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. The Securities and Exchange Board of India (SEBI) has a significant role in protecting the interests of investors in the securities market. This includes measures to ensure fair practices, transparency, and adequate disclosures, all of which are intended to safeguard investors.
Statement 2 is false. SEBI's protective functions are primarily aimed at safeguarding the interests of investors and ensuring the integrity and stability of the securities market. While a stable and well-regulated market is beneficial for companies and can indirectly contribute to their profitability, SEBI's main objective is not to focus solely on promoting company profitability.
