Task: Instance Description Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes the instance 'TEFRA C rule'?

A. securities regulation that is a provision under the Investment Company Act of 1940 that allows certain privately offered funds to operate without registering with the SEC
B. securities regulation that is a U.S. Treasury Regulation section 1.163-5(c)(2)(i)(C), or any successor regulation, established under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), that relates to the classification of debt obligations as either 'bearer' or 'registered' for U.S. tax purposes and ensures that an issue of bearer debt satisfied 'reasonable arrangement' requirements
C. securities regulation defining an exemption through which corporations do not have to register their securities and usually do not have to file reports with the SEC
D. securities regulation defining an exemption through which corporations can issue unregistered securities to qualified foreign investors and foreign institutions

Answer: securities regulation that is a U.S. Treasury Regulation section 1.163-5(c)(2)(i)(C), or any successor regulation, established under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), that relates to the classification of debt obligations as either 'bearer' or 'registered' for U.S. tax purposes and ensures that an issue of bearer debt satisfied 'reasonable arrangement' requirements