Agreement as per law.
B. Agreeement enforceable by law.
C. Agreement enforceable.
D. Law abiding agreement. www.ixamBee.com

E. Offer + Acceptance

Ans. B.
As per s.2(h) of Indian Contract Act, 1872 a contract is "an agreement enforceable by
law‖.

13. Substitution of old contract with new one______?

A. Is bad in law.
B. Is erroneaous but lawful.
C. Is novation of contract.
D. Is merger.
E. Is assisgnment.

Ans. C.

As per s.62.of Contract Act, 1872. Effect of novation, rescission, and alteration of
contract.—If the parties to a contract agree to substitute a new contract for it, or to
rescind or alter it, the original contract need not be performed. —If the parties to a
contract agree to substitute a new contract for it, or to rescind or alter it, the original
contract need not be performed."

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

14. Contract made by a person under Undue influence is:

A. Void.
B. Voidable at the option of party whose consent was so obtained.
C. Void ab initio.
D. Valid.
E. Valid subjected to express agreement of party.

Ans. B.
Section 19A. Power to set aside contract induced by undue influence
When consent to an agreement is caused by undue influence, the agreement is a
contract voidable at the option of the party whose consent was so caused.
Contract is an agreement freely entered into between the parties. But when consent
to an agreement is obtained by undue influence, the contract is voidable at the option
of the party whose consent was so obtained.

15. Which section of contract act defines proposal?

A. S.2 (a)
B. S.2 (h)
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C. S.2 (i)
D. S. 2 (j)
E. S. 2 (m)

Ans. A.
According to the Indian Contract Act 1872, proposal is defined in Section 2 (a) as
When one person signifies to another his willingness to do or to abstain from doing
anything, with a view to obtaining the assent of that other to such act or abstinence,
he is said to make a proposal.

16. Can a dumb person be a witness?

A. No.
B. Can be as per s. 19 of IEA.
C. Can be a hostile witness.
D. Can be a witness.
E. Can be as per s.119 of IEA.

Ans. E.
As per Indian Evidence Act, 1872 S.119. Dumb witnesses
A witness who is unable to speak may give his evidence in any other manner in
which he can make it intelligible, as by writing or by signs; but such writing must be
written and the signs made in open Court. Evidence so given shall be deemed to be
oral evidence.

Dumb witness- same topic question in Section Test/ Chapter Test

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

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17. Confession in front of police officer when valid?

A. Not valid under any circumstances.
B. Valid when corroborated with other substantial evidence.
C. Weak evidence.
D. Valid if in presence of Magistrate.
E. Valid if taken in front of an independent witness.

Ans. D.
Section 25 in The Indian Evidence Act, 1872

S.25. Confession to police officer not to be proved.—No confession made to a police

officer, shall be proved as against a person accused of any offence.—No confession
made to a police officer1, shall be proved as against a person accused of any
offence."

Confession in front of police - topic discussed in class

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

18. A decree holder is:

A. Any person in whose favour a decree has been passed.
B. Any person in whose favour an interim relief is granted.
C. Any person who is in debt by the decree.
D. Any person against whom decree is passed.
E. Any person who does not get www.ixamBee.com
decree executed.

Ans. A.
As per CPC s.2 (3) "decree-holder" means any person in whose favour a decree has
been passed or an order capable of execution has been made;

Important terms discussed in class

19. A Lessee may remove his property attached to the earth:

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

A. At anytime after determination of lease.

B. At anytime when he is in possession of property.
C. At anytime before he leaves possession of property.
D. At anytime after after he leaves possession of property.
E. A and B or C.

Ans. E.
As per s.108 (h) of Transfer of Property Act, 1882-
he lessee may [even after the determination of the lease] remove, at any time [whilst
he is in possession of the property leased but not afterwards] all things which he has
attached to the earth; provided he leaves the property in the state in which he
received it;

Lessee rights discussed in class.

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20. When does an arbitration proceeding actually commence?

A. Request for dispute to be referred to arbitration is received by respondent.
B. Request for dispute to be referred to arbitration is made.
C. Dispute is referred to arbitration.
D. When parties appear before arbitral tribunal
E. When 1st hearing takes place.

Ans. A.

As per s.21 of The Arbitration and Conciliation Act, 1996-

―Unless otherwise agreed by the parties, the arbitral proceedings in respect of a

particular dispute commence on the date on which a request for that dispute to
be referred to arbitration is received by the respondent.‖

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

Topic discussed in class and also marked as important are from where
questions can be put.

