Question : Statement 1: SEBI's protective functions aim to safeguard the interests of investors.
Statement 2: SEBI's protective functions focus solely on promoting company profitability.
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, but statement 2 is false.
Solution : The correct answer is (b) Statement 1 is true, but statement 2 is false.
Statement 1 is true. One of SEBI's main objectives is to protect the interests of investors by ensuring fair practices, market integrity, and transparency in transactions. They work to maintain a secure environment for investors.
Statement 2 is false. SEBI's protective functions are primarily focused on safeguarding the interests of investors and maintaining the integrity of the market. While a stable and transparent market can indirectly contribute to the profitability of companies, SEBI's primary concern is investor protection and market fairness rather than directly promoting company profitability.
