n NISM Certifications
VII NISM Series VII
Medium

Why did SEBI bring about greater disclosure in bulk deals?

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

Options

  1. A

    To prevent rumours/speculation causing volatility in scrip price

  2. B

    To impart transparency in bulk deals

  3. Both 1 and 2

    Correct answer

  4. D

    None of the above

Why this is the answer

Bulk deals are trades exceeding 0.5% of a company’s equity shares. SEBI mandates disclosure to prevent rumours and speculation and improve transparency.

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