n NISM Certifications
X NISM Series X
Medium

Under SEBI’s prevention of fraud regulations, can an accused fraudster seek exemption from penalties if they did not gain?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. No, as gain is not required to establish fraud

    Correct answer

  2. B

    No, because future benefits are irrelevant

  3. C

    Yes, if they waive penalties

  4. D

    Yes, if no personal benefit was gained

Why this is the answer

Fraud under SEBI regulations is defined by the act and intent, regardless of actual gain or loss.

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