Question : Case Study 80
LMN Corporation is a well-established company planning to raise funds for its expansion projects. The company's management is considering the regulatory functions of SEBI.
Question :
What is the primary regulatory role of SEBI?
Option 1: Allocating resources to companies
Option 2: Facilitating trading on stock exchanges
Option 3: Protecting the rights of investors
Option 4: Providing loans to companies
Correct Answer: Protecting the rights of investors
Solution : The correct answer is (c) Protecting the rights of investors
The primary regulatory role of the Securities and Exchange Board of India (SEBI) is to protect the rights of investors. SEBI is the regulatory body for the securities market in India. It oversees and regulates the securities market to ensure fair and transparent dealings, protect the interests of investors, and promote a conducive environment for investment. SEBI's responsibilities include ensuring that companies provide accurate and adequate information to the investors, preventing fraudulent and unfair trade practices, and maintaining market integrity and transparency. Through its regulations and guidelines, SEBI plays a crucial role in safeguarding the rights and interests of investors in the securities market.
How does SEBI protect the rights of investors?
Option 1: By issuing new shares
Option 2: By regulating credit rating agencies
Option 3: By preventing fraudulent activities
Option 4: By setting interest rates
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