Question : Statement 1: SEBI's development functions focus on regulating credit rating agencies.
Statement 2: SEBI aims to promote the orderly growth and development of the securities market.
Option 1: Statement 1 is true, and statement 2 is true.
Option 2: Statement 1 is true, but statement 2 is false.
Option 3: Statement 1 is false, and statement 2 is true.
Option 4: Statement 1 is false, and statement 2 is false.
Correct Answer:
Statement 1 is true, and statement 2 is true.
Solution : The correct answer is (a) Statement 1 is true, but statement 2 is true.
Statement 1 is partly true. SEBI does regulate credit rating agencies as part of its broader functions, but its development functions encompass a wide range of activities aimed at developing and promoting the securities market. These functions are not exclusively focused on regulating credit rating agencies.
Statement 2 is true. One of SEBI's primary objectives is to promote the development and regulation of the securities market by ensuring a fair and transparent environment for both investors and issuers. This includes measures to maintain orderliness and efficiency in the market.
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