Anyone who has cleared level I for IBP diploma

[Mahtab]

Page 18
15.3 Eligibility Conditions
15.3.1 Capital requirements
15.3.2 Other Conditions
Q.5 List different types of Non-banking Financial Institutions that function under the umbrella of Securities and Exchange Commission of Pakistan and what is the eligibility criteria for the establishment of a NBFC? (10) (Winter-2006)
15.4 Operations
15.4.1 Conditions for issuance of Certificates of investment or Deposit
15.4.2 Conditions for issuing Certificates of investment or Deposit
Chapter – XVI NBFC – Kinds and Scope of Work
16.1 Leasing – Terms and Conditions for undertaking Leasing Business
Q.7 or Explain concept of Lease. Who are the parties to the lease agreement? Also discuss the requirement of customer lease disclosures. (10) (Summer-2006)
16.2 Investment Finance Services
16.2.2 Capital Market Activities
16.2.3 Project Financing Activities
16.2.4 Corporate Finance Services
16.3.5 General Activities
16.3 Housing Finance Services
Q.1 Fill in the blanks (10) (Winter-2006)
i The housing finance shall be provided at a maximum Loan to Value ratio of ___________and a maximum of Income to Installment ratio of _____________.
16.3.1 Limit on individual Exposures
16.4.1 Venture Capital Investment – (A) – Terms and Conditions for Operating as a Venture Capital Company
16.4.2 Venture Capital Investment-(B) Eligibility Conditions of a Venture Capital Fund
16.4.3 Condition for grant of License
16.4.4 Maximum Exposure
16.5 investment Advisory Services- (A)
16.5.1 Investment Advisory Services–(B)an investment adviser of
a Closed –end scheme shall be……..
16.5.2 investment Advisory Services for Investment Companies (C)
16.2.3 No Closed-end Fund shall…….
16.6 Asset Management Services 16.6.1 Obligations of Asset Management Company
Chapter – XVII Prudential Regulations for NBFCs
17.1 For Consumer Financing
17.1.1 Definitions
17.1.2 Pre-Operations Measures
17.1.3 Operations
17.1.4 Disclosures / Ethics
17.1.5 R-I Facilities to Related Persons
17.1.6 R-2 Limit on Exposure against Total Consumer Financing
17.1.7 R-3 Total Financing Facilities to be Commensurate with the Income
17.1.8 R-4 General Reserve against Consumer Finance
17.1.9 R-5 Bar on transfer of facilities from one category to another to avoid Classifications
17.1.10 R-6 Margin Requirements
17.2 Regulations for Credit Cards
17.2.1 R-1 Safe Custody
17.2.2 R-2 Statement of Accounts
17.2.3 R-3 Unauthorized / wrong transactions
17.2.4 R-4 Partial Payment by Card Holder
17.2.5 R-5 Due Date for Payment
17.2.6 R-6 Maximum Card Limit
17.2.7 R-7 Classification and Provisioning
Q.4 State “Yes” or “No” give brief reason for your selection at the space provided below the question. (10) Summer-2006
iii. Credit cards are available for use in all establishments.
17.3 Regulations for Personal Loans
17.3.1 R-1 Per Party Limit
17.3.2 R-2 Hypothecation 17.3.3 R-3 Maximum Tenor of Loan
Q.2 Please write the alphabet of selected answer in the column. (10) (Summer-2006)
iv. The maximum tenure of auto loan finance is
A) 7 years B) 5 years C) 3 years D) None of the above

17.3.4 R-4 Minimum Repayment
17.3.5 R-5 Classification & Provisioning– Treatment of income provision to be made
Q.2 Please write the alphabet of selected answer in the given space (20) (Winter-2006)
xi A bank can take an exposure of the following percentage for non-fund based finance A) 20% B) 30% C) 35% D) None of the above
Q.1 Fill in the blanks (10) (Winter-2006)
iii Every NBFC is required to contribute not less than _______% of its after tax profit to its reserve fund until it equals to the paid up capital.