21. In which of the following cases can courts intervene in an arbitral proceeding?

A. When arbitration is completed.www.ixamBee.com

B. When arbitration fails.
C. When it is proved that one of the party was under some incapacity.
D. When arbitral order is signed.
E. In no case courts shall intervene in an arbitral proceeding.

Ans. C.

As per The Arbitration and Conciliation Act, 1996

S.34 Application for setting aside arbitral award. —
(1) Recourse to a Court against an arbitral award may be made only by an application for
setting aside such award in accordance with sub-section (2) and sub-section (3).
(2) An arbitral award may be set aside by the Court only if—
(a) the party making the application furnishes proof that—
(i) a party was under some incapacity, or
(ii) the arbitration agreement is not valid under the law to which the parties have subjected it
or, failing any indication thereon, under the law for the time being in force; or
(iii) the party making the application was not given proper notice of the appointment of an
arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or
(iv) the arbitral award deals with a dispute not contemplated by or not falling within the terms
of the submission to arbitration, or it contains decisions on matters beyond the scope of the
submission to arbitration:
Provided that, if the decisions on matters submitted to arbitration can be separated from
those not so submitted, only that part of the arbitral award which contains decisions on
matters not submitted to arbitration may be set aside; or
(v) the composition of the arbitral tribunal or the arbitral procedure was not in accordance
with the agreement of the parties, unless such agreement was in conflict with a provision of

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

this Part from which the parties cannot derogate, or, failing such agreement, was not in
accordance with this Part; or…………..

Topic discussed as important topic in class and also provided in course videos,
notes.

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

22. Which of the following is a part of Fast track arbitration?

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A. Parties may omit oral hearing.
B. Parties only conduct oral hearing..
C. There are only two arbitrators appointed.
D. Procedure is completed in 15 days.
E. Procedure is completed in 3 months.

Ans. A.

As per s. 29B of The Arbitration and Conciliation Act, 1996

29B. Fast track procedure.-- (1) Notwithstanding anything contained in this Act, the parties to
an arbitration agreement, may, at any stage either before or at the time of appointment of the
arbitral tribunal, agree in writing to have their dispute resolved by fast track procedure
specified in sub-section (3). (2) The parties to the arbitration agreement, while agreeing for
resolution of dispute by fast track procedure, may agree that the arbitral tribunal shall consist
of a sole arbitrator who shall be chosen by the parties. (3) The arbitral tribunal shall follow
the following procedure while conducting arbitration proceedings under sub-section (1):-- (a)
The arbitral tribunal shall decide the dispute on the basis of written pleadings, documents
and submissions filed by the parties without any oral hearing; (b) The arbitral tribunal shall
have power to call for any further information or clarification from the parties in addition to
the pleadings and documents filed by them; (c) An oral hearing may be held only, if, all the
parties make a request or if the arbitral tribunal considers it necessary to have oral hearing
for clarifying certain issues; (d) The arbitral tribunal may dispense with any technical
formalities, if an oral hearing is held, and adopt such procedure as deemed appropriate for
expeditious disposal of the case.

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

Discussed in the class and also in course videos as an important topic and
questionable area.

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23. What is the age of a Juvenile offender, as provided under CrPC?

A. 16 years.
B. 21 years.
C. 18 years.
D. 16 years for males & 18 years for females.
E. 16 years for females & 18 years for males.

Ans. A.
As per CrPC-
S. 27. Jurisdiction in the case of juveniles.—Any offence not punishable with death or
imprisonment
for life, committed by any person who at the date when he appears or is brought before the
Court is under
the age of sixteen years, may be tried by the Court of a Chief Judicial Magistrate, or by any
Court specially empowered under the Children Act, 1960 (60 of 1960), or any other law for
the time being in force providing for the treatment, training and rehabilitation of youthful
offenders.

Juvenile - Similar question Discussed in class

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

24. As per the Specific Relief Act a person dispossessed of an immovable property
can file a suit within____________

A. 6 months from dispossession.

B. 3 months from dispossession.
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C. 12 months from dispossession.
D. 3 years from dispossession.
E. 12 years from dispossession.

Ans. A.
As per The Specific Relief Act, 1963,
S. 6 Suit by person dispossessed of immovable property.—
(1) If any person is dispossessed without his consent of immovable property otherwise than
in due course of law, he or any person claiming through him may, by suit, recover
possession thereof, notwithstanding any other title that may be set up in such suit.
(2) No suit under this section shall be brought—
(a) after the expiry of six months from the date of dispossession; or
(b) against the Government.
(3) No appeal shall lie from any order or decree passed in any suit instituted under this
section, nor shall any review of any such order or decree be allowed.
(4) Nothing in this section shall bar any person from suing to establish his title to such
property and to recover possession thereof.

