The relevant authority may, on a case-by-case basis, carry out adjustments for other corporate actions, including compulsory closing out — True or False?

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

Options

True

Correct answer
B

False

Why this is the answer

For certain corporate actions like Bonus, Rights, Mergers, or Splits, adjustments are made on open positions, while for other corporate actions, the authority may, on a case-by-case basis, carry out adjustments including compulsory closing out if deemed necessary.

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