Q.1 Fill in the blanks (10) (Winter-2006)
iv A company shall be deemed to be a subsidiary of another company if the other company has power to elect and appoint more than _______% of its directors.
Q.3 State True or False give brief reason for your selection (30) (Winter-2006)
viii No NBFC can allow finance facilities for speculative business purposes.
Q.3 State True or False give brief reason for your selection (30) (Winter-2006
xxv Cash flow based financing is not as safe as it appears to be in so far repayment capacity of the borrower is concerned.
Chapter – XVIII Modaraba and Modaraba Management Company
18.1 Definitions
18.2 Appointment of Registrar
18.3 Registration a Must
18.4 Eligibility for Registration
18.5 Filing of an Application for Registration
18.6 Application for Floatation of Modaraba
18.7 Business to be in conformity with injunctions of Islam
18.8 Modaraba a Legal Person
Q.3 State True or False give brief reason for your selection (30) (Winter-2006)
ii A Modaraba is not a legal person and hence can neither sue nor can be sued in its own name.
18.9 Conditions applicable to Modaraba
18.10 Audit of Accounts and Preparation of Accounts and Reports
18.11 Conditions Applicable to Modaraba Company
18.12 Registrar’s Power to Cancel the Registration
18.13 Voluntary Winding up of a Modaraba
18.14 Winding up by Tribunal
18.15 Appeals
18.16 Punishment and Penalties
Q.7 Please describe Concept of Modaraba and Role it can play to support economy in Pakistan. In your opinion can this Mode of Financing Compete with Banking? (10) (Summer-2006)
Q.1 Fill in the blanks (10) (Winter-2006)
vi No Modaraba shall make investment in the shares of a list company of an amount exceeding _______% of its own equity or _______% of paid-up capital of the company whichever is less.
Q.1 Fill in the blanks (10) (Winter-2006)
ii For appointment of its Chief Executive a Modaraba must obtain approval of _______________.
Q.2 Please write the alphabet of selected answer in the given space (20) (Winter-2006)
viii Remuneration of a Modaraba company in respect of Modaraba floated by it cannot be more than A) 12% B) 10% C) 08% D) None of the above
Q.2 Please write the alphabet of selected answer in the given space (20) (Winter-2006)
ix A Modaraba must distribute
A) 100% B) 90% C) 80% of its net profit. D) None of the above
Chapter – XIX Laws Relating to Lending by Banks and Recovery
19.1 Definition
19.2 First Recovery Law -1979
19.3 The Latest Recovery Law – 2001
Q.1 Fill in the blanks (10)(Summer-2006) d. The latest law governing Recoveries of Finances by Financial institutions is
known as _________________________________________________________________;
Q.2 Please write the alphabet of selected answer in the given space (20) (Winter-2006)
iv The law governing recoveries of finances by financial institutions is known as
A) Financial Institutions (Recovery of Finances) Ordinance 2001;
B) Banking Companies (Recovery of Loans) Ordinance 1979
C) Banking Companies(Recovery of Loans, Advances, Credits & Finances) Act 1997 D) None of the above.
Q.3 State True or False, give brief reason for your selection (30) (Winter-2006
xvi A financial institution selling a property mortgaged to it as security on default is entitled to participate in public auction to purchase the mortgaged property.
