CS Executive June 2026 SBIL Most Important Questions: High-Weightage Topics, Case Studies & Exam Strategy

The CS Executive June 2026 SBIL paper requires a strong understanding of business laws, startup regulations, industrial laws, labor codes, and practical case-study application. Since many questions are scenario-based, students must focus on both conceptual clarity and legal provisions.

Here are some of the most important topics, expected case studies, and exam-oriented questions based on previous trends. It also includes answer-writing tips and key provisions that can help candidates score higher in the June 2026 examination.

CS Executive June 2026 SBIL Most Important Questions from Guess Paper

The following CS Executive June 2026 SBIL Most Important Questions from the Guess Paper cover high-probability topics, key legal provisions, important case studies, and frequently tested concepts to help candidates focus their final revision effectively.

Question 1.1: Explain the eligibility criteria for DPIIT recognition as a Startup and Section 80-IAC tax benefits. 

To be recognized as a DPIIT Startup:

• The entity must be a private company, Limited Liability Partnership (LLP), or a partnership firm.

• Turnover should not exceed 100 crore rupees for any financial year since incorporation.

• Incorporation period should not exceed 10 years.

• The entity must demonstrate work towards innovation, development, or improvement of products/processes/services, or a scalable business model with high potential for employment or wealth creation.

• An entity formed by splitting up or reconstruction shall not be considered a startup.

For Section 80 IAC Tax Benefits:

• The startup must be recognized by DPIIT.

• Only private companies and LLPs are eligible.

• Benefits are available for 3 consecutive years out of the first 10 years of incorporation.
  Underlining key terms such as private company, LLP, partnership firm, 100 crore, 10 years, splitting up or reconstruction (not a startup), Inter-Ministerial Board, tax holiday, and 3 years is essential for paper presentation.

Question 1.2: Describe the funding procedure followed by a Venture Capitalist (VC). 

Venture Capitalists (VCs) invest in startups in exchange for equity. The typical funding process includes:

• Entering into a Memorandum of Understanding (MOU).

• Conducting comprehensive due diligence.

• Entering into a Shareholders Agreement.

• Issuing shares through private placement.

• Making necessary alterations to the company's Articles of Association, if required.

Question 1.3: Using the revised MSME classification criteria, determine the exact category (Micro, Small, Medium) of GreenPath Organics Pvt. Ltd. based on its FY 2023-24 turnover of Rs. 18 crores and plant & machinery investment of Rs. 12 crores. Also, describe the benefits of Udyam registration. 

For 'Green Path Organics Private Limited' with a turnover of ₹18 crore and investment in plant and machinery of ₹12 crore:

• MSME Classification Criteria (Investment & Turnover):

• • Micro: Investment < ₹1 crore AND Turnover < ₹5 crore

  • Small: Investment < ₹10 crore AND Turnover < ₹50 crore

  • Medium: Investment < ₹50 crore AND Turnover < ₹250 crore

• Benefits of MSME Udyam Registration:

• • Free of cost and paperless registration process.

  • Eligibility for Priority Sector Lending.

  • A single registration allows for engaging in multiple activities.

Question 1.4: Explain the difference between Equity-based Joint Venture and Contractual (Contractual) Joint Venture. 

The difference between an equity-based joint venture and a contractual joint venture explains how business entities structure ownership, control, and operational responsibilities in a joint collaboration.

Question 1.5: Explain the benefits of DPIIT Startup to the entrepreneurs. 

DPIIT-recognised startups benefit from:

• Patent Cost Rebate: Up to an 80% rebate on patent filing fees, promoting intellectual property protection.

• Easy Exit: Simplified process for winding up the company.

• Simplified Process: Easier and quicker registration and compliance procedures.

• Tax Benefits: Eligibility for tax benefits under Section 80 IAC.

• Research & Development Parks: Access to established R&D parks and incubation facilities.

• Self-Certification: Ability to self-certify compliance with certain labor and environmental laws.

General Answer Writing and Presentation

• For 3-mark questions, three relevant points are generally sufficient. Focus on 100% accurate and relevant content.

• Answers should be in bullet points rather than long paragraphs.

• Highlighting and underlining key words (e.g., public company, thrift and saving, accepting deposits, lending to members, mutual benefit, restricted activities, vehicle leasing, current accounts) is essential.

Case Study Based Questions

Case Study Based Questions present practical business and legal scenarios that test the application of concepts related to company law, FEMA guidelines, and financial regulations. 

 Case 1: A group of progressive farmers in Nashik wants to incorporate “Krishi Dhan Nidhi Limited” to promote savings habits and provide short-term credit facilities exclusively within their community. The promoters intend to offer vehicle leasing services to its members and open current accounts to facilitate daily farming transactions.

Examine whether the promoters are aligned with the core objectives of a Nidhi Company and whether their proposed activities comply with the strict business restrictions imposed under the law.

1. Objective of a Nidhi Company: A Nidhi company is a public company solely for cultivating thrift and saving among its members, and accepting deposits from and lending to its members only, for their mutual benefit.

