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Business Studies · 2023 · 3 marks
Financial MarketsSecurities and Exchange Board of India (SEBI) - Objectives and Functions3 marksshort answer
CBSE 2023 · Region 5 · Set 2 · Q24
State any three regulatory functions of Securities andExchange Board of India.State any three functions of stock exchange.
State any three regulatory functions of Securities and
Exchange Board of India.
State any three functions of stock exchange.
Marking-scheme solution
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 audits 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.
should be
Functions of a stock exchange are:
(a)
It provides liquidity and marketability to existing securities.
It helps in determining the price of securities through the forces
of demand and supply.
(c)
It ensures safety of transactions because it is well regulated and
transactions are performed within the existing legal framework.
(d)
It contributes to economic growth through the process of
disinvestment and reinvestment.
(e)
It helps in spreading of equity cult by regulating new issues and
better trading practices.
(f)
It provides scope for healthy speculation to ensure liquidity and
price continuity in the stock market.
should be
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CBSE Class 12 Business Studies past-paper question from the 2023board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.