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Business Studies · 2023 · 4 marks
Financial MarketsSecurities and Exchange Board of India (SEBI) - Objectives and Functions4 marksshort answer
CBSE 2023 · Region 1 · Set 3 · Q29
(a) Keeping in mind the emerging nature of the securities market in India, Securities and Exchange Board of India was entrusted with the twin task of…
Keeping in mind the emerging nature of the securities market in
India, Securities and Exchange Board of India was entrusted with
the twin task of both regulation and development of the securities
market.
State any two regulatory and two development functions of it.
Explain the following factors affecting the working capital
requirements of an enterprise :
(i)
Nature of business
(ii)
Availability of raw material
Marking-scheme solution
(a)
Functions of Securities Exchange Board of India:
Regulatory Functions:
1.Registration of brokers and sub- brokers and other
players in the market.
2.Registration of collective investment schemes and mutual
funds.
3.Regulation of stock brokers, portfolio exchanges,
underwriters and merchant bankers and the business in
stock exchanges and any other securities market.
4.Regulation of takeover bids by companies.
5.Calling for information by under- taking inspection,
conducting enquiries and audits of stock exchanges and
intermediaries.
6.Levying fee or other charges for carrying out the
purposes of the Act.
7.Performing and exercising such power under Securities
Contracts (Regulation) Act $\displaystyle 1956$, as may be delegated by
the Government of India.
Development Functions:
1.Training of intermediaries of the securities market.
2.Conducting research and publishing information useful to
all market participants.
3.Undertaking measures to develop the capital markets by
adapting a flexible approach.
OR
Q. (b) Explain the following factors affecting the
working capital requirements of an enterprise:
(i)
Nature of business
(ii)
Availability of raw material
(b)
Factors affecting the working capital requirements
of an enterprise:
• (i) Nature of business
A trading organisation usually needs a smaller
amount of working capital compared to a
• manufacturing organisation.
• This is because there is no processing.
Similarly, service industry which usually do not have
to maintain inventory require less working capital.
• (ii) Availability of raw material
If the required materials are available freely and
• continuously, lower stock levels may suffice.
However, if raw materials do not have record of un-
interrupted availability, higher stock levels may be
• required.
Larger the lead time, larger the quantity of material
to be stored.
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CBSE Class 12 Business Studies past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.