Snapshot -Similar Question asked in Section Test & Chapter Test of SEBI Legal
Course of ixamBee

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

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25. Specific Relief is granted for?

A. Specific Performance.
B. Compensation.
C. Damages.
D. Both A and B.
E. All of the above.

Ans. A
Specific Relief Act provides equitable remedy/relief which means the exact fulfilment of an
obligation. Under this the court issues an order requiring a party to perform a specific act i.e.,
directs performing the contract as per the terms and conditions as agreed between the
parties rather than the payment of compensation or damages for the non-performance of the
contract. Thus, the remedy granted is the very same thing to which the aggrieved is entitled
to, rather than money compensation in lieu thereof.

Snapshot - Similar Question discussed in SEBI Legal Live class of ixamBee

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

26. What is the minimum age of a director?

A. 22 years.
B. 21 years.
C. 35 years. www.ixamBee.com

D. 45 years.
E. 18 years.

Ans. B.
As per Companies Act,
Section 196(3)(a) provides that, the age of MD/WTD/Manager should not be below 21 years
& should not be 70 years or more.

Snapshot from study notes of the ixamBee SEBI Legal course covering topic in detail

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

27. A copy of MOA / AOA can be given, to the members on request, within _____?

A. 14 days of request.
B. 7 days of request.
C. 30 days of request.
D. 21 days of request.
E. Maximum of 2 months of request.

Ans. B.

Section 17. Copies of memorandum, articles, etc., to be given to members.

(1) A company shall, on being so requested by a member, send to him within seven days of
the request and subject to the payment of such fees as may be prescribed, a copy of each of
the following document, namely: —
(a) the memorandum;
(b) the articles; and
(c) every agreement and every resolution referred to in sub-section (1) of section 117, if and
in so far as they have not been embodied in the memorandum or articles.

Snapshot from study notes of the ixamBee SEBI Legal course covering topic
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28. What is the notice period for the Annual General Meeting of a company?

A. 21 days.
B. 20 days.
C. 30 days.
D. 60 days.
E. 90 days.

Ans. A
Section 101.Notice of meeting. (1) A general meeting of a company may be called by giving
not less than clear twenty-one days' notice either in writing or through electronic mode in
such manner as may be prescribed

Snapshot from study notes of the ixamBee SEBI Legal course covering topic in detail

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

29. First meeting of a company is held within_______ days of its incorporation?

A. 60 days.
B. 30 days.
C. 15 days.
D. 90 days.
E. 7 Days. www.ixamBee.com

Ans. B.

As per Companies Act, 2013, S. 173 (1)- every company shall hold the first meeting of the
Board of Directors within thirty days of the date of its incorporation and thereafter hold a
minimum number of four meetings of its Board of Directors every year in such manner that
not more than one hundred and twenty days shall intervene between two consecutive
meetings of the Board.

Snapshoot - Similar Question covered in Section Test of SEBI Legal Course of ixamBee

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

30. DIN is allotted to a Director of a company by whom?

A. Appropriate government.
B. State Government.
C. Central Government
D. Company Law Board.
E. Promoters.

Ans. C.
As per Companies Act, 2013-
Section 154. Allotment of Director Identification Number- The Central Government shall,
within one month from the receipt of the application under section 153, allot a Director
Identification Number to an applicant in such manner as may be prescribed.

Snapshot from study notes of the ixamBee SEBI course covering topic

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Snapshot -Section Test of ixamBee SEBI Legal Course covering topic

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

31. In case a company makes a default in transferring shares to the IEPF Fund, such
company shall be liable for a penalty of __________________

A. One lakh rupee

B. One lakh rupee, subject to a maximum of ten lakh rupees
C. One lakh rupee, if continuing failure, further penalty of five hundred rupees for each
day, subject to a maximum of ten lakh rupees
D. Not be less than five lakh rupees but may extend to twenty-five lakhs rupees
E. Not be less than ten lakh rupees but may extend to twenty-five lakhs rupees
Ans. C

As per section 124 (7) of the Companies Act, 2013, if a company fails to comply with any of
the requirements of this section, such company shall be liable to a penalty of one lakh
rupees and in case of continuing failure, with a further penalty of five hundred rupees for
each day after the first during which such failure continues, subject to a maximum of ten lakh
rupees and every officer of the company who is in default shall be liable to a penalty of
twenty-five thousand rupees and in case of continuing failure, with a further penalty of one
hundred rupees for each day after the first during which such failure continues, subject to a
maximum of two lakh rupees
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Snapshoot - Topic covered in Amendment Notes of SEBI Course Legal ixamBee

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

32. A company may issue fully paid-up bonus shares to its members, in any manner
whatsoever, out of-
A. Its free reserves;
B. the securities premium account;
C. the capital redemption reserve account.
D. A and B only.
E. A, B and C.

