Question : Assertion: SEBI's protective functions aim to safeguard the interests of investors.
Reason: SEBI's protective functions focus solely on promoting company profitability.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Assertion is true, but the reason is false.
Solution : The correct answer is (c) Assertion is true, but the reason is false.
The assertion is true. SEBI (Securities and Exchange Board of India) does indeed have protective functions aimed at safeguarding the interests of investors. These functions are in place to ensure that the securities market operates fairly and investors are protected from fraudulent activities or unfair practices.
The reason is false. SEBI's protective functions are not solely focused on promoting company profitability. While a well-regulated and fair securities market can contribute to a company's sustainability and attractiveness to investors, the primary goal of SEBI's protective functions is to maintain market integrity and protect investors rather than being aimed solely at promoting company profitability.
Question : Assertion: SEBI's regulatory functions include regulating credit rating agencies.
Reason: SEBI's regulatory functions focus solely on monitoring stock exchanges.
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