SEBI and Securities Market Regulation in India
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Questions and Answers

What is the primary role of SEBI?

  • To regulate banking transactions
  • To oversee the functioning of the Reserve Bank of India
  • To promote the development of the insurance market
  • To protect the interests of investors in securities (correct)
  • What is one of the key functions of SEBI?

  • To promote the development of the real estate market
  • To regulate securities market intermediaries (correct)
  • To regulate the functioning of commercial banks
  • To oversee the functioning of the stock exchanges abroad
  • Why does SEBI conduct programs and initiatives?

  • To oversee the functioning of the commodity market
  • To promote the development of the derivatives market
  • To regulate the functioning of stock exchanges abroad
  • To educate investors about the securities market and their rights (correct)
  • What is one of the measures taken by SEBI to maintain market integrity?

    <p>To take measures to curb fraudulent practices</p> Signup and view all the answers

    What does SEBI do to ensure transparency and protect investors in mutual funds?

    <p>Sets rules and regulations for the operation of mutual funds</p> Signup and view all the answers

    What is another role of SEBI?

    <p>To enforce corporate governance standards</p> Signup and view all the answers

    Study Notes

    Securities and Exchange Board of India (SEBI)

    • Established in 1988 and given statutory powers on April 12, 1992
    • Primary role: protect investors' interests in securities and promote development and regulation of securities market

    Key Functions of SEBI

    • Regulates stock exchanges in India to ensure fair trading practices and protect investors' interests
    • Regulates securities market intermediaries, including brokers, underwriters, and credit rating agencies, to ensure adherence to guidelines and standards
    • Conducts programs and initiatives to educate investors about the securities market and their rights
    • Takes measures to curb insider trading, fraudulent practices, and other market manipulations to maintain market integrity
    • Sets rules and regulations for the operation of mutual funds to ensure transparency and protect investors
    • Works to develop and streamline the capital market, making it more efficient and accessible for investors and companies

    Corporate Governance

    • Enforces corporate governance standards to ensure companies adhere to ethical practices and transparency

    Importance of SEBI

    • Plays a crucial role in maintaining a healthy, fair, and transparent securities market in India

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    Description

    This quiz covers the role and functions of the Securities and Exchange Board of India (SEBI) in regulating the securities market in India.

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