CA Foundation Exam > CA Foundation Questions > SEBI is a ________.a)Statutory Bodyb)Advisory...
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SEBI is a ________.
- a)Statutory Body
- b)Advisory Body
- c)Constitution Body
- d)None of the above
Correct answer is 'A'. Can you explain this answer?
Most Upvoted Answer
SEBI is a ________.a)Statutory Bodyb)Advisory Bodyc)Constitution Bodyd...
SEBI is a Statutory Body
SEBI, which stands for the Securities and Exchange Board of India, is a statutory body established under the Securities and Exchange Board of India Act, 1992. It is the regulatory authority for the securities market in India. Let's understand why SEBI is considered a statutory body.
Definition of Statutory Body
A statutory body is an organization or agency set up by an act of the legislature or parliament. It derives its powers, functions, and authority from the law that establishes it. The primary purpose of a statutory body is to regulate and oversee specific activities, sectors, or industries in the public interest.
Establishment of SEBI
SEBI was established on April 12, 1992, by the Government of India through an act of Parliament called the Securities and Exchange Board of India Act, 1992. This act was enacted to provide for the establishment of a statutory regulatory body to protect the interests of investors in securities and promote the development of, and regulate, the securities market in India.
Powers and Functions of SEBI
SEBI has been vested with extensive powers and functions to regulate and develop the securities market in India. Some of the key powers and functions of SEBI include:
1. Regulation and supervision of stock exchanges, depositories, and other intermediaries in the securities market.
2. Registration and regulation of market participants such as brokers, sub-brokers, portfolio managers, and investment advisors.
3. Protecting the interests of investors and ensuring fair practices in the securities market.
4. Prohibition of fraudulent and unfair trade practices in securities transactions.
5. Promotion and regulation of self-regulatory organizations in the securities market.
6. Conducting inspections, investigations, and audits of entities regulated by SEBI.
7. Imposing penalties and taking enforcement actions against defaulters and violators of securities laws.
Conclusion
SEBI is a statutory body established under the Securities and Exchange Board of India Act, 1992. It has been given the authority to regulate and develop the securities market in India and protect the interests of investors. As a statutory body, SEBI derives its powers, functions, and authority from the law that establishes it.
SEBI, which stands for the Securities and Exchange Board of India, is a statutory body established under the Securities and Exchange Board of India Act, 1992. It is the regulatory authority for the securities market in India. Let's understand why SEBI is considered a statutory body.
Definition of Statutory Body
A statutory body is an organization or agency set up by an act of the legislature or parliament. It derives its powers, functions, and authority from the law that establishes it. The primary purpose of a statutory body is to regulate and oversee specific activities, sectors, or industries in the public interest.
Establishment of SEBI
SEBI was established on April 12, 1992, by the Government of India through an act of Parliament called the Securities and Exchange Board of India Act, 1992. This act was enacted to provide for the establishment of a statutory regulatory body to protect the interests of investors in securities and promote the development of, and regulate, the securities market in India.
Powers and Functions of SEBI
SEBI has been vested with extensive powers and functions to regulate and develop the securities market in India. Some of the key powers and functions of SEBI include:
1. Regulation and supervision of stock exchanges, depositories, and other intermediaries in the securities market.
2. Registration and regulation of market participants such as brokers, sub-brokers, portfolio managers, and investment advisors.
3. Protecting the interests of investors and ensuring fair practices in the securities market.
4. Prohibition of fraudulent and unfair trade practices in securities transactions.
5. Promotion and regulation of self-regulatory organizations in the securities market.
6. Conducting inspections, investigations, and audits of entities regulated by SEBI.
7. Imposing penalties and taking enforcement actions against defaulters and violators of securities laws.
Conclusion
SEBI is a statutory body established under the Securities and Exchange Board of India Act, 1992. It has been given the authority to regulate and develop the securities market in India and protect the interests of investors. As a statutory body, SEBI derives its powers, functions, and authority from the law that establishes it.
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SEBI is a ________.a)Statutory Bodyb)Advisory Bodyc)Constitution Bodyd...
Initially SEBI was a non statutory body without any statutory power. However, in 1992, the SEBI was given additional statutory power by the Government of India through an amendment to the Securities and Exchange Board of India Act, 1992.
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SEBI is a ________.a)Statutory Bodyb)Advisory Bodyc)Constitution Bodyd)None of the aboveCorrect answer is 'A'. Can you explain this answer?
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