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Business Studies · 2025 · 3 marks
CBSE 2025 · Region 2 · Set 1 · Q23
(a) Give the meaning of 'Capital Market'. Differentiate between 'Capital Market' and 'Money Market' on the basis of: (i) Participants (ii) Instruments
(a)
Give the meaning of 'Capital Market'. Differentiate
between 'Capital Market' and 'Money Market' on the basis
of:
(i) Participants
(ii)
Instruments
OR
State any three 'Regulatory functions' of Securities and
Exchange Board of India.
Marking-scheme solution
Meaning of Capital Market
Capital Market means the facilities and institutional
arrangements through which long term funds, both debt and
equity, are raised and invested.
Difference between Capital Market and Money Market
| Basis | Capital Market | Money Market | |
| (i) | Participants | The participants in Capital market are financial institutions, banks, corporates, foreign investors and retail investors. | The participants in Money market are RBI, financial institutions, banks, corporates. |
| (ii) | Instruments | Instruments like shares, debentures and bonds are traded in Capital market. | Instruments like treasury bill, commercial paper, certificates of deposit, call money and commercial bill are traded in money market. |
Regulatory functions of Securities and Exchange Board
of India are :
(i)
Registration of brokers and sub brokers and other players in
the market.
(ii)
Registration of collective investment schemes and mutual
funds.
(iii)
Regulation of stock brokers, portfolio exchanges,
underwriters and merchant bankers.
(iv)
Regulation of takeover bids by companies.
(v)
Calling for information by undertaking inspection,
conducting enquiries and audit of stock exchanges and
intermediaries.
(vi)
Levying fee or other charges for carrying out the purposes
of the SEBI Act, 1992.
(vii)
Performing and exercising such powers under Securities
Contract (Regulation) Act $\displaystyle 1956$ as may be delegated by the
Government of India.
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CBSE Class 12 Business Studies past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.