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प्रश्न
State the protective functions of the Securities and Exchange Board of India.
State any three protective functions of the Securities and Exchange Board of India.
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उत्तर
The following are the protective functions of SEBI:
- Prohibition: SEBI prohibits fraudulent and unfair trade practices. In addition, it prevents the spreading of misleading statements, which are likely to affect the functioning of the securities market.
- Checks on insider trading: Insider trading refers to a situation wherein an individual connected with the company leaks out crucial information regarding the company, which may adversely affect its share prices. SEBI keeps a strict check on such practices.
- Promotion: SEBI encourages fair trade practices and promotes a code of conduct for the intermediaries to assist fair trade.
- Protection: SEBI undertakes various steps and protective measures to protect the interests of the investors in the financial markets.
- Controlling: The controlling of insider trading and imposing penalties for such practices.
Notes
Students should refer to the answer according to their questions.
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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.
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 fifty words:
Who manages SEBI?
Answer each of these questions in about fifty words:
Explain briefly the three functions of SEBI rolled into one body.
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.
________ regulates the functioning of Stock Exchange 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.
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 | ______________ |
Which of the following is the regulatory function of SEBI?
Which of the following is the development function of SEBI?
Under which method, the securities are sold only to some selected individuals and big institutional investors rather than to the public.
______ is an institution or organisation, which holds securities in electronic form, in which trading is done.
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 is the apex statutory body of capital market to which customers can complain to redress their grievances?
Zakira Ltd. wants to invest in treasury bills issued by RBI. What will be the minimum amount to be invested in Treasury Bill?
'Due to various malpractices and multiplied investors grievances the Govt. of India decided to set up a separate regulatory body to protect the interest of investors and to regulate the securities market.'
- Identify the regulatory body set up by Govt. of India for the above-stated purpose.
- State any one objective of the regulatory body identified in (a) above.
SEBI regulates the securities market in India.
When and by whom was SEBI established?
Why does SEBI regulate stock exchanges and securities markets?
For whom does SEBI develop and enforce a code of conduct?
How does SEBI address insider trading as a protective function?
To whom does SEBI provide training as a developmental function?
Which activities does SEBI allow to encourage capital market development?
What does a stock exchange do in relation to securities trading?
Between whom do stock brokers act as intermediaries?
On which matters do merchant bankers advise companies?
In what form do depositories maintain investors' securities?
Which are the two major depositories in India?
What does an investor submit when opening a demat account with a DP?
Which burdens does the depository system reduce?
What does the depository system enable regarding ownership?
How do credit rating agencies help investors make informed decisions?
Why does SEBI regulate and monitor credit rating agencies?
Which combination is a benefit of mutual funds?
