Recently, stock market regulator SEBI has imposed trade restrictions on 331 firms which are suspected of being “shell companies”. Which of the following is NOT an activity generally carried out using shell companies?

Trade and normal business

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Financial manoeuvre for some unstated objectives

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Illegal financial activities

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Violation of intellectual rights and properties

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None of the above

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Solution

The correct option is A Trade and normal business
Shell companies are created for unstated / hidden objectives of financial manoeuvres and not for normal trade.

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Similar questions

Which of the following refers to trade barrier in the context of WTO?

I. Restrictions on domestic trade

II. Not allowing companies to do foreign trade beyond specific quantity

III. Restrictions on the export and import of goods

IV. Restrictions on the price fixed by companies

Q9. Consider the following statements about Shell Companies:

1. They can be set up by business people for legitimate purposes only.

2. Shell companies are companies without active business operations or significant assets.

Select the incorrect answer using the codes given:

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