Ans. E.
As. 63 of the Companies Act, 2013-
A company may issue fully paid-up bonus shares to its members , in any manner
whatsoever, out of—
(i) its free reserves ;
(ii) the securities premium account; or
(iii) the capital redemption reserve account:
Provided that no issue of bonus shares shall be made by capitalising reserves created by
the revaluation of assets.
Snapshoot - Topic covered in Live class for SEBI Legal Course of ixamBee

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33. Which of the following statements is true about Red herring prospectus?
A. Issued by a company proposing to make an offer of securities.
B. Issued to attract different investors.
C. Issued prior to issue of a prospectus.
D. A and B are true.
E. A, B and C are true.

Ans. E.

As per Section 32 of Companies Act, 2013, a company proposing to make an offer of

securities may issue a red herring prospectus prior to the issue of a prospectus. It is
basically a prospectus which is used in the public issue to attract different investors.

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

Snapshoot - Topic covered in Live class of SEBI Legal Course ixamBee

34. When a company needs additional capital and keeps the voting rights of shareholders
proportionally balanced, the company_______?

A. Issues rights shares.

B. Issues red herring prospectus.
C. Issues prospectus. www.ixamBee.com

D. Issues bonus shares.

E. Issues debentures.
Ans. A.
Section 62. Further issue of share capital- (1) Where at any time, a company having a share
capital proposes to increase its subscribed capital by the issue of further shares, such
shares shall be offered— (a) to persons who, at the date of the offer, are holders of equity
shares of the company in proportion, as nearly as circumstances admit, to the paid-up share
capital on those shares by sending a letter of offer

35. Sweat equity shares cannot be given to ......

A. Public at large
B. Employees
C. Directors
D. Either to b or c
E. Both a & d

Ans.
A. Public at large
As per Section 2(88) of Companies Act, 2013 defines sweat equity share as the equity
shares issued by a company to its directors or employees at a discount or for consideration
other than cash, for providing their know-how or in the nature of Intellectual property or value
addition to the company.

Snapshot from study notes of the ixamBee SEBI Legal course covering topic

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

36. Which is the appellate tribunal for hearing the appeals from the orders of the National
Company Law Tribunal?

A. No tribunal.
B. Securities appellate tribunal.
C. National Company Law Appellate Tribunal.
D. Central Administrative Tribunal.
E. Appellate Tribunal.

Ans. C.
As per Companies Act 2013
s.2 (4) ―Appellate Tribunal‖ means the National Company Law Appellate Tribunal
constituted under section 410.
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Snapshot from study notes of the ixamBee SEBI Legal course Previous Year Memory Based
Paper

37. Depositories Act is applicable to?

A. Whole of India.
B. Depositories in India only.
C. Depositories outside India also

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

D. Depositories owned by foreign nationals but situated in India.

E. Depositories owned by Indians but situated in India.

Ans. A.
As per Depositories Act, 1996, S.1. Short title, extent and commencement.
(1) This Act may be called the Depositories Act, 1996.
(2) It extends to the whole of India.
(3) It shall be deemed to have come into force on the 20th day of September, 1995.

Depository Act extends to the whole of India – concept covered in notes

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38 Who can authenticate the documents filed by a company to the Registrar?

A. Registrar only.
B. Directors.
C. Auditors of the company.
D. A and C only.
E. Any person.

Ans. B.
As per Rule 8. Authentication of documents of Companies (Registration Offices and Fees)
Rules, 2014 -An electronic form shall be authenticated by authorized signatories using digital
signature.
It is the responsibility of the authorized signatories or Professional signing the form to ensure
that all the documents and relevant information related to the document is authentic.

