n NISM Certifications
V-A NISM Series V-A
Medium

As per SEBI rules, commissions cannot be paid to ______.

Practice question from NISM Series V A - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Brokers of the stock exchange

  2. B

    Banks

  3. C

    Sponsor distributors

  4. Investors

    Correct answer

Why this is the answer

SEBI rules prohibit the payment of commissions or rebates to investors. Distributors are not allowed to offer commissions or gifts to investors to influence their investment decisions.

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