New Upcoming Legal Jobs Free Workshop March 11 at 5 PM. Register here

    Question

    Which of the following transactions is not included in

    the definition of a "financial contract" as per the definition given under Factoring Regulation Act, 2011?
    A Purchase of real estate Correct Answer Incorrect Answer
    B Repurchase of securities Correct Answer Incorrect Answer
    C Option transaction involving shares Correct Answer Incorrect Answer
    D Spot transaction involving currencies Correct Answer Incorrect Answer
    E Swap transaction involving interest rates Correct Answer Incorrect Answer

    Solution

    Explanation: Section 2 Definitions: (k) “financial contract” means any spot, forward, future, option or swap transaction involving interest rates, commodities, currencies, shares, bonds, debentures or any other financial instrument, any repurchase of securities and lending transaction or any other similar transaction or combination of such transactions entered into in the financial markets.

    Practice Next