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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
The company has to obtain consent of ............................ if issue of debentures exceeds Rs. 1 crore.
- SEBI
- Registrar
- National Stock Exchange
Mr. Sanjay Nehra was the Chairman of 'Taran 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 taking over of 'Vena Bank.' Mr. Sanjay Nehra knew that the share price of 'Taran 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 Sudhir and asked him to invest Rs 5 crores in shares of his bank promising him the capital gains. As expected the share prices went up by 40% and the market price of Suhir's shares was now Rs 7 crores. He earned a profit of Rs 2 crores. He gave Rs 1 crore to Mr. Sanjay Nehra and kept Rs 1 crore with himself. On regular inspection and by conducting enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this irregularity. The SEBI imposed a heavy penalty on Mr. Sanjay Nehra.
By quoting the lines from the above para identify and state any two functions that were performed by SEBI in the above case.
State the protective functions of the Securities and Exchange Board of India.
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).
Lalita wants to buy shares of Akbar Enterprises, through her broker Kushvinder. She has a Demat Account and a bank account for cash transactions in the securities market. Discuss the subsequent steps involved in the screen-based trading for buying and selling of securities in this case.
Answer each of these questions in about fifteen words
What do you understand by private placement?
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 fifty words:
Explain briefly the three functions of SEBI rolled into one body.
Answer each of these questions in about one hundred and fifty words:
Explain the powers SEBI has been vested with for discharging of its functions efficiently.
Answer each of these questions in about fifteen words:
When was SIDBI established?
Depository Participant
Select the correct answer from the options given below and rewrite the statement.
________ was established as a statutory body to regulate the securities market in India.
Write a word or a term or a phase which can substitute for the following:
Regulator of securities market in India.
State whether the statement is true or false:
SEBI protects the interest of investors in securities market.
‘MYKAA Limited ‘is dealing in all types of cosmetic products. It is enjoying increased demand for its product during the last few years. For the purpose of expansion the company needs ₹ 100 crores as additional capital. The company decides to raise funds through equity shares. Chirag Kapoor, the finance manager of the company recommended that the shares may be sold through issuing houses or brokers. Identify and explain the method recommended by Mr.Kapoor through which the company can raise additional funds for expansion purposes.
What are the protective function of SEBI?
Who among the following is the Chairman of SEBI as of August 2018
Which of the following stands for SEBI?
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?
Of the following sources of funds, ______ are not Borrowed Funds.
Which of the following is/are the 'Developmental Functions' of Securities and Exchange Board of India?
Assertion (A): Certificates of Deposit (CD) are secured, negotiable, long-term instruments in bearer form.
Reason (R): A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit cheaper in comparison as banks raise funds from these sources.
______ debt-equity ratio is preferred by the commercial banker over the years as it indicates financial strength of a unit.
Which of the following is not a function of Securities and Exchange Board of India (SEBI)?
SEBI regulates the securities market in India.
