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Business Studies · 2022 · 5 marks
Financial MarketsSecurities and Exchange Board of India (SEBI) - Objectives and Functions5 markslong answer
CBSE 2022 · Region 4 · Set 2 · Q9
State any three protective and any two regulatory functions Securities and Exchange Board of India.
State any three protective and any two regulatory functions
Securities and Exchange Board of India.
Marking-scheme solution
Protective functions of SEBI:
(i)
It prohibits fraudulent and unfair trade practices like
misleading statements, manipulations, price rigging etc.
(ii)
It controls insider trading and imposes penalties for such
practices.
(iii)
It undertakes steps for investor protection.
(iv)
It promotes fair practices and code of conduct in securities
market.
Regulatory functions of Securities and Exchange Board of
India are :
(i)
It registers brokers and sub brokers and other players in the
market.
(ii)
It registers collective investment schemes and mutual
funds.
(iii)
It regulates stock brokers, portfolio exchanges,
underwriters and merchant bankers.
(iv)
It regulates takeover bids by companies.
(v)
It calls for information by undertaking inspection,
conducting enquiries and audit of stock exchanges and
intermediaries.
(vi)
It levies fee or other charges for carrying out the purposes
of the Act.
(vii)
It performs and exercises 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 2022 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.