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Question
State with reason whether the following statement is True or False:
The objective of SEBI is to protect interest of the companies.
Options
True
False
Solution
This statement is False.
Reasons:
The main objectives of SEBI are as under.
- To promote fair dealing by the issue of securities and to ensure a market place where (they) companies or institutions can raise funds at relatively low cost.
- To provide protection to the investors and protect their rights and interests so that there is a steady flow of savings into the market.
- To regulate and develop a code of conduct and fair practices by intermediaries like brokers etc. with a view to make them competitive and professional.
- It aims at protecting investors and safeguarding the rights and interests of small to big investors alike.
- It aims to provide a code of conduct for all the players in the market like brokers and provide the best professional and competitive atmosphere in the Indian Capital market.
- 6. SEBI therefore is more pro–investor than pro – company.
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