LLB Final Semester – 2nd Internal Notes

I&S MCQs

An order passed by the A.O. can be challenged before SAT
Every DP is required to be registered with SEBI
A non-banking financial institution may be in the form of NBFI
The limitation period to file an appeal before the Appellate Tribunal constituted under FEMA is
45 days – Section 19(2) – Appellate Tribunal,
60 days – Section 35 – High Court (on question of law only).
The enactment passed by Parliament to prevent undesirable transactions in the securities market is SCRA
Segregation of ownership and management from trading rights of members from a stock exchange is called Demutualisation
Three categories of intermediaries are recognised by the board to act as DPs:
Banks, Financial Institutions, SEBI-registered Trading Members
Funds to SEBI shall be granted by Central Government
All the intermediaries associated with the securities market should obtain a Registration Certificate
A stock exchange desiring to get recognition must make an application to SEBI

Fill in the Blanks

Account of SEBI shall be audited by CAG (Comptroller and Auditor General)
Trading facility offered by a recognised stock exchange outside its state of operation is called Additional Trading Floor
SEBI has recognised three categories of institutions to act as DPs:
Bank, SEBI-registered Trading Member, Financial Institutions
Every depository company has to obtain a CCB (Certificate for Commencement of Business)
All sums realised by way of penalties shall be credited to the Consolidated Fund of India (CFI)
An aggrieved party can represent a case before SAT, which may be an individual or a company through its authorised representative
A Depository Company resembles a Bank
A Nidhi Company is a company notified under Section 406 of the Companies Act and carries on the business of NBFI
An Asset Management Company is a financial institution that carries the business of acquisition of securities as its principal business
A Derivative is a financial instrument whose value is derived from an underlying asset

1. Powers & Functions of SAT (Securities Appellate Tribunal)

Statutory body under Section 15K of the SEBI Act, 1992.
Hears appeals against orders passed by SEBI, IRDAI, and PFRDA.

Powers:

Hear and decide appeals against penalties or directions from SEBI & other regulators.
Can summon witnesses, enforce attendance, and compel documents.

Functions:

Acts as a quasi-judicial authority for resolving securities disputes.
Ensures fair hearings and quick redressal to aggrieved investors/intermediaries.
Can modify, set aside, or uphold SEBI decisions.
Appeals from SAT go to the Supreme Court.

2. Powers & Functions of SEBI (Securities and Exchange Board of India)

Established under the SEBI Act, 1992.
Objective: Investor protection and market regulation.

Powers:

Register and regulate intermediaries (brokers, mutual funds, etc.).
Investigate violations, impose penalties, issue directions.
Conduct searches, seizures, and ban trading.

Functions:

Regulatory: Controls stock exchanges, insider trading, takeovers.
Developmental: Investor education, intermediary training.
Protective: Prevents frauds, unfair trade, market manipulation.

SEBI combines legislative, executive, and judicial powers in securities law.

3. Insider Trading

Trading of securities based on unpublished price-sensitive information (UPSI) by someone with access to it.

Regulated by:

SEBI (Prohibition of Insider Trading) Regulations, 2015

Key Points:

Insider: Anyone with direct or indirect access to UPSI (employee, director, consultant).
UPSI: Includes mergers, financial results, KMP changes, dividends, etc.
Prohibited: Trading while in possession of UPSI or leaking it unlawfully.

Penalty:

Up to ₹25 Crores or 3x profit, and imprisonment up to 10 years.

Ensures transparency and fairness in the securities market.

4. Primary & Secondary Markets (Capital Markets)

Primary Market:

Known as the New Issue Market.
Companies issue fresh securities to raise capital via IPOs, rights issues, etc.

Secondary Market:

Known as Stock Market.
Investors trade existing securities through exchanges like NSE/BSE.

Key Differences:

Primary: Fund-raising by companies; no trading.
Secondary: Provides liquidity and pricing for existing securities.

Both markets are essential for capital formation and investment growth.

5. ED under FEMA (Enforcement Directorate)

ED enforces FEMA, 1999, and PMLA, 2002.
Investigates illegal foreign exchange transactions and money laundering.

Under FEMA:

Handles violations like unauthorized foreign investments/remittances.
Can search, seize, arrest, and attach properties.

Powers:

Issue summons, record statements, freeze accounts/assets.
File cases before FEMA Adjudicating Authority and Appellate Tribunal.

Ensures compliance with India’s foreign exchange laws and protects economic integrity.