2. Restrictions on Nidhi Companies: Nidhi companies cannot carry on chit fund, insurance, hire purchase, leasing, or acquisition of securities. They cannot pledge securities, issue preference shares, or carry on any business other than borrowing and lending from and to members. They also cannot open current accounts.

3. Conclusion and Advice: Krishi Dhan Nidhi Limited cannot engage in vehicle leasing services and cannot open current accounts. These activities are restricted.

 Case 2: Nexus Analytics Inc., a company incorporated in London, UK, has been operating successfully with a track record for the last four financial years. The company’s audited balance sheet shows a net worth of USD 65,000.

The management now wants to set up a Liaison Office (LO) in Mumbai to coordinate business with Indian vendors and promote their brand.

Examine whether Nexus Analytics Inc. satisfies the eligibility criteria to open a Liaison Office in India under the Foreign Exchange Management Act (FEMA) guidelines.

• Eligibility Criteria for a Liaison Office:

1. Same Name: LO must bear the same name as the parent company.

2. Net Worth: Minimum net worth of USD 50,000 (or equivalent) in the last audited balance sheet.

3. Profitability Record: Profit-making record for the preceding three financial years.

4. Permitted Activities: LO can only act as a communication channel. It cannot undertake any commercial, trading, or industrial activity, or enter business contracts.

• Conclusion: Nexis Analytics Inc. has a net worth of USD 65,000 (exceeding USD 50,000) and a profit-making record for four years (exceeding three years). Thus, it satisfies all eligibility criteria to open an LO.

 Case 3: Veda Agro Products Private Limited is a closely held private company with only two shareholders, Soham and Rohan, who each hold 50% shares. Due to personal reasons, Soham decides to exit the business and agrees to transfer all his shares to Rohan.

Rohan wants to continue running the agro-business by converting the company into a One Person Company (OPC).

Outline the legal procedure that Rohan must follow to convert Veda Agro Products Private Limited into an OPC.

The process for converting a private company to an OPC involves:

1. Hold a Board Meeting: Send notice at least 7 days prior. Pass a Board Resolution for conversion.

2. Hold General Meeting: Send notice at least 21 clear days prior. Pass a Special Resolution, including the appointment of a nominee.

3. File Form MGT-14: File Form MGT-14 with the ROC within 30 days. Include an NOC from creditors, altered MOA & AOA, and Special Resolution copy.

4. File Form INC-6: File Form INC-6 for conversion.

5. Issuance of New Certificate: ROC will issue a fresh Certificate of Incorporation for the OPC.
   Key terms like Board Meeting, 7 days, Special Resolution, 21 clear days, Nominee, Form MGT-14, 30 days, NOC, altered MOA & AOA, Form INC-6, fresh Certificate of Incorporation should be underlined.

 Case 4 : XEED's MOA restricts business to electric appliances. Its AOA was amended via Special Resolution to allow real estate business. The Board bought land for a mall, but a shareholder challenged this as ultra vires.

1. Validity of AOA Amendment: An AOA amendment enabling activity outside the scope of its MOA is not valid. Such an act is ultra vires the company and void ab initio.

2. Validity of Shareholder's Challenge: The shareholder's challenge is valid. An act ultra vires the MOA cannot be ratified, even by a special resolution.

3. Rectification of Board's Action: The Board's action, being ultra vires the MOA, cannot be subsequently ratified by shareholders. This principle is based on the landmark case: Ashbury Railway Carriage and Iron Company Limited v. Riche.

 Case 5 : ABC Housing Finance Ltd. meets all registration conditions except its Net Owned Fund (NOF), which is ₹10 crore.

1. Eligibility for HFC Registration (Net Owned Fund): An HFC must have a minimum Net Owned Fund (NOF) of ₹20 crore. Since ABC Housing Finance Ltd. has an NOF of ₹10 crore, it is not eligible for registration.

2. Procedure for HFC Registration:

• Entity must be a public company incorporated as a Non-Banking Financial Company (NBFC).

• Its primary objective must be to carry on a housing finance business.

• It must be registered with the National Housing Bank (NHB).

• Application on the NHB website (nhb.org.in) with a demand draft.

 Final Preparation Tips for CS Executive June 2026 SBIL

A focused revision strategy, regular practice of case-study questions, and strong answer presentation can help candidates maximize their score in the CS Executive June 2026 SBIL examination.

• Focus on case-study based provisions.

• Learn important sections, limits, and thresholds.

• Practice comparative tables regularly.

• Revise labor law provisions multiple times.

• Use bullet-point answers for better presentation.

• Underline important legal terms and case names.

• Memorize landmark cases and statutory limits.

CS Executive June 2026 SBIL Exam Strategy

Before attempting the paper, candidates should have a clear plan for utilizing their reading time effectively.

How to Use the First 15 Minutes

• Select optional questions immediately.

• Identify sections, legal provisions, and landmark cases that may be required.

• Avoid reading lengthy case studies completely during the initial scan.

• Focus directly on the questions asked within case studies.

• Decide the order of attempting questions before writing begins.

A well-planned start can improve time management and presentation throughout the examination.