n NISM Certifications
X NISM Series X
Medium

Which act defines and covers negotiable instruments?

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

  2. B

    The Depositories Act, 1996

  3. Securities Contracts (Regulation) Act, 1956

    Correct answer

  4. D

    Securities Contracts (Regulation) Rules, 1957

Why this is the answer

This Act provides the legal framework and definition of securities and negotiable instruments.

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