Information & Technology

MCQs

A computer programme can be protected by All of the above
Grant of permission to use some of the rights in copyright is called Licensing
Penalty in cyber terrorism is Life Imprisonment
Compounding of offences is not allowed under IT Act under certain conditions – All of the above
- Includes imprisonment for 3 years, financial issues, and crimes involving minors
Cybercrime where attackers trick individuals into revealing sensitive information (e.g., passwords or personal data) by disguising themselves as a trusted entity is called Phishing
Section of the IT Act for identity theft is 66C
First publication vs Rural Telecom Services Company, related to copyright work
A computer programme per se (or algorithm) is not patentable under U/S (k) of Patent Act
Recognition of electronic record as primary evidence is provided under Section 57 of the BSA
Role of WIPO in domain name dispute resolution is All of the above

Fill in the Blanks

A cybercrime in which a website is disabled, shut down, or disrupted by excessive traffic is called a Denial of Service (DoS) Attack
The National Nodal Agency shall be responsible for all measures relating to protection of critical information infrastructure
Sending multiple unsolicited messages to a large number of recipients for commercial purposes is known as Spamming
Indian Computer Emergency Response Team (ICERT) serves as a Nodal Agency for Cyber Incident Response
The act of gaining unauthorised access to a computer system is called Hacking
Malicious software that spreads in a computer system and causes damage to data is known as a Virus
Shreya Singhal vs Union of India is a landmark case related to Section 66-A
Intellectual Property Rights (IPR) in software programmes can be protected by Copyright and Patent
Cyber Stalking is covered under Section 78 of the BNS
Cyber Terrorism is an offence under Section 66F of the IT Act

Shrink Wrap Contract

A shrink wrap contract is a software license agreement which becomes enforceable once the user opens the packaging (physical or digital) and uses the software.
These are non-negotiable, pre-drafted agreements, commonly seen in software CDs or digital downloads.
Legally treated as click-wrap or browse-wrap agreements in modern e-commerce.
Courts generally uphold them if the user had notice and agreed to terms implicitly.
Example: Installing software after seeing a license agreement during setup.

Relevance: Enforceability under Contract Law and IT Act, 2000 principles of electronic records and consent.

Copyright in IT

Copyright protects original literary, dramatic, musical, and artistic works, including computer programs, under the Copyright Act, 1957.
Section 2(o) recognizes computer programs as “literary works”.
The author or developer holds exclusive rights over reproduction, modification, distribution, and licensing.
Infringement includes unauthorized copying, distribution, or use of software.
Protection lasts 60 years from publication or author’s death (as per type).

Critical for software developers, tech companies, and IP-based businesses.

Software Piracy

Refers to unauthorized copying, use, or distribution of licensed software.
A violation of both Copyright Law and provisions under the Information Technology Act, 2000.
Forms include:
- End-user piracy (copying for multiple devices),
- Counterfeit software,
- Internet piracy (illegal downloads),
- Hard-disk loading (vendors installing illegal software on new PCs).
Penalties: Fine and imprisonment under Sections 63, 65, 66 of the Copyright and IT Acts.

Impacts: Major revenue losses to software industry; a punishable economic offence.

Database Protection

Databases are protected under the Copyright Act, 1957 if they involve intellectual creativity in arrangement or selection.
India does not yet have a separate sui generis law for database protection like the EU.
Unauthorized extraction or use of data may lead to copyright infringement, breach of confidentiality, or contractual violation.
Technological protection (encryption) and licensing terms are common safeguards.
Case law in India and globally considers databases protected if they are original compilations.

Crucial in the age of AI, big data, and digital business models.

Cyber Terrorism

Defined under Section 66F of the IT Act, 2000.
Involves the use of computers or networks to threaten the sovereignty, security, or integrity of India.
Includes:
- Attacking critical infrastructure (power, banking),
- Spreading mass panic or damage,
- Stealing defense or strategic data,
- Propagating terrorism online (radicalization, cyber threats).
Punishment: Life imprisonment for severe cyber terrorism offences under Section 66F.

National security threat – tackled by agencies like CERT-In, NIA, and ED.

