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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
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.
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?
Explain the objectives and functions of the SEBI.
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 is SEBI?
Answer the question in about fifty words:
What is SEBI and what is its role?
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.
Depository Participant
State whether the statement is true or false:
SEBI protects the interest of investors in securities market.
Attempt the following:
Write a reply to a complaint by an investor
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Under which method, the securities are sold only to some selected individuals and big institutional investors rather than to the public.
Who among the following is the Chairman of SEBI as of August 2018
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?
Of the following sources of funds, ______ are Owner's Funds.
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.
Zakira Ltd. wants to invest in treasury bills issued by RBI. What will be the minimum amount to be invested in Treasury Bill?
Which body is the regulator of the securities market in India?
When and by whom was SEBI established?
In which securities does SEBI protect investors' interests?
Which practices does SEBI seek to prevent as an objective?
For whom does SEBI develop and enforce a code of conduct?
Which examples of fraudulent and unfair trade practices does SEBI prohibit?
To whom does SEBI provide training as a developmental function?
What does SEBI educate investors about?
Which activities does SEBI allow to encourage capital market development?
What does a stock exchange do in relation to securities trading?
Which are the two major stock exchanges in India?
Between whom do stock brokers act as intermediaries?
On which matters do merchant bankers advise companies?
What does the depository system enable regarding ownership?
Which symbols may credit rating agencies assign?
Which are the leading credit rating agencies in India?
Which are other types of mutual fund schemes?
Which investment risk benefit do mutual funds provide?
What role do mutual funds play under SEBI's regulation?
