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Discuss the powers and functions of SEBI. What are the major issues faced by the regulatory body for securities and commodity markets in India? (150 words)?
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Discuss the powers and functions of SEBI. What are the major issues fa...
Powers and Functions of SEBI
- SEBI, or the Securities and Exchange Board of India, is the regulatory body tasked with overseeing the securities and commodity markets in India.
- Some of the key powers and functions of SEBI include:
- Regulating the securities market to protect the interests of investors.
- Promoting the development of, and regulating, the securities market.
- Regulating the business in stock exchanges and any other securities markets.
- Registering and regulating the working of intermediaries like stockbrokers, sub-brokers, etc.

Major Issues Faced by SEBI
- Despite its mandate and powers, SEBI faces several challenges in regulating the securities and commodity markets in India. Some of the major issues include:
- Insider trading and market manipulation leading to unfair trading practices.
- Lack of investor awareness and education, leading to uninformed investment decisions.
- Enforcement of regulations and monitoring of market activities to prevent fraud and malpractices.
- Rapidly evolving financial markets and technological advancements, requiring constant adaptation of regulatory framework.
In conclusion, SEBI plays a crucial role in ensuring the integrity and stability of the securities and commodity markets in India. However, it continues to face challenges in effectively regulating these markets and protecting the interests of investors. Addressing these issues will be crucial for maintaining investor confidence and fostering a healthy investment environment in the country.
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Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greeces sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.Q.The Indian financial markets are affected by global changes mainly due to the

Directions for the following 4 (four) items: Read the following passage and answer the four items that follow. YOUR answers to these items should be based on the passage only.Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greeces sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.Q.According to the passage, the financial markets in the emerging market economies including India had the adverse impact in recent years due to1. weak global economic prospects.2. uncertainties in the international financial markets.3. sovereign risk concerns in the Euro area.4. bad monsoons and the resultant crop loss.

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Discuss the powers and functions of SEBI. What are the major issues faced by the regulatory body for securities and commodity markets in India? (150 words)?
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