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Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): Controlling insider trading and imposing penalties for such practices is a protective function of SEBI.
Reason (R): Registration of collective investment schemes and Mutual Funds is a development function of SEBI.
- a)Both A and R are true and R is the correct explanation of A
- b)Both A and R are true, but R is not the correct explanation of A
- c)A is true, but R is false
- d)A is false, but R is true
Correct answer is option 'C'. Can you explain this answer?
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Direction: In the question given below are two statements labelled at...
Registration of collective investment schemes and Mutual Funds is a regulatory function of SEBI. Regulatory functions involve establishment of rules and regulations for the financial intermediaries along with corporates that helps in efficient management of the market.
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Direction: In the question given below are two statements labelled at...
Explanation:
Assertion (A) and Reason (R) are related to the functions performed by SEBI (Securities and Exchange Board of India).
Assertion (A) Explanation:
- Assertion (A) states that controlling insider trading and imposing penalties for such practices is a protective function of SEBI.
- This statement is true because SEBI is responsible for ensuring fair practices in the securities market and protecting the interests of investors. Insider trading, which involves buying or selling securities based on non-public, material information, is illegal and can harm market integrity. SEBI's role in controlling insider trading helps maintain a level playing field for all market participants.
Reason (R) Explanation:
- Reason (R) states that registration of collective investment schemes and Mutual Funds is a development function of SEBI.
- This statement is false because the registration of collective investment schemes and Mutual Funds is actually a regulatory function of SEBI, not a development function. SEBI regulates the issuance and trading of securities to protect investors and promote market transparency. By registering collective investment schemes and Mutual Funds, SEBI ensures that these entities comply with regulatory requirements and safeguard investor funds.
Therefore, the correct answer is option 'C' - A is true, but R is false.
Assertion (A) and Reason (R) are related to the functions performed by SEBI (Securities and Exchange Board of India).
Assertion (A) Explanation:
- Assertion (A) states that controlling insider trading and imposing penalties for such practices is a protective function of SEBI.
- This statement is true because SEBI is responsible for ensuring fair practices in the securities market and protecting the interests of investors. Insider trading, which involves buying or selling securities based on non-public, material information, is illegal and can harm market integrity. SEBI's role in controlling insider trading helps maintain a level playing field for all market participants.
Reason (R) Explanation:
- Reason (R) states that registration of collective investment schemes and Mutual Funds is a development function of SEBI.
- This statement is false because the registration of collective investment schemes and Mutual Funds is actually a regulatory function of SEBI, not a development function. SEBI regulates the issuance and trading of securities to protect investors and promote market transparency. By registering collective investment schemes and Mutual Funds, SEBI ensures that these entities comply with regulatory requirements and safeguard investor funds.
Therefore, the correct answer is option 'C' - A is true, but R is false.
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Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Controlling insider trading and imposing penalties for such practices is a protective function of SEBI.Reason (R): Registration of collective investment schemes and Mutual Funds is a development function of SEBI.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer?
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Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Controlling insider trading and imposing penalties for such practices is a protective function of SEBI.Reason (R): Registration of collective investment schemes and Mutual Funds is a development function of SEBI.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Controlling insider trading and imposing penalties for such practices is a protective function of SEBI.Reason (R): Registration of collective investment schemes and Mutual Funds is a development function of SEBI.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Controlling insider trading and imposing penalties for such practices is a protective function of SEBI.Reason (R): Registration of collective investment schemes and Mutual Funds is a development function of SEBI.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer?.
Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Controlling insider trading and imposing penalties for such practices is a protective function of SEBI.Reason (R): Registration of collective investment schemes and Mutual Funds is a development function of SEBI.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Controlling insider trading and imposing penalties for such practices is a protective function of SEBI.Reason (R): Registration of collective investment schemes and Mutual Funds is a development function of SEBI.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Controlling insider trading and imposing penalties for such practices is a protective function of SEBI.Reason (R): Registration of collective investment schemes and Mutual Funds is a development function of SEBI.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer?.
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