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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): Government of India decided to setup a separate regulatory body known as Securities and Exchange Board of India.
Reason (R): SEBI was set up to prevent trading malpractices and achieve a balance between self regulation by the securities industry and its statutory regulation.
  • 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 'A'. Can you explain this answer?
Verified Answer
Direction: In the question given below are two statements labelled at...
Many malpractices started taking place such as rigging of prices, non-adherence of provisions of the Companies Act, violation of rules and regulations of stock exchanges etc. Due to these malpractices, people started losing confidence in the stock market. The government felt a sudden need to set up an authority to regulate the working and reduce these malpractices. As a result, the Government came up with the establishment of SEBI.
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Direction: In the question given below are two statements labelled at...
Assertion (A): Government of India decided to setup a separate regulatory body known as Securities and Exchange Board of India.
Reason (R): SEBI was set up to prevent trading malpractices and achieve a balance between self regulation by the securities industry and its statutory regulation.

Explanation:
The given assertion states that the Government of India decided to set up a separate regulatory body known as Securities and Exchange Board of India (SEBI). This assertion is true. SEBI was established on April 12, 1992, as a regulatory authority to protect the interests of investors in securities and to promote the development of the securities market in India.

The reason given for the assertion is that SEBI was set up to prevent trading malpractices and achieve a balance between self-regulation by the securities industry and its statutory regulation. This reason is also true and provides an accurate explanation for the establishment of SEBI.

SEBI plays a crucial role in regulating the securities market in India. It aims to protect the interests of investors by ensuring fair practices, promoting transparency, and maintaining market integrity. SEBI acts as a watchdog for the securities market and ensures that market participants comply with the regulations and guidelines set by the board.

SEBI's primary objective is to prevent trading malpractices. It does so by implementing various regulations, such as insider trading regulations, prohibition of fraudulent and unfair trade practices, and guidelines for the functioning of intermediaries in the securities market.

Additionally, SEBI aims to achieve a balance between self-regulation by the securities industry and its statutory regulation. This means that while SEBI sets regulations and guidelines for market participants, it also encourages self-regulation by industry players. SEBI works closely with various market intermediaries, such as stock exchanges, brokers, and mutual funds, to ensure compliance with regulations and foster a healthy and vibrant securities market.

In conclusion, both the assertion and the reason are true, and the reason provides a correct explanation for the establishment of SEBI.
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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): Government of India decided to setup a separate regulatory body known as Securities and Exchange Board of India.Reason (R): SEBI was set up to prevent trading malpractices and achieve a balance between self regulation by the securities industry and its statutory regulation.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 'A'. 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): Government of India decided to setup a separate regulatory body known as Securities and Exchange Board of India.Reason (R): SEBI was set up to prevent trading malpractices and achieve a balance between self regulation by the securities industry and its statutory regulation.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 'A'. 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): Government of India decided to setup a separate regulatory body known as Securities and Exchange Board of India.Reason (R): SEBI was set up to prevent trading malpractices and achieve a balance between self regulation by the securities industry and its statutory regulation.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 'A'. 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): Government of India decided to setup a separate regulatory body known as Securities and Exchange Board of India.Reason (R): SEBI was set up to prevent trading malpractices and achieve a balance between self regulation by the securities industry and its statutory regulation.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 'A'. Can you explain this answer?.
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