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Question
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.
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Solution
Securities Exchange Board of India (SEBI).
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RELATED QUESTIONS
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.
Answer each of these questions in about fifty words:
Explain briefly the three functions of SEBI rolled into one body.
Select the correct option form the bracket.
| Group ‘A’ | Group ‘B’ |
| Regulator of Securities Market | ______________ |
State any five regulatory functions of the Securities and Exchange Board of India.
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.
Of the following sources of funds, ______ are Owner's Funds.
Zakira Ltd. wants to invest in treasury bills issued by RBI. What will be the minimum amount to be invested in Treasury Bill?
What was SEBI's initial status?
In which securities does SEBI protect investors' interests?
Which examples of fraudulent and unfair trade practices does SEBI prohibit?
In what form do depositories maintain investors' securities?
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?
Which issues may lead to incorrect ratings?
Why does SEBI regulate and monitor credit rating agencies?
Which investment risk benefit do mutual funds provide?
