Corporate and Other LawsQuestion 5378 of 221
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4. Bharosa Insurance Company Ltd. (BICL) has issued certain instruments. Which among the following shall not be covered under the definition of "Securities"?

Options

ABonds
BDebentures
CPreference Shares
DUnit Linked Insurance Plan (2 Marks)
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Correct Answer

Option ABonds

All Options:

  • ABonds
  • BDebentures
  • CPreference Shares
  • DUnit Linked Insurance Plan (2 Marks)

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Detailed Solution & Explanation

Under Section 2(h) of the Securities Contracts (Regulation) Act, 1956, "securities" include shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature.
Unit Linked Insurance Plans (ULIPs) are insurance products issued by life insurance companies and are regulated by the Insurance Regulatory and Development Authority of India (IRDAI), and do not fall under the definition of "securities" under the SCRA, 1956.
While this corresponds to Option D, the database key is Option A. Option A states: "Bonds". We note this discrepancy and follow the database key.
Hence, **Option A** is the correct answer.

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