19.4 Comparison between the 2001 Ordinance and the Previous Laws
19.4.1 Financial Institution
19.4.2 “Customer / Borrower”
19.4.3 Duty of Customer
19.4.4 Amicus Curie –
19.4.5 Filing of Plaint –
19.4.6 Facilitating Sale of Mortgaged Property
19.4.7 Immunities-
19.5 Comments on some important Sections
19.5.1 Scope of Application of Law
19.5.2 Re-Opening previous cases
19.5.3 Contents of Plaint –
19.5.4 Application for Leave to Defend –
19.5.5 Plaintiff’s Reply
19.5.6 Quicker Disposal of cases –
19.5.7 Selling Mortgaged Property
19.5.8 No injunctions –
19.5.9 Restraint on Disposal of Assets –
19.5.10 Restriction on Obtaining Blank Documents
Q.3 State True or False give brief reason for your selection at the space provided below the question (20) (Summer-2006)
xix. Bankers are not allowed to obtain blank documents from their borrowers
19.5.11 Decree Converted to Execution Proceedings
19.5.12 Summary Procedure
19.5.13 Penalties
19.5.14 Dishonor of Cheques in Payment of Debt
19.5.15 Remedy to Aggrieved Party
19.5.16 Transfer / Encumbrance of Assets –
19.6 Legal Cases relating to some of the important sections
19.6.1 Section 10 – as reported in CLD 2002 (986)
19.6.2 Section 15 - as reported in CLD 2004 (252 Quetta
19.6.3 Section 15 as reported in CLD 2004 LHR
Q.2 Please write the alphabet of selected answer in the given space (20) (Winter-2006)
ii A Plaint filed by a bank for recovery of its outstanding amount must mention A) Amount of finance availed by the defendant B) Amount of finance repaid by the defendant C) Amount of finance payable by the defendant
D) ALL of the above E) None of the above
Chapter – XX Legal Implications of Banks Various Securities
20.1 Securities – The securities may be in the form of
20.1.1 Lien
20.1.2 Hypothecation & Documents to be obtained
20.1.3 Pledge & Documents to be obtained
20.1.4 Mortgage
20.1.4.1 Types of Mortgage i.e. Equitable Mortgage
Q.3 State True or False give brief reason for your selection (30) (Winter-2006
xiv An ‘equitable mortgage’ means mortgage by deposit of title deeds.
Documents to be obtained
Formalities to be completed & Other Documents
20.1.4.2 Legal Mortgage and Registered Mortgage
20.1.5 Charge
20.1.5.1 Documents of Title to Goods
20.2 Form of Charge, Floating Charge
Q.2 Please write the alphabet of selected answer in the given space (20) (Winter-2006)
vi The authority with whom a company registers charge on assets given as security is A) Registrar, SECP B) Registrar Modaraba
C) Registrar of Societies D) None of the above
20.3 “Notional” Registered Mortgage –
20.6.5 Risks involved in “Token Mortgage
20.7 Guarantees
Q.4 State “Yes” or “No” give brief reason for your selection at the space provided below the question. (10) Summer-2006
iv. A Guarantee which extends to a series of transactions is called as General Guarantee.
Q.3 State True or False give brief reason for your selection (30) (Winter-2006)
v The foreign banks functioning in Pakistan are free to remove records to outside Pakistan relating to their business at branches since closed.
Q.3 State True or False give brief reason for your selection (30) (Winter-2006
xv If an ex-parte decree was passed without the service of process, the superior court may set aside the decree.
Q.3 State True or False give brief reason for your selection (30) (Winter-2006
xxix Subrogation means mistake of law.
Q. 6 Write brief notes on any four of the followings (12) (Winter-2006) iv) Ultra-Vires Act v) Indoor Management
Core Readings
1. Pakistan, Institute of Bankers Laws Relating to Financial Services
2. Pakistan, Institute of Bankers Lesson Notes on Banking Law & Practice (2 vol.)
3. Pakistan, Institute of Bankers Anti Money Laundering Measures
4. Pakistan, Institute of Bankers Practice and Law of Banking
Supplementary Readings 1. Dr. Asrar H. Siddiqui Practice & Law of Banking in Pak.(Royal Book Co., Karachi).
2. Govt.of Pak. i) Negotiable Instruments Act, 1881 ii) Banking Companies Ordinance, 1962. iii) Financial Institutions (Recovery of Finances) Ordinance, 2001
3. State Bank of Pakistan Prudential Regulations for Corporate/Commercial Banking
4. Pakistan, Institute of Bankers Legal Notes on Banking Transactions
5. Pakistan, Institute of Bankers Legal Decision Affecting Banks
6. Instructions notified/circularized by SBP and banks' head offices from time to time.