n NISM Certifications
VII NISM Series VII
Medium

“Entering into a transaction in securities without intention to perform it or without intention to change the ownership of such securities” is an example of ________.

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Prevention of Money Laundering Act

  2. B

    Prohibition of Insider Trading Regulations, 2015

  3. Fraudulent and Unfair Trade Practices

    Correct answer

  4. D

    SEBI Act

Why this is the answer

Under Regulation 4(2) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, entering into transactions without intent to perform them or change ownership of securities constitutes a manipulative, fraudulent, or unfair trade practice.

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