New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    As per Regulation 4 of SEBI (Prohibition of Fraudulent

    and Unfair Trade Practices Relating to Securities Market) Regulations, 2003, which of the following activities involving securities would NOT be deemed manipulative, fraudulent, or unfair, according to the given text? 
    A Selling, dealing, or pledging of stolen, counterfeit, or fraudulently issued securities previously traded on the market Correct Answer Incorrect Answer
    B Manipulating the benchmark price of securities Correct Answer Incorrect Answer
    C Engaging in securities transactions on behalf of a client without their knowledge or instructions Correct Answer Incorrect Answer
    D Disseminating false or misleading information with the intent to influence investors' decisions Correct Answer Incorrect Answer
    E Dealing in securities with the intention of performing the transaction Correct Answer Incorrect Answer

    Solution

    A7. e) Dealing in securities with the intention of performing the transaction As per Reg 4- (e)any act or omission amounting to manipulation of the price of a security12[including, influencing or manipulating the reference price or bench mark price of any securities];(f) 13[knowingly] publishing or causing to publish or reporting or causing to report by a person dealing in securities any information 14[relating to securities, including financial results, financial statements, mergers and acquisitions, regulatory approvals,] which is not true or which he does not believe to be true prior to or in the course of dealing in securities;(g)entering intransaction insecurities without intention of performing it or without intention of change of ownership of such security;15[(h) selling, dealing or pledging of stolen, counterfeit or fraudulently issued securities whether in physical or dematerialized form: Provided that if:-(i)the person selling, dealing in or pledging stolen, counterfeit or fraudulently 6 issued securities was a holder in due course; or (ii)the stolen, counterfeit or fraudulently issued securities were previously traded on the market through a bonafide transaction, (iii)such selling, dealing or pledging of stolen, counterfeit or fraudulently issued securities shall not be considered as a manipulative, fraudulent, or unfair trade practice;]16[(i) ***]17[(j) ***]18[(k) disseminating information or advice through any media, whether physical or digital, which the disseminator knows to be false or misleading in a reckless or careless manner and which is designed to, or likely to influence the decision of investors dealing in securities;]19[(l)***];(m) 20[a market participant entering into transactions on behalf of client without the knowledge of or instructions from client or misutilizing or diverting the funds or securities of the client held in fiduciary capacity".

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