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    Question

    What is the meaning of "mis-selling" as defined in

    Regulation 4 of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003? 
    A Illegal mobilization of funds by any person Correct Answer Incorrect Answer
    B Making false or misleading statements about securities or services Correct Answer Incorrect Answer
    C Concealing or omitting material facts related to securities Correct Answer Incorrect Answer
    D Carrying on collective investment schemes without authorization Correct Answer Incorrect Answer
    E Any act or omission that falls within the purview of regulation 3 Correct Answer Incorrect Answer

    Solution

    As per Reg 4- [(s)27{mis-selling of securities or services relating to securities market Explanation- For the purpose of this clause, "mis-selling" means sale of securities or services relating to securities market by any person, directly or indirectly, by─ (i)knowingly making a false or misleading statement, or (ii)knowingly concealing or omitting material facts, or (iii)knowingly concealing the associated risk, or (iv)not taking reasonable care to ensure suitability of the securities or service to the buyer}.

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