A) How is statutory corporation formed? Give 3 examples. B) What is the suitability for the same?
Answers
Answer:
A)
Explanation:
Statutory Corporation is an autonomous form of Public sector. It is formed by passing a Special Act either at the Legislature Assembly or at the Parliament. The "Statue" clearly defines the rules and regulations, plans & policies, rights & powers, limits & scope for working of the corporation. It is formed with the intention of service motive only.
Eg:-
1)Reserve Bank of India,
2)State Bank of India,
3)Life Insurance Corporation,
4)Unit Trust of India,
5) Employees State Insurance Corporation,
6)Oil and Natural Gas Corporation etc. are some examples of statutory corporations.
Answer:
B)
Explanation:
Not
✓An investment must meet the suitability requirements outlined in FINRA Rule 2111 prior to being recommended by a firm to an investor.
✓Suitability depends on the investor's situation based on the FINRA guidelines.
✓Suitability standards are not the same as fiduciary requirements.
Understanding Suitable