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CS Executive · Capital Market and Securities Laws · Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market

Section 12A of the SEBI Act, 1992 applies its fraud-related clauses (a) to (c) in connection with securities of which kind?

The fraud-related clauses of Section 12A cover securities that are listed or proposed to be listed on a recognised stock exchange. The section sets no condition about trading history, type of issuer or dematerialised form, so those alternatives are incorrect.

  1. ASecurities listed or proposed to be listed on a recognised stock exchangeCorrect
  2. BOnly securities already traded for at least one year
  3. COnly equity shares of public sector companies
  4. DOnly securities held in dematerialised form

Explanation

Clauses (a), (b) and (c) refer to securities that are listed or proposed to be listed on a recognised stock exchange. No holding period, issuer type or demat requirement is stated in the text.

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