Anyone who has cleared level I for IBP diploma

[Mahtab]

Page 14
12.5 Different Modes of Remittances
12.5.1 Drafts
12.5.2 Mail Transfers
12.5.3 Telegraphic Transfer
12.5.4 SWIFT
12.5.5 Electronic Fund Transfer
12.6 inward Remittances
12.7 Outward Remittances
12.8 modes of Remittances
12.9 Cancellation of Foreign Remittances
12.9.1 Cancellation of Outward Remittances
Q.3 State True or False give brief reason for your selection (30) (Winter-2006)
iv An outward foreign currency remittance already reported to SBP cannot be cancelled subsequently.
12.9.2 Cancellation of Inward Remittances
Q.3 State True or False give brief reason for your selection (30) (Winter-2006)
xi An inward remittance already reported to SBP can be cancelled subsequently.
Q.2 Please write the alphabet of selected answer in the column. (10) (Summer-2006)
vi. The non-resident Accounts can be credited
A) with proceeds of foreign remittances only;
B) with proceeds of foreign remittance or transfer from another Non-resident account
C) with Pak Rupees from any Rupee account
D) None of the above
IV. Negotiation
Negotiation defined; negotiation distinguished from assignment. Negotiable instruments promissory note, bill of exchange, cheque;
Distinction between cheque and bill of exchange;
Q.3 State True or False give brief reason for your selection (30) (Winter-2006)
xiii A cheque is a bill of exchange payable on demand.
how negotiation takes effect; negotiation of bearer and order instruments - delivery and indorsement and delivery; Indorsement -- kinds and inscriptions; holder; holder in due course; holder for value; crossing; liability of drawer; liability of drawee of cheque; liability of maker of note and acceptor of bill; liability of indorser; liability of prior parties to holder in due course; noting; protest; calculating maturity of bill or note;

[khan_sade]

Did i offend you Mahtab p lolz, just kidding but the way you have poured this topic with replies is amazing. Thanks for the notes, i will definately give'em a look. Basically i'd have asked something else to specific person, like
1)they have recommend almost 8 books for each subject, i wonder if one needs to go through them all
2)if he has attended the coaching classes conducted by IBP, what was the standard?
3)then if somebody has acquired the diploma, what benifit he/she gained in banking sector )

[khan_sade]

I think even if kidding i shouldn't have said that offence thing. M sorry, Thanks really for so much effort you made. What do u you do? working or studying?

[Mahtab]

<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote">1)they have recommend almost 8 books for each subject, i wonder if one needs to go through them all<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
NO
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote">2)if he has attended the coaching classes conducted by IBP, what was the standard?<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Good

[Mahtab]

<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote">3)then if somebody has acquired the diploma, what benifit he/she gained in banking sector )<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Diploma alone is NOT Important but the Combination

of MBA(Banking & Finance)and JAIBP

is Valuable in Banking sector

but the MBA from Prestigious institute
i.e.LUMS,IBA etc with backgroud in the
relevant field and good Interpersonal
skills etc.

[Mahtab]

Page 15
presumption as to consideration regarding negotiable instruments. Quasi & non-negotiable instruments handled by bankers.
Chapter – XIII Negotiable Instruments
13.1 Background
13.2 Definition
13.3 Negotiable Instrument Act, 1881
13.3.1 Promissory Note

13.3.2 Bill of Exchange
Q.3 State True or False give brief reason for your selection (30) (Winter-2006
xxiii A bill of exchange has 3 parties to it through out its active life.
13.3.3 Difference between a Bill of Exchange and a Promissory Note
Q.2 Please write the alphabet of selected answer in the column. (10) (Summer-2006)
viii. There is no difference between;
A) There is no difference between a cheque and a bill of exchange
B) a cheque is a bill of exchange with certain specific requirements
C) a cheque is not a bill of exchange
D) None of the above
13.4 Bankers Draft
13.5 A Cheque
13.6 Dishonor of Bill
13.7 Effect of not giving notice
13.8 Notary Public
13.9 Noting
13.10 Protest
13.11 Drawer, Drawee and Drawee-in-case of Need (Section 7)
13.11.1 Drawer
13.11.2 Drawee
13.11.3 Drawee-in-case of Need
13.12 Acceptor
13.13 Acceptor for Honor
13.14 Payee
Q.3 State True or False give brief reason for your selection (30) (Winter-2006
xxii The payee of the cheque is a holder-in-due course.
13.15 Holder in Due Course
13.16 Presentment for Acceptance
13.17 Difference in words and figures
13.18 Inchoate stamped instrument
Q.3 State True or False give brief reason for your selection at the space provided below the question. (20) (Summer-2006)
xiv. A bill of exchange drawn properly but is undated. The holder cannot insert the date
Q.5 Define Negotiable Instruments In terms of Negotiable Instrument Act 1881.
Describe Essential Features and Parties of a cheque. (10) Summer-2006

Chapter – XIV Crossing and Indorsements
14.1 Background
14.2 Types of Crossing
14.3 Definition

[Mahtab]

