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प्रश्न
Answer the question in about fifty words:
What is SEBI and what is its role?
उत्तर १
The Securities and Exchange Board of India or SEBI is the regulator for the securities market in India.
Role of SEBI:
- It is a supervising and regulatory body to check certain malpractices and works for promoting the securities markets in India.
- It has three functions rolled into one body: quasi-legislative, quasi-judicial and quasi executive.
- It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders.
उत्तर २
Meaning: -
Stock exchange is a specific place where trading of the securities is arranged in an organized method. In simple words, it is a place where shares, debentures, and bonds (securities) are purchased and sold. The term securities include equity shares, preference shares, debentures, government bonds, etc. including mutual funds.
The government of India established the market watchdog i.e. Securities Exchange Board of India (SEBI) IN April 1988.
SEBI as securities Exchange Board of India became a statutory body under SEBI Act, 1992, and its Head Office located in Mumbai. At present, SEBI have offices in Mumbai, Calcutta, New Delhi, and Chennai. SEBI consists of the following members.
- A Chairman
- Two members from the Ministries of the Central Government. Dealing with Finance and Law
- Two other members to be appointed by the Central Government.
In order to regulate and promote the capital market, SEBI performs the following Role.
- Regulating the business in stock exchanges and many other securities markets.
- Registering and regulating the working of stockbrokers, share transfer agents, sub-brokers, bankers to an issue, etc.
- Promoting and regulating self-regulatory organizations.
- Prohibiting fraudulent and unfair trade practices relating to the securities market.
- Registering and regulating the working of venture capital funds and collective investment schemes including mutual funds.
- Promoting Investor education and training of intermediaries of the securities market.
- Prohibiting insider trading in securities.
- Conducting research and carrying out publications.
- Calling for information, form undertaking inspection, conducting inquiries and audits of stock exchanges and market intermediaries.
APPEARS IN
संबंधित प्रश्न
The company has to obtain consent of ............................ if issue of debentures exceeds Rs. 1 crore.
- SEBI
- Registrar
- National Stock Exchange
Mr. Vikas Mehra was the Chairman of 'IBM 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 the taking over of 'UK Bank'. Mr. Vikas Mehra knew that the share price of 'IBM 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 Mukand and asked him to invest Rs 4 crores in shares of his bank promising him the capital gains. As expected after the announcement, the share prices went up by 50% and the market price of Mukand's shares was now Rs 6 crores. Mukand earned a profit of Rs 2 crores. He gave Rs 1 crore to Vikas Mehra and kept Rs 1 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 Vikas Mehra.
Quoting the lines from the above para identify and state any two functions 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.
Answer the following question:
State the protective functions of the Securities and Exchange Board of India.
Explain the objectives and functions of the SEBI.
Answer each of these questions in about fifteen words
What do you understand by private placement?
Answer each of these questions in about fifteen words:
State three functions of SEBI rolled into one body.
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
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.
Select the correct answer from the options given below and rewrite the statement.
________ regulates the functioning of Stock Exchange in India.
Attempt the following:
Write a reply to a complaint by an investor
‘MYKAA Limited ‘is dealing in all types of cosmetic products. It is enjoying increased demand for its product during the last few years. For the purpose of expansion the company needs ₹ 100 crores as additional capital. The company decides to raise funds through equity shares. Chirag Kapoor, the finance manager of the company recommended that the shares may be sold through issuing houses or brokers. Identify and explain the method recommended by Mr.Kapoor through which the company can raise additional funds for expansion purposes.
State any five regulatory functions of the Securities and Exchange Board of India
Which of the following is the development function of SEBI?
Who among the following is the Chairman of SEBI as of August 2018
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 stands for SEBI?
Which of the following is not a Protective Function performed by SEBI?
State the first development bank of the country
Of the following sources of funds, ______ are not Borrowed Funds.
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?
Which of the following statements is incorrect?
State any three objectives of the Securities Exchange Board of India.
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.
