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State any three objectives of the Securities Exchange Board of India. - Business Studies

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प्रश्न

State any three objectives of the Securities Exchange Board of India.

Describe the objectives of SEBI.

दीर्घउत्तर
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उत्तर

Following are the objectives of SEBI:

  1. To regulate stock exchanges and the securities industry to promote their orderly functioning.
  2. To protect the rights and interests of investors, particularly individual investors and to guide and educate them.
  3. To prevent trading malpractices and achieve a balance between self regulation by the securities industry and its statutory regulation.
  4. To regulate and develop a code of conduct and fair practices by intermediaries like brokers, merchant bankers etc., with a view to making them competitive and professional.

Thus, SEBI acts as the watchdog of the securities market, ensuring transparency, fairness, and investor protection.

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Notes

Students should refer to the answer according to their question and preferred marks.

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अध्याय 22: Business Regulators and Intermediaries - EXERCISES [पृष्ठ ३०८]

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गोयल ब्रदर्स प्रकाशन Business Studies [English] Class 12 ISC
अध्याय 22 Business Regulators and Intermediaries
EXERCISES | Q III. 2. (i) | पृष्ठ ३०८

वीडियो ट्यूटोरियलVIEW ALL [1]

संबंधित प्रश्न

The company has to obtain consent of ............................ if issue of debentures exceeds Rs. 1 crore.

  1. SEBI
  2. Registrar
  3. National Stock Exchange

State the protective functions of the Securities and Exchange Board of India.


Explain the objectives and functions of the SEBI.


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 the question in about fifty words:

What is SEBI and what is its role?


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.


What is the power of SEBI?


Depository Participant


State any three Development functions of Securities and Exchange Board of India.


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.


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.


Select the correct option form the bracket.

Group ‘A’ Group ‘B’
Regulator of 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 objectives of the SEBI?


Under which method, the securities are sold only to some selected individuals and big institutional investors rather than to the public.


______ is a legally enforceable document and helps to settle disputes/claims between the investor and the broker. It contains details of the number of shares bought or sold, the price, the date and time of deal, and the brokerage charges. 


Rishu's friend Devina works as a Finance Manager in Perfect Solutions Ltd. Devina in a meeting with the directors of the company came to know that the firm would soon be declaring a bonus issue which would lead to an increase in the price of shares. On this basis, Devina advised Rishu to purchase the shares of Perfect Solutions Ltd., who thus bought the shares. SEBI can control malpractices like these through which of the following functions:


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?


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?


Which is the apex statutory body of capital market to which customers can complain to redress their grievances?


Read the following text and answer the following question on the basis of the same:

Mr. A. Bose is running a successful business. Mr. Bose is the owner of R. K. Cement Ltd. Mr. Bose decided to expand his business by acquiring a Steel Factory. This required an investment of~ 60 crores. To seek advice in this matter, he called his financial advisor Mr. T. Ghosh who advised him about the judicious mix of equity (40%) and Debt (60%). Employ more of cheaper debt may enhance the EPS. Mr. Ghosh also suggested him to take loan from a financial institution as the cost of raising funds from financial institutions is low. Though this will increase the financial risk but will also raise the return to equity shareholders. He also apprised him that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax-deductible expense for computation of tax liability. After due deliberations with Mr. Ghosh, Mr. Bose decided to raise funds from a financial institution.

In the above case Mr. Ghosh suggested to raised more funds from debt. Higher debt-equity ratio results in:


Which of the following statements is incorrect?


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.


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