Question : Case Study 81
OPQ Ltd. is a technology startup planning to trade its shares on a stock exchange. The company's management is reviewing the protective functions of SEBI.
Question :
What is the main aim of SEBI's protective functions?
Option 1: Promoting economic growth
Option 2: Ensuring transparency
Option 3: Encouraging mergers
Option 4: Setting dividend rates
Correct Answer: Ensuring transparency
Solution : The correct answer is (b) Ensuring transparency
The main aim of SEBI's protective functions is to ensure transparency in the securities market. SEBI's protective functions are designed to safeguard the interests of investors and maintain the integrity and fairness of the market. By enforcing regulations, preventing fraudulent practices, ensuring accurate and timely disclosure of information, and prohibiting insider trading, SEBI promotes transparency. Transparency is crucial for investor confidence, fair market practices, and the overall health and stability of the financial system. It allows investors to make informed decisions based on accurate and reliable information, fostering trust and contributing to the development and growth of the market.
Question : Case Study 34
ABC Ltd. is a conglomerate planning to expand its operations. The company's management is considering the roles of SEBI in the financial market.
Which of the following is not a function of SEBI?
Option 1: Regulatory functions
Option 2: Protective functions
Option 3: Allocation of resources
Option 4: Developmental functions
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