39. As per the Companies Act, 2013 a non-profit organization can get itself registered
without the addition of the word____________, to the satisfaction of the Central Government

A. S.8 company.
B. S. 25 company.
C. Private limited company.
D. Either A or B.
E. All the above.

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

Ans. C.
Section 8 Formation of companies with charitable objects, etc. -(5) Where it is proved to the
satisfaction of the Central Government that a limited company registered under this Act or
under any previous company law has been formed with any of the objects specified in clause
(a) of sub-section (1) and with the restrictions and prohibitions as mentioned respectively in
clauses (b) and (c) of that sub-section, it may, by licence, allow the company to be registered
under this section subject to such conditions as the Central Government deems fit and to
change its name by omitting the word ―Limited‖, or as the case may be, the words ―Private
Limited‖ from its name and thereupon the Registrar shall, on application, in the prescribed
form, register such company under this section and all the provisions of this section shall
apply to that company

Snapshot - Topic covered in Live class of SEBI Legal Course ixamBee

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40. A depository requires certificate for commencement of business from _____?

A. SEBI.
B. Central Government.
C. State Government.
D. Appropriate Government.
E. NCLAT.

Ans. A.
Section 3. Certificate of commencement of business by depositories.
(1) No depository shall act as a depository unless it obtains a certificate of commencement
of business from the Board.

Depositories Act- Certificate of commencement of business – Similar question in

SEBI Legal 2020 memory based paper/ Section test/mock test

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

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41. What are the qualifications of a Presiding Officer of SAT?

A. Shall be a Judge of a High Court for atleast 7 years.
B. Shall be a Judge of a Supreme Court.
C. Shall be Chief Justice of a High Court.
D. A or B or C.
E. B or C.

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

Ans. D.

As per s.15M. Qualification for appointment as Presiding Officer, Judicial Member and
Technical Member.-
- A person shall not be qualified for appointment as the Presiding Officer or a Judicial
Member or a Technical Member of the Securities Appellate Tribunal, unless he

(a) is, or has been, a Judge of the Supreme Court or a Chief Justice of a High Court or a
Judge of High Court for at least seven years, in the case of the Presiding Officer; and
(b) is, or has been, a Judge of High Court for at least five years, in the case of a Judicial
Member; or
(c) in the case of a Technical Member
(i) is, or has been, a Secretary or an Additional Secretary in the Ministry or Department of
the Central Government or any equivalent post in the Central Government or a State
Government; or
(ii) is a person of proven ability, integrity and standing having special knowledge and
professional experience, of not less than fifteen years, in financial sector including securities
market or pension funds or commodity derivatives or insurance.

Qualifications of Presiding officer of SAT – similar question present in chapter test

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

42. If the Articles of the company does not provide for the appointment of the first director
__________ shall be deemed to be the first directors of the company?
A. Promoters.
B. Shareholders.
C. Subscribers to Memorandum.
D. Board of Directors.
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E. Founders.

Ans. C.
Section 152. Appointment of directors- (1) Where no provision is made in the articles of a
company for the appointment of the first director, the subscribers to the memorandum who
are individuals shall be deemed to be the first directors of the company until the directors
are duly appointed and in case of a One Person Company an individual being member shall
be deemed to be its first director until the director or directors are duly appointed by the
member in accordance with the provisions of this section.
Snapshot - Topic covered in Live class of SEBI Legal Course ixamBee

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

43. The court may compel attendance ofwww.ixamBee.com

any person to whom a summons has been issued,
for this purpose a maximum fine can be imposed to the tune of-

A. 5000 rs.
B. 1000 rs.
C. 3000 rs.
D. 2000 rs.
E. 500 rs.

Ans. A.
As per CPC.
s. 32. Penalty for default.—The Court may compel the attendance of any person to whom a
summons has been issued under section 30 and for that purpose may—
(a) issue a warrant for his arrest;
(b) attach and sell his property;
(c) impose a fine upon him 1 [not exceeding five thousand rupees];
(d) order him to furnish security for his appearance and in default commit him to the civil
prison

CPC- fine of Rs 5000 in default of attendance – same question in Section Test

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

44. Every company shall have at least one director who stays in India for a total period of not
less than one hundred and eighty-two days ___________________
A. During the Financial Year
B. During the Previous Financial Year
C. During the Previous Calendar Year
D. During the Preceding three Financial Years
E. Either B or C
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As per Companies Act, 2013, Section 149. Company to have Board of Directors -(3) Every
company shall have at least one director who stays in India for a total period of not less than
one hundred and eighty-two days during the financial year:
Provided that in case of a newly incorporated company the requirement under this sub-
section shall apply proportionately at the end of the financial year in which it is incorporated.
Snapshot - Topic covered in Live class of SEBI Legal Course ixamBee

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

45. When can Debentures be converted into shares?

A. At anytime
B. At the time of redemption
C. Before the time of redemption
D. No such option is available
E. At the discretion of the debenture-holder

Ans. B
Section 71. Debentures - (1) A company may issue debenture with an option to convert such
debentures into shares, either wholly or partly at the time of redemption: Provided that the
issue of debentures with an option to convert such debentures into shares, wholly or partly,
shall be approved by a special resolution passed at a general meeting.

