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प्रश्न
Answer the following question:
State the protective functions of the Securities and Exchange Board of India.
State any three protective functions of Securities and Exchange Board of India.
उत्तर
The followings 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.
Notes
Students should refer to the answer according to their questions.
APPEARS IN
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.
Answer each of these questions in about fifteen words
What do you understand by private placement?
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
What are the objectives of the 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
The Securities and Exchange Board of India was established by the Government of India and was given a statutory status in ______.
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?
State any three objectives of the Securities Exchange Board of India.
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:
SEBI regulates the securities market in India.
SEBI regulates the prices of the securities listed in the market.
