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?
[A] Trade and normal business
[B] Financial manoevour for some unstated objectives
[C] Illegal financial activities
[D] Violation of intellectual rights and properties
Show Answer
Correct Answer: A [ Trade and normal business ]
Notes:
Shell companies are created for unstated / hidden objectives of financial manoeuvres and not for normal trade.
