Find out whether there is any grammatical error in below sentence. In spite of the rumours / of an impending takeover / by the government / Ramlal bought more shares of that company.

In spite of the rumours
of an impending takeover
by the government
Ramlal bought more shares of that company E. No error

The correct answer is: E. No error

The sentence is grammatically correct. The phrase “in spite of” is used to introduce a clause that expresses a contrast to the main clause. In this case, the main clause is “Ramlal bought more shares of that company.” The phrase “of an impending takeover” is a prepositional phrase that modifies the noun “rumours.” The phrase “by the government” is a prepositional phrase that modifies the noun “takeover.”

The sentence can be paraphrased as follows: “Even though there were rumours of an impending takeover by the government, Ramlal bought more shares of that company.”