Question :
Identify the function performed by SEBI.
"It controls insider trading, and takeover bids and imposes penalties for such practices."
Option 1: Protective functions
Option 2: Regulatory functions
Option 3: Developmental functions
Option 4: Preventive functions
Answer (1)
20th Jan, 2024
Correct Answer: Protective functions
Solution :
Fraudulent and unfair trade practices are prohibited by SEBI, which also oversees the operations of stock exchanges and intermediaries and controls the issuance of capital by corporations. Additionally, it controls insider trading and takeover bids. Hence, under preventive function, RBI controls inside trading, and takeover bids and imposes penalties for such practices.
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