Taxation
MCQs –

Under the Income Tax Act, 1961, Business is defined to include any trade, commerce, manufacture, or any concern in the nature of trade or commerce.
Profession involves the idea of an occupation requiring intellectual skill or manual skill, such as painting or sculpture, controlled by the operator’s skill.
The gains arising on transfer of capital assets are taxable as Capital Gains.
Exemption from capital gains on the transfer of a residential house is provided under Section 54.
Normally, an asset held for more than 36 months is considered a Long-Term Capital Asset.
Agricultural land in a rural area in India does not come under the category of Capital Asset.
The value for which the capital asset was acquired by the seller is known as the Cost of Acquisition.
Examination remuneration paid to a lecturer is charged under the head Income from Other Sources.
Family Pension is considered Other Source Income.
The Goods and Services Tax (GST) Act came into effect on 1st July 2017.
GST is levied on the Supply of Goods and Services.
When the tax is not directly paid by the person on whom it is imposed but through an intermediary, it is called an Indirect Tax.
GST is based on the principle of Destination-Based Consumption Taxation.
States (including Union Territories with legislatures) levy SGST, and Union Territories without legislatures levy UTGST.
Imports of goods under GST are treated as Inter-State Supplies.
Imports of goods are subject to IGST (Integrated GST), in addition to applicable Customs Duty.
The Harmonised System of Nomenclature (HSN) Code is used for classifying goods under the GST regime.
The Goods & Services Tax Network (GSTN) is jointly set up by the Central and State Governments to provide IT infrastructure to taxpayers and stakeholders.
The GST Council is a joint forum of the Centre and States that makes recommendations on tax rates, exemptions, threshold limits, etc.
265 Article of the Constitution of India says that “No tax shall be levied or collected except by authority of law “
Given that the sale consideration of a long-term capital asset is ₹10,00,000,
and the selling expenses are ₹20,000.
The cost of acquisition was ₹1,00,000 in the financial year 2001–2002.
The cost of improvement is also ₹1,00,000, made in the same year.You are required to compute the Long-Term Capital Gain for the Assessment Year 2024–2025,

Short Notes

1. Double Tax Relief

Double taxation occurs when the same income is taxed twice, in two countries — once in the source country and again in the residence country.
Relief is provided under:
- Bilateral Relief: Through Double Taxation Avoidance Agreements (DTAA) between countries.
- Unilateral Relief: When no treaty exists, relief is given by a country’s domestic law (e.g., Section 91 of Income Tax Act, 1961 in India).

Methods of Relief:

Exemption Method: One country exempts income already taxed in another.
Tax Credit Method: Tax paid in one country is allowed as a credit against tax payable in the other.

Ensures fairness in global taxation and encourages cross-border trade/investment.

2. Kinds of GST

GST (Goods and Services Tax) in India is a destination-based indirect tax implemented in a dual model:

Types of GST:

CGST (Central GST) – Collected by the Central Government on intra-state supply.
SGST (State GST) – Collected by the State Government on intra-state supply.
IGST (Integrated GST) – Levied on inter-state supply of goods/services; collected by the Centre and shared.
UTGST (Union Territory GST) – Levied in Union Territories without a legislature (e.g., Chandigarh).

Ensures a unified tax system, eliminating cascading effect of multiple taxes.

3. Input Tax Credit (ITC)

ITC means claiming credit for GST paid on inputs (goods/services) used for further supply or business.
Available under Section 16 of the CGST Act, 2017.

Conditions to claim ITC:

Possession of tax invoice,
Receipt of goods/services,
Tax paid by supplier to govt,
Filing of valid GST returns.

ITC helps in avoiding tax-on-tax, thus reducing the effective tax burden and encouraging compliance.

4. Mixed Supply

Defined under Section 2(74) of CGST Act.
A combination of two or more individual supplies, made together for a single price, which do not form a natural bundle.

Example:

A gift hamper containing chocolates, toys, and perfume sold together.

Tax Rate: Highest rate applicable on any item in the bundle is applied to the entire supply.

It is not naturally bundled, and thus taxed higher to avoid tax evasion through bundling.

5. Composite Supply

Defined under Section 2(30) of CGST Act.
A supply consisting of two or more goods/services naturally bundled and supplied together, with one being the principal supply.

Example:

Purchase of a mobile phone with charger, or a travel package including flight and hotel.

Tax Rate: Tax rate of principal supply is applied to the entire bundle.

Recognizes the economic reality of how products/services are consumed together.

