n NISM Certifications
X NISM Series X
Medium

An investment adviser advises against a client’s attempt to bypass SEBI’s third-party payment rules. This action reflects which ethical principle?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Ethical restraint

    Correct answer

  2. B

    Ethical advice

  3. C

    Ethical business move

  4. D

    Ethical action

Why this is the answer

The adviser’s refusal to assist in illegal activity demonstrates ethical restraint, prioritizing compliance and integrity.

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