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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.
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संबंधित प्रश्न
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 fifteen words:
When was SIDBI established?
State any three Development functions of Securities and Exchange Board of India.
Write a word or a term or a phase which can substitute for the following:
Regulator of securities market in India.
‘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
What are the protective 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
State the year in which Securitites Board of India was established?
Which of the following is not a Protective Function performed by SEBI?
The Securities and Exchange Board of India was established by the Government of India and was given a statutory status in ______.
Of the following sources of funds, ______ are not Borrowed Funds.
Which of the following is/are the 'Developmental Functions' of Securities and Exchange Board of India?
______ debt-equity ratio is preferred by the commercial banker over the years as it indicates financial strength of a unit.
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:
Which of the following statements is incorrect?
'Due to various malpractices and multiplied investors grievances the Govt. of India decided to set up a separate regulatory body to protect the interest of investors and to regulate the securities market.'
- Identify the regulatory body set up by Govt. of India for the above-stated purpose.
- State any one objective of the regulatory body identified in (a) above.
SEBI calls for information and issues a show cause notice to stock exchange and its officials seeking explanation and conducting audit and enquiry. Which function is SEBI performing?
