n NISM Certifications
XV NISM Series XV
Medium

Which of the following intermediaries is supposed to frame a code of internal conduct?

Practice question from NISM XV Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Asset Management Companies (AMCs)

  2. B

    Trustees of Mutual Funds

  3. C

    Self-Regulatory Organizations (SROs)

  4. All of the above

    Correct answer

Why this is the answer

SEBI regulations require all market intermediaries—AMCs, trustees, and SROs—to establish internal codes of conduct. These codes ensure ethical handling of price-sensitive information and compliance with insider trading laws, helping prevent misuse of confidential information across the financial ecosystem.

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