CBSE 2026 · Region 2 · Set 1 · Q24

Riya, a software engineer wanted to invest a part of her savings in the

stock-market. Encouraged by some online discussions, she came across a

company ‘Smart-Tech Ltd.’, whose stock price was rising very fast. News

began to circulate that company had got a large government contract and

she believed that its share price would double soon. Convinced by the

positive claims, Riya also invested in the shares of this company. Over the

next week, the shares continued to rise but suddenly, the price started

crashing. Within days, her investment had lost more than $\displaystyle 60$% of its

value.

Riya started researching and discovered that the news about the

government contract was false. Securities and Exchange Board of India

(SEBI) also took immediate notice of the situation and called for detailed

trading information and conducted enquiries and inspections. After

examining trading information and conducting enquiries, SEBI found that

a group of traders had spread false information to artificially boost the

stock price. By taking action against the group of traders, SEBI made it

clear that fraudulent and unfair trade practices are strictly prohibited.

(i)

Quote lines from the above to identify the two functions being

(i)

performed by SEBI.

(ii)

Also state one more function of each category of the functions

(ii)

identified in (i) above.