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Question

The fraudulent and unfair practices at a stock exchanges are commonly called as __________.

A
excessive speculation
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B
manipulating share price
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C
fraud
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D
insider trading
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Solution

The correct option is D insider trading
  • Insider trading is defined as a malpractice wherein trade of a company's securities is undertaken by people who by virtue of their work have access to the otherwise non public information which can be crucial for making investment decisions.
  • The overall objective of SEBI is to protect the interests of investors and to promote the development of, and regulate the securities market.
  • Controlling insider trading and takeover bids and imposing penalties for such practices is one of the major objectives of SEBI.

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