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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


Team Careers360 11th Jan, 2024
Answer (1)
Team Careers360 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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