Human Rights –

MCQ

National Human Rights Commission is a:
d. Both a and c
The SHRC have been established in how many states in India:
d. 25
CEDAW came into force in the year:
c. 1981
Convention on the Prevention and Punishment of the Crime of Genocide was adopted on:
a. 9th December, 1948
Forced Labour Convention was adopted by:
a. ILO
Legal concept describing the lack of nationality:
c. Statelessness
A child under the Convention on the Rights of the Child is a person below the age of:
c. 18
Section of the Human Rights Act, 1993 for Human Rights Courts:
b. 30
Members of the African Commission on Human and Peoples’ Rights are selected for:
d. 6 years
Amendment that added Fundamental Duties to the Constitution:
a. 21A

FILL IN THE BLANKS

CRC means:
Child Rights Convention
PIL stands for:
Public Interest Litigation
American Convention on Human Rights is a:
Regional human rights convention
ECHR means:
European Convention on Human Rights
The Human Rights Act in India was passed in the year:
1993
The term derived from the Greek word ‘genos’ and the Latin word ‘cide’ is:
Genocide
OAU means:
Organisation of African Unity
The first country to allow voting rights for all groups of people was:
New Zealand
CEDAW means:
Convention on the Elimination of All Forms of Discrimination Against Women
Freedom and equality are the ______ rights of every human being:
Inalienable

The African Charter on Human and Peoples’ Rights (Banjul Charter)

Adopted: 1981; Came into force: 1986
Adopted by: Organization of African Unity (now African Union)
It is a regional human rights treaty that recognizes both individual and collective (peoples’) rights.
Covers civil, political, economic, social, and cultural rights in a holistic and interdependent manner.
Emphasizes duties of individuals (unlike most human rights instruments).
Enforced by the African Commission on Human and Peoples’ Rights and later, the African Court on Human and Peoples’ Rights.

Unique for including group rights, right to development, and individual duties.

Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment (CAT)

Adopted: 1984 by the UN General Assembly; Came into force: 1987
Focuses on the absolute prohibition of torture under any circumstances, including war or public emergency.
Defines torture under Article 1 as severe physical or mental pain inflicted intentionally for coercion or punishment.
Signatory states must criminalize torture, prosecute offenders, and provide remedies to victims.
Supervised by the UN Committee Against Torture.

Torture is a non-derogable right — meaning no exceptions are allowed under international law.

Convention Relating to the Status of Refugees (1951 Refugee Convention)

Adopted: 1951, extended by 1967 Protocol
Sets out the definition of a refugee, rights of refugees, and obligations of host countries.
Defines a refugee as someone who fears persecution due to race, religion, nationality, political opinion, or membership of a particular social group.
Key principle: Non-refoulement – refugees must not be returned to a country where they face serious threats.
Administered by the United Nations High Commissioner for Refugees (UNHCR).

Cornerstone of international refugee protection law.

Convention on the Prevention and Punishment of the Crime of Genocide (Genocide Convention)

Adopted: 9th December 1948; Came into force: 1951
First human rights treaty adopted by the United Nations post World War II.
Defines genocide as acts committed with the intent to destroy, in whole or in part, a national, ethnic, racial, or religious group.
Obliges states to prevent and punish genocide whether committed in war or peace.
Recognized under customary international law, even for non-signatory states.

Provides the legal framework to prosecute genocide before international courts like the International Criminal Court (ICC).

World Conference on Human Rights (Vienna Conference, 1993)

Held in Vienna, Austria, organized by the United Nations.
Attended by 171 states; resulted in the Vienna Declaration and Programme of Action.
Reaffirmed the universality, indivisibility, and interdependence of all human rights (civil, political, economic, social, and cultural).
Led to the creation of the Office of the United Nations High Commissioner for Human Rights (OHCHR).
Addressed issues such as:
- Rights of women and children
- Protection of minorities and indigenous peoples
- Right to development

Marked a major turning point in global consensus on human rights post-Cold War.

Law relating to Women

MCQs

Bigamy does not apply to Muslim female.
Section 498-A was added in the year 1983 by the Criminal Law (Second Amendment) Act.
In State of Maharashtra vs Madhukar Narayan Mardikar, the Supreme Court held that rape of unchaste women and prostitutes cannot be justified.
The PCPNDT Act (Pre-Conception and Pre-Natal Diagnostic Techniques & Prohibition of Sex Selection) was passed in 1994.
Shanti vs State of Haryana (1991) discusses the ingredients of Section 304B of IPC.
In D.K. Basu vs State of West Bengal (1997), the Apex Court laid down guidelines to prevent custodial violence and protect rights during arrest and detention.
The common ingredient in Section 304B and 498-A is Cruelty.
Bigamy is an offence related to Marriage under IPC.
In Rupali Devi vs State of Uttar Pradesh (2019), the SC ruled that a dowry harassment complaint can be filed in all places.
The Medical Termination of Pregnancy (MTP) Act was passed in 1971.