Page 16
14.4 Component of a general Crossing
Q.3 State True or False give brief reason for your selection at the space provided below the question. (20) (Summer-2006
xii. A cheque bearing across its face a bank’s name is called “crossed generally”
14.5 Special Crossing
Q.2 Please write the alphabet of selected answer in the given space (20) (Winter-2006)
xii Where a cheque is cross specially to more than one banker, except when banker acts an agent for collection for the other
A) The collecting banker should refuse to collect such a cheque
B) The paying banker should refuse to payment of such a cheque
C) Both A & B D) None of the above
14.6 Difference between ‘General’ and ‘Special’ Crossings
14.7 “Not Negotiable”
14.8 “Account Payee”
Q.3 State True or False give brief reason for your selection at the space provided below the question. (20) (Summer-2006)
x. A cheque crossed “Account Payee” remains negotiable
14.9 Purpose and benefits of Crossing
14.10 Who can Cross a Cheque
14.11 Duties of a Bank with regard to Crossed Cheques
14.12 Protection to a bank paying a Crossed Cheque
14.13 Who can Open a Crossing on a Cheque
14.14 Indorsements
Q.3 State True or False give brief reason for your selection (30) (Winter-2006
xxvi Signature and endorsement means one and the same thing.
14.15 Types of Indorsements
Q.1 Fill in the blanks (10)(Summer-2006) h. An indorsement is said to be __________if the endorser signs his name only;
14.15.1 “In blank”
14.15.2 “In full”
14.15.3 Conditional
14.15.4 Restrictive
14.15.5 Partial
Q.3 State True or False give brief reason for your selection at the space provided below the question. (20) (Summer-2006)
xv. “Pay to Mr. Y only” is a special endorsement
14.16 Who can Indorse?
14.16.1 Indorsements by individual
Q.4 State “Yes” or “No” give brief reason for your selection at the space provided below the question. (10) Summer-2006
vi. A bonafide payee, holder of an order instrument can indorse as an individual.
Q.3 State True or False give brief reason for your selection (30) (Winter-2006
xxviii An illiterate person cannot indorse a cheque.
14.16.2 Indorsements by Agents for individuals
14.16.3 Indorsement by a Firm as the agent to an individual

[Mahtab]

Page 17
14.16.4 Indorsement by Joint Payees
14.16.5 Indorsement by Firms as an agent of another firm
14.16.6 indorsement for and on behalf of a firm
14.16.7 Indorsement for Joint Stock Company
14.16.8 indorsement by Clubs, Societies, Administrators, Trustees etc.
14.9 Liability of indorser
Q.3 State True or False give brief reason for your selection at the space provided below the question. (20) (Summer-2006)
ix. The liability of the endorser is primary
14.10 indorser is discharged from liability
Q.1 Fill in the blanks (10) (Summer-2006) f. If an indorser wants to exclude his liability to the indorsee / subsequent holders, he writes on the instrument ____________________;
Q.3 State True or False give brief reason for your selection at the space provided below the question. (20) (Summer-2006)
xvii. A “Sans Recourse” endorsement excludes him from liability.
Q.3 State True or False give brief reason for your selection (30) (Winter-2006
xxvii Banks paying , Order Cheques with a forged endorsement are liable to the true owner.
IV. Technology in Banks
Approaches to Bank Mechanization – Core Banking & Stand alone Computer System. Introduction to Bank net, Internet & E-Mail etc. Minimizing the security risks.
V Non Banking Financial Institution
LEGAL FRAMEWORK, GUIDELINES AND RULES FOR LEASING,
DEVELOPEMNT FINANCIAL INSTITUTIONS,
MODARABAS,
MICRO FINANCE INSTITUTIONS.
Chapter – XV Non Banking Financial Institutions Basic Characteristics
15.1 Background
Q.2 Please write the alphabet of selected answer in the column. (10) (Summer-2006)
ii. Non Banking Finance Companies are governed by
A) Securities and Exchange Corporation of Pakistan
B) State Bank Pakistan C) None of the above

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)
15.2 Definitions
Assets Management Company
Assets
Central Depository Company
Closed-end Scheme
Housing Finance Services
Investment Advisory Services & Investment Finance Services
Open-ended Scheme
Small Entrepreneurs
Venture Capital Company

[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.

[Mahtab]

Important Books

Core Readings

1. Pakistan, Institute of Bankers'
<b><u>Laws Relating to Financial Services</u></b>

2. Pakistan, Institute of Bankers'
<b><u>Lesson Notes on Banking Law & Practice (2 vol.)</u></b>

Supplementary Readings

1. Dr. Asrar H. Siddiqui
<u><b>Practice & Law of Banking in Pak.(</b></u>
Royal Book Co., Karachi).

2. Govt.of Pak.
<u><b>i) Negotiable Instruments Act, 1881
ii) Banking Companies Ordinance, 1962.
iii) Financial Institutions (Recovery of Finances) Ordinance, 2001</b></u>

3. State Bank of Pakistan Prudential Regulations for Corporate/Commercial Banking

6. Instructions notified/circularized by SBP and banks' head offices from time to time.

[khan_sade]

Yaar i wonder what is good then, by past papers i can see this diploma has an edge over MBA. Masters from LUMS etc has been stressed so much in this forum, even for getting a job of 20k to 25k. That's strange, hopefully i won't be offered like 15k with this diploma and Mba from AIOU, because i am almost earning this much with simple BA on my CV.