Question

Match the following corporate actions with their correct legal classification (Diversion vs. Siphoning): 1. Action I: A textile manufacturing company uses its Bank Working Capital Overdraft to purchase shares of an unrelated real estate firm. 2. Action II: A director transfers ₹10 Crore of loan funds to an offshore entity under the guise of fake software consultancy fees to acquire personal villas abroad.

A Action I = Siphoning; Action II = Diversion
B Action I = Diversion; Action II = Siphoning
C Action I = Siphoning; Action II = Siphoning
D Action I = Diversion; Action II = Diversion
E Neither action represents financial wrongdoing
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RBI Grade B 2026 Phase 1 Memory Based Paper
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