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Question
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:
Options
Protective functions
Regulatory functions
Development functions
All of the above
Solution
Protective functions
Explanation -
The protective function refers to SEBI's role in safeguarding the interests of investors and other financial participants. False advertising, manipulations, price fixing, and other deceptive and unfair trading activities are prohibited.
