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, and statement 2 is false.
Statement 1 is true. SEBI's protective functions include measures to ensure fair and transparent trading practices in the securities market. These functions aim to protect the interests of investors and maintain market integrity.
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 indirectly contributes to the overall health of companies, SEBI's primary objective is investor protection and market fairness.
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