Question

What are the objectives of the SEBI?

Options

• Regulation

• Protection

• Prevention

• All of the above

Answer 1

All of the above

Explanation - 

The Securities and Exchange Board of India (SEBI) was founded to ensure the smooth and healthy expansion of India's securities market. The following bullet points reflect SEBI's overall goals.

1. Regulation: The primary goal of SEBl is to regulate the functioning of the stock exchange and securities market. Its goal is to provide a safe and secure environment for issuers of securities (i.e. corporations) to raise financing.
2. Investor protection: SEBI tries to educate investors and give investment recommendations. It gives them sufficient and trustworthy information about the businesses. As a result, they are better able to make informed investing selections.
3. Prevention : The main motivation for the founding of SEBI was to combat securities trading malfeasance. Insider trading, rule and regulation violations, and non-compliance with the Companies Act, for example, diminish investor confidence. SEBI tries to prevent these wrongdoings by achieving a balance between a company's self-regulation and lawful statutory rules.