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State Whether the Following Statements are True or False.
Q. In March, 1996 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India.
Q. In March, 1996 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India.
- a)True
- b)False
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
State Whether the Following Statements are True or False.Q.In March, 1...
In 1988, Sebi was constituted as the regulator of capital markets in India. Initially, Sebi was a non-statutory body without any statutory power. Following the passage of the Sebi Act by Parliament in 1992, it was given autonomous and statutory powers.
It regulates the operations of depositories, participants, custodians of securities, foreign portfolio investors, and credit rating agencies.
It regulates the operations of depositories, participants, custodians of securities, foreign portfolio investors, and credit rating agencies.
Most Upvoted Answer
State Whether the Following Statements are True or False.Q.In March, 1...
False
The statement that in March 1996, the Securities and Exchange Board of India (SEBI) was constituted as the regulator of capital markets in India under a resolution of the Government of India is false.
Explanation:
- The SEBI was actually constituted on April 12, 1988, under the SEBI Act of 1992. It was established as an independent regulatory body to regulate and develop the securities market in India.
- The SEBI Act was passed by the Parliament of India in 1992, and it received the President's assent on January 30, 1992. The act provided statutory powers to the SEBI to regulate the securities market in India and protect the interests of investors.
- The establishment of SEBI was a significant step towards the development and regulation of the capital market in India. It aimed to promote transparency, fairness, and efficiency in the securities market and provide a safe and secure investment environment for investors.
- Prior to the establishment of SEBI, the capital market in India was regulated by the Controller of Capital Issues (CCI) and the Capital Issues (Control) Act, 1947. However, these regulatory mechanisms were considered inadequate, and there was a need for an independent regulatory body to oversee the capital market.
- SEBI has been given various powers and functions under the SEBI Act, including the regulation of stock exchanges, registration and regulation of intermediaries, prohibition of fraudulent and unfair trade practices, promotion of investors' education and training, and regulation of substantial acquisition of shares and takeover of companies.
- Over the years, SEBI has played a crucial role in the development and regulation of the capital market in India. It has introduced various reforms and measures to enhance transparency, improve governance standards, and protect the interests of investors.
- In conclusion, the SEBI was constituted in 1988, not in March 1996, as stated in the given statement. It was established under the SEBI Act of 1992 to regulate and develop the securities market in India.
The statement that in March 1996, the Securities and Exchange Board of India (SEBI) was constituted as the regulator of capital markets in India under a resolution of the Government of India is false.
Explanation:
- The SEBI was actually constituted on April 12, 1988, under the SEBI Act of 1992. It was established as an independent regulatory body to regulate and develop the securities market in India.
- The SEBI Act was passed by the Parliament of India in 1992, and it received the President's assent on January 30, 1992. The act provided statutory powers to the SEBI to regulate the securities market in India and protect the interests of investors.
- The establishment of SEBI was a significant step towards the development and regulation of the capital market in India. It aimed to promote transparency, fairness, and efficiency in the securities market and provide a safe and secure investment environment for investors.
- Prior to the establishment of SEBI, the capital market in India was regulated by the Controller of Capital Issues (CCI) and the Capital Issues (Control) Act, 1947. However, these regulatory mechanisms were considered inadequate, and there was a need for an independent regulatory body to oversee the capital market.
- SEBI has been given various powers and functions under the SEBI Act, including the regulation of stock exchanges, registration and regulation of intermediaries, prohibition of fraudulent and unfair trade practices, promotion of investors' education and training, and regulation of substantial acquisition of shares and takeover of companies.
- Over the years, SEBI has played a crucial role in the development and regulation of the capital market in India. It has introduced various reforms and measures to enhance transparency, improve governance standards, and protect the interests of investors.
- In conclusion, the SEBI was constituted in 1988, not in March 1996, as stated in the given statement. It was established under the SEBI Act of 1992 to regulate and develop the securities market in India.
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