Advertisements
Advertisements
Questions
State any three objectives of the Securities Exchange Board of India.
Describe the objectives of SEBI.
Advertisements
Solution
Following are the objectives of SEBI:
- To regulate stock exchanges and the securities industry to promote their orderly functioning.
- To protect the rights and interests of investors, particularly individual investors and to guide and educate them.
- To prevent trading malpractices and achieve a balance between self regulation by the securities industry and its statutory regulation.
- 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.
Notes
Students should refer to the answer according to their question and preferred marks.
APPEARS IN
RELATED QUESTIONS
What are the objectives of SEBI?
Answer the question in about fifty words:
What is SEBI and what is its role?
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.
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.
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
State any five regulatory functions of the Securities and Exchange Board of India.
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.
Who among the following is the Chairman of SEBI as of August 2018
Which of the following can be a depository participant (DP)?
______ 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:
Which of the following is not a Protective Function performed by SEBI?
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:
Zakira Ltd. wants to invest in treasury bills issued by RBI. What will be the minimum amount to be invested in Treasury Bill?
Zakira Ltd. wants to invest in treasury bills issued by RBI. What will be the minimum amount to be invested in Treasury Bill?
Which of the following is not a function of Securities and Exchange Board of India (SEBI)?
STATEMENT I: Electronic holdings can be converted into physical certificates with the process of dematerialisation.
STATEMENT II: There is no danger of theft, loss or forgery of share certificates in dematerialisation.
Choose the correct option from the following:
Which body is the regulator of the securities market in India?
What was SEBI's initial status?
When did SEBI become a statutory body, and under which Act?
Where is the head office of SEBI located?
In which securities does SEBI protect investors' interests?
Why is SEBI called the watchdog of the Indian securities market?
Which practices does SEBI seek to prevent as an objective?
What does SEBI promote in the securities market as a protective function?
What does a stock exchange do in relation to securities trading?
Which are the two major stock exchanges in India?
Through whom do depositories provide their services?
Which risks involving share certificates does the depository system eliminate?
How do credit rating agencies help investors make informed decisions?
What do credit rating agencies monitor, and what do they promote among borrowers?
How do credit rating agencies help borrowers raise funds?
Which is the oldest mutual fund in India?
Which are other types of mutual fund schemes?
Which combination is a benefit of mutual funds?
