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

Which of the following definitions best describes the instance 'SEC Exemption 3(c)(7)'?

A. securities regulation defining an exemption through which corporations can issue unregistered securities to qualified foreign investors and foreign institutions
B. 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
C. securities regulation that applies to broker-dealers registered under section 15(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(b)), or that are security-based swap dealers or major security-based swap participants under section 15F(b) of the Act (15 U.S.C. 78o-10(b)), requiring them to maintain reserve accounts to protect customer funds, segregate customer securities in custody accounts, and if a security sold long has not been delivered within 10 business days after the settlement date, requires them to either buy the customer in, or apply for and receive an extension from its designated examining authority
D. securities regulation that is part of Regulation SHO that is a circuit breaker limiting short sales to prevent them from causing a security's price to drop further after a significant decline

Answer: 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