Question

Briefly explain any two business regulators.

Answer 1

1. Reserve Bank of India:  The Reserve Bank of India (RBI) is a national institution and a pillar of the thriving Indian economy. It is the country's central bank. It is in charge of the monetary policies governing the Indian rupee, the national currency. The RBI's primary functions are to issue money, maintain monetary stability in India, run the currency, and maintain the country's credit system.
   Role of RBI as a regulator:
   1. Controller of credit: Credit is created by commercial banks lending money. They might give out too much or too little credit. It is vital to exercise credit control. In order to maintain economic stability. The central bank exercised stringent control over private banks' credit-creating power. This credit control is qualitative as well as quantitative in character.
   2. Monopoly over note issue: The Central Bank has a monopoly on the issuance of bank notes of any denomination. This is referred to as central bank monetary authorities. The central bank's banknotes have unlimited legal tender throughout the country.
2. Securities and Exchange Board of India (SEBI): The Securities and Exchange Board of India (SEB) was established in Bombay on April 12, 1992, following the guiding principles of the Securities and Exchange Board of India Act, 1992. It is also recognised as the Indian Stock Exchange's primary regulator. SEB's primary aim is to monitor and regulate the Indian capital and securities markets, while also taking steps to protect the best interests of the investor community. It is also in charge of developing regulations and procedures that must be followed by the relevant agencies in order to report any malpractices. It is also in charge of fostering the development of the securities market through proper and fair operation by inspecting brokers, underwriters, and so on.