n NISM Certifications
X NISM Series X
Medium

Capital gains do not arise in which of these transactions?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Allotment of units in a Business Trust

  2. Issue of SPV shares in exchange for units of a Business Trust

    Correct answer

  3. C

    Direct allotment of shares in an SPV

  4. D

    None of the above

Why this is the answer

Such an exchange is considered a non-transfer event for capital gains purposes, hence no gains arise.

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