A public limited company decided to borrow additional funds the management of the company is not interested in dilution of control suggest a suitable type of securities raising the funds solve this case study.

Radhika Ltd. Has good growth prospects . So it si planning to expand their business. For this the company needs addtional funds. The finance manger reports that the company is not in a positionto bear extra burden of paying any fixed inancial charges like intrest or divident. They do not want to bear any flotation costs even. Alos, the equity shareholders insists not to issue further shares as there is risk of dilution of control. Suggest and expalin the source of finance most suitable for Radhika Ltd.

Ganesh Steel Ltd.' is a large and credit-worthy company manufacturing steel for the Indian market. It now wants to cater to the Asian market and decides to invest in new hi-tech machines. Since the investment is large, it requires long-term finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation cost. To meet the expenses of floatation cost the company decides to tap the money market. (a) Name the money-market instrument the company can use for the above purpose. (b) What is the duration for which the company can get funds through this instrument ? (c) State any other purpose for which this instrument can be used.

ABC Ltd. issued prosphectus for the subscription of its shares for Rs 500 crore in 2008. The issue was oversubscribed by 20 times. The company issued shares to all the applicants on pro-rata basis. Later SEBI inspected the prospectus and found some misleading statement about the management of the company in it. SEBI imposed a penalty of Rs 5 crore and banned its three executive directors for dealing in securities market for three years. Identify the function and its type performed by SEBI in the above case.

ABC Ltd. issued prospectus for the subscription of its shares for RS. 500 crores in 2008. The issue was oversubscribed by 20 times. The company issued shares to all the applicants on pro-rata basis. Later SEBI inspected the prospectus and found some misleading statement about the management of the company in it. SEBI imposed a penalty of RS. 5 crores and banned its three executive directors for dealing in securities market for three years. Identify the function and its type performed by SEBI in the above case.

Krishana Pvt. Ltd. Is facintg the shortages of long-term finance as it is a period of depression in the economy. The experts were consultd determine the source of finance the company should raise. One financial advisor, Mr. Ram, adviser that the company should use such a security on which it has a tax advantage and there is no dilution of controle of the shareholders. another finance specialist, Mr. Shiv advised that the company should not issued any debt or equity security but raise such a source of long-term finance which can be redeemed in easy instalments. Ouoting the relevant lines form the above para, identify and exaplain the source of finance sugested by the two specialists, Mr. Ram and Mr. Shiv