Snapshot - Topic covered in Live class of SEBI Legal Course ixamBee

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46. In a suit for specific performance of contract, Compensation______

A. Can be claimed as damages.
B. Cannot be claimed.
C. Can be claimed in addition to specific performance for breach of contract.
D. Can be claimed in substitution of specific performance for breach of contract.
E. Either C or D.

Ans. E.

As per S. 21 in The Specific Relief Act, 1963

21. Power to award compensation in certain cases.—

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

(1) In a suit for specific performance of a contract, the plaintiff may also claim compensation
for its breach, either in addition to, or in substitution of, such performance.

47. As per the SEBI Act the questions which come up before the meeting of the Board shall
be decided by majority votes of the members present and voting, however, in the event of
equality of votes ____________shall have casting vote
A. President
B. Chairman
C. Person presiding the meeting in the absence of the chairman
D. Both A and C
E. Either B or C

Ans. E.
As per SEBI Act –
S. 7(3) All questions which come up before any meeting of the Board shall be decided by a
majority votes of the members present and voting, and, in the event of an equality of votes,
the Chairman, or in his absence, the person presiding, shall have a second or casting vote

Topic discussed in Course Video

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48. Restrictive Trade Practice means?

A. A trade practice which tends to bring about manipulation of price.
B. A trade practice which tends to bring about manipulation in conditions of delivery.
C. A trade practice which effects flow of supplies in market relating to goods or services in
such a manner to impose on customer justified costs.
D. A and B.
E. A, B and C.

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

Ans. D.
A restrictive trade practice means a trade practice which tends to bring about manipulation of
price or conditions of delivery or to affect flow of supplies in the market realting to goods or
services in such a manner as to impose on the consumer unjustified costs or restrictions and
shall include-

(a) delay beyond the period agreed to by a trader in supply of such goods or in providing the
services which has led or is likely to lead to rise in the price.

(b) any trade practice which requires a consumer to buy, hire or avail of any goods or, as the
case may be, services as condition precedent to buying hiring or availing of other goods or
services.

Restrictive Trade practice definition – same topic question in SEBI Legal 2020
memory based paper

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49. If Judgment Debtor obstructs delivery of possession of property______?

A. Court can order detention of Judgment debtor.
B. Court can make an order for detention of JD at the instance of DH.
C. DH has to make an application for arrest of JD.
D. A and B.

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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

E. Any of the above mentioned modes can be adopted.

Ans. B.

As per CPC S. 51. Powers of Court to enforce execution.—

Subject to such conditions and limitations as may be
prescribed, the Court may, on the application of the decree-holder, order execution of the
decree—
(a) by delivery of any property specifically decreed;
(b) by attachment and sale or by the sale without attachment of any property;
(c) by arrest and detention in prison [for such period not exceeding the period specified in
section 58,
where arrest and detention is permissible under that section];
(d) by appointing a receiver; or
(e) in such other manner as the nature of the relief granted may require.

This topic discussed as important in Course Video as well as live class.

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50. When a contract has been broken compensation for any loss or damage caused to an
aggrieved party shall be given for ______________
A. The loss that naturally arose in the usual course of things from such breach
B. Compensation is not to be given for any remote and indirect loss or damage sustained by
reason of the breach
C. The loss which the parties knew, when they made the contract, to be likely to result from
the breach of it
D. Either A or C
E. Either of the above

Ans. D.
As per Contract Act, 1872
S. 73. Compensation for loss or damage caused by breach of contract
When a contract has been broken, the party who suffers by such breach is entitled to
receive, from the party who has broken the contract, compensation for any loss or damage
caused to him thereby, which naturally arose in the usual course of things from such breach,
or which the parties knew, when they made the contract, to be likely to result from the
breach of it.
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SEBI 2022 Phase 1 Paper 2 (Legal) - Memory based paper

Such compensation is not to be given for any remote and indirect loss or damage
sustained by reason of the breach.

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