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प्रश्न
Answer the question in about fifty words:
What is SEBI and what is its role?
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उत्तर १
The Securities and Exchange Board of India or SEBI is the regulator for the securities market in India.
Role of SEBI:
- It is a supervising and regulatory body to check certain malpractices and works for promoting the securities markets in India.
- It has three functions rolled into one body: quasi-legislative, quasi-judicial and quasi executive.
- It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders.
उत्तर २
Meaning: -
Stock exchange is a specific place where trading of the securities is arranged in an organized method. In simple words, it is a place where shares, debentures, and bonds (securities) are purchased and sold. The term securities include equity shares, preference shares, debentures, government bonds, etc. including mutual funds.
The government of India established the market watchdog i.e. Securities Exchange Board of India (SEBI) IN April 1988.
SEBI as securities Exchange Board of India became a statutory body under SEBI Act, 1992, and its Head Office located in Mumbai. At present, SEBI have offices in Mumbai, Calcutta, New Delhi, and Chennai. SEBI consists of the following members.
- A Chairman
- Two members from the Ministries of the Central Government. Dealing with Finance and Law
- Two other members to be appointed by the Central Government.
In order to regulate and promote the capital market, SEBI performs the following Role.
- Regulating the business in stock exchanges and many other securities markets.
- Registering and regulating the working of stockbrokers, share transfer agents, sub-brokers, bankers to an issue, etc.
- Promoting and regulating self-regulatory organizations.
- Prohibiting fraudulent and unfair trade practices relating to the securities market.
- Registering and regulating the working of venture capital funds and collective investment schemes including mutual funds.
- Promoting Investor education and training of intermediaries of the securities market.
- Prohibiting insider trading in securities.
- Conducting research and carrying out publications.
- Calling for information, form undertaking inspection, conducting inquiries and audits of stock exchanges and market intermediaries.
APPEARS IN
संबंधित प्रश्न
Mr. Vikas Mehra was the Chairman of 'IBM Bank'. The Bank was earning good profits. Shareholders were happy as the bank was paying regular dividends. The market price of their shares was also steadily rising. The bank was about to announce the taking over of 'UK Bank'. Mr. Vikas Mehra knew that the share price of 'IBM Bank' would rise on this announcement. Being a part of the Bank, he was not allowed to buy shares of the bank. He called one of his rich friends Mukand and asked him to invest Rs 4 crores in shares of his bank promising him the capital gains. As expected after the announcement, the share prices went up by 50% and the market price of Mukand's shares was now Rs 6 crores. Mukand earned a profit of Rs 2 crores. He gave Rs 1 crore to Vikas Mehra and kept Rs 1 crore with him. On regular inspection and by conducting enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this irregularity. SEBI imposed a heavy penalty on Vikas Mehra.
Quoting the lines from the above para identify and state any two functions performed by SEBI in the above case.
Mr. Aditya Gupta was the chairman of ‘Vandan Bank’. The Bank was earning good profits. Shareholders were happy as the bank was paying regular dividends. The market price of their shares was also steadily rising. The bank announced taking over of ‘Karur Bank’. Aditya Gupta knew that the share price of Vandan Bank would rise on this announcement. Being a part of the bank, he was not allowed to buy shares of the bank. He called one of his rich friends Nimesh and asked him to invest Rs 6 crores in the shares of his bank promising him the capital gain.
As expected, the share prices went up by 40% and the market price of Nimesh’s shares was now Rs 8.4 crores. He had earned a profit of Rs 2.4 crores. He gave Rs 1.2 crore to Mr. Aditya Gupta and kept Rs 1.2 crore with him. On regular inspection and by conducting enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this irregularity. SEBI imposed a heavy penalty on Aditya Gupta. By quoting the lines from the above para identify and state any two functions that were performed by SEBI in the above case.
What are the objectives of SEBI?
India’s largest domestic investor Life Insurance Corporation of India has once again come to government’s rescue by subscribing 70% of Hindustan Aeronautics Rs.4,200-crore initial public offering.
a. Which market is being reflected in the above case?
b. State which method of floatation in the above identified market is being highlighted in the case? (Primary Market)
c. Explain any two other methods of floatation. (Private Placement, Offer through prospectus, offer for sale).
Answer each of these questions in about fifteen words:
What is SEBI?
Answer each of these questions in about fifteen words:
State three functions of SEBI rolled into one body.
Answer each of these questions in about fifteen words:
When was SIDBI established?
What is the power of SEBI?
Depository Participant
State any three Development functions of Securities and Exchange Board of India.
Write a word or a term or a phase which can substitute for the following:
Institution that regulates functioning of stock exchanges and intermediaries in the securities market.
State whether the statement is true or false:
SEBI protects the interest of investors in securities market.
Select the correct option form the bracket.
| Group ‘A’ | Group ‘B’ |
| Regulator of Securities Market | ______________ |
What are the objectives of the SEBI?
Which of the following is the regulatory function of SEBI?
Which of the following is the development function of SEBI?
State the year in which Securitites Board of India was established?
The basic purpose of SEBI is to create an environment to facilitate efficient mobilisation and allocation of resources through the securities markets. Who are the constituents of this market for whom SEBI aims at creating a conducive environment?
Which of the following is not a Protective Function performed by SEBI?
The Securities and Exchange Board of India was established by the Government of India and was given a statutory status in ______.
State the first development bank of the country
Which of the following is/are the 'Developmental Functions' of Securities and Exchange Board of India?
______ debt-equity ratio is preferred by the commercial banker over the years as it indicates financial strength of a unit.
Which of the following statements is incorrect?
Which of the following is not a function of Securities and Exchange Board of India (SEBI)?
SEBI calls for information and issues a show cause notice to stock exchange and its officials seeking explanation and conducting audit and enquiry. Which function is SEBI performing?
SEBI regulates the prices of the securities listed in the market.