Fill in the Blanks

The Maternity Benefit Act, 1961 is now included in the New Labour Code, 2020.
Outraging the modesty of a woman through words, gestures, or acts is covered under Section 509 of IPC.
The corresponding section to Section 498-A of IPC in the Indian Evidence Act is Section 113-A.
Under the Maternity Benefit (Amendment) Act, 2017, maternity leave is 26 weeks.
In Municipal Corporation of Delhi vs Female Workers (Muster Roll), 2000, the Supreme Court extended maternity benefits to casual labourers.
Indian Christian women’s succession is governed by the Indian Succession Act, 1925.
The Hindu Succession (Amendment) Act, 2005 granted equal rights to Hindu women in ancestral property.
An adoptive mother is entitled to 12 weeks of maternity leave.
The Maternity Benefit Act, 1961 also covers miscarriage and medical termination of pregnancy.
Palimony was awarded in D. Velusamy vs D. Patchaiammal, 2010.

Short Notes

1. Offences Related to Marriage under the Indian Penal Code (IPC)

The IPC (Sections 493–498) covers offences involving deceit, fraud, and cruelty in the context of marriage.

Key Sections:

Sec 493: Cohabitation caused by a man deceitfully inducing belief of lawful marriage.
Sec 494: Bigamy – marrying again during the lifetime of a spouse (unless exempted).
Sec 495: Same as Sec 494, but without disclosing previous marriage.
Sec 496: Fraudulent marriage ceremony without lawful marriage.
Sec 497: [Struck down by Supreme Court in Joseph Shine v. Union of India (2018)] – criminalized adultery, now decriminalized.
Sec 498: Enticing or taking away a married woman.
Sec 498A: Cruelty by husband or relatives of husband – includes physical/emotional abuse and dowry harassment.

These provisions aim to protect the sanctity of marriage and shield women from exploitation.

2. Salient Features of the Medical Termination of Pregnancy (MTP) Act, 1971

The MTP Act regulates abortion laws in India, ensuring safe and legal access to termination of pregnancy.

Key Features:

Termination up to 20 weeks: Requires opinion of 1 registered medical practitioner (RMP).
20 to 24 weeks: Permitted under special circumstances (rape, incest, minors, etc.) with approval of 2 RMPs.
Beyond 24 weeks: Permitted only for fetal abnormalities with approval of a Medical Board.
Confidentiality clause: Identity of the woman must not be disclosed.
Expanded access to unmarried women and those facing contraceptive failure.

Updated via MTP (Amendment) Act, 2021, enhancing reproductive rights of women.

3. Changes to the Maternity Benefit Act, 1961 under the New Labour Code, 2020

Under the Code on Social Security, 2020, the provisions of the Maternity Benefit Act are retained with minor changes.

Key Highlights:

Paid maternity leave of 26 weeks (for first two children); 12 weeks for subsequent children.
Adoptive mothers and commissioning mothers (surrogacy) also eligible for 12 weeks.
Creche facility: Mandatory for establishments with 50 or more employees.
Employers cannot dismiss women for availing maternity leave.
The Code introduces unified registration and digitized compliance.

Ensures continuity of maternity protections while integrating them into a consolidated labour framework.

4. Inheritance Rights of Hindu Women under the Hindu Succession (Amendment) Act, 2005

The 2005 Amendment to the Hindu Succession Act, 1956 brought gender equality in coparcenary rights.

Key Changes:

Daughters become coparceners (equal to sons) in ancestral property.
Daughters have equal rights, liabilities, and duties in joint Hindu family property.
Applies irrespective of marital status.
The daughter can demand partition, manage the property, and claim survivorship rights.

Landmark judgment: Vineeta Sharma v. Rakesh Sharma (2020) upheld that daughters have equal coparcenary rights by birth, even if the father was deceased before 2005.

5. Succession Rights of Indian Christian Women

Governed primarily by the Indian Succession Act, 1925, for intestate succession.

Key Points:

If a Christian man dies intestate, property is divided among:
- 1/3 to wife, and
- 2/3 among children equally (both sons and daughters).
If no children, wife gets 1/2 share, and the rest goes to legal heirs (parents/siblings).
Daughters enjoy equal inheritance rights as sons.
No distinction based on marital status or residential status.

Provides equitable succession rights to Christian women under a secular legal framework