Question : Statement 1: SEBI's protective functions ensure fair trading practices in the market.
Statement 2: SEBI's protective functions are aimed at promoting the profitability of companies.
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 primary objectives is to protect the interests of investors and ensure fair and transparent trading practices in the securities market. SEBI takes measures to prevent fraudulent and unfair trade practices.
Statement 2 is false. SEBI's protective functions are not primarily aimed at promoting the profitability of companies. Instead, its protective functions are focused on safeguarding investors and maintaining the integrity of the market. SEBI's role is regulatory and aimed at ensuring fair and transparent operations in the market, rather than directly promoting the profitability of companies.
