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With reference to the the Securities and Exchange Board of India (SEBI), consider the following statements:
  1. It was established as a statutory body in 1988.
  2. It is the regulatory authority for the securities and capital markets in India.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
With reference to the the Securities and Exchange Board of India (SEBI...
Overview of SEBI
The Securities and Exchange Board of India (SEBI) plays a pivotal role in regulating the securities and capital markets in India.
Statement Analysis
- Statement 1: "It was established as a statutory body in 1988."
- This statement is partially correct. SEBI was initially established in 1988 as a non-statutory body. It was later given statutory status by the SEBI Act of 1992. Therefore, stating it was established as a statutory body in 1988 is incorrect.
- Statement 2: "It is the regulatory authority for the securities and capital markets in India."
- This statement is correct. Since its establishment, SEBI has been empowered to regulate the securities market and protect the interests of investors. Its functions include overseeing stock exchanges, mutual funds, and other financial entities.
Conclusion
Based on the analysis:
- Statement 1 is incorrect.
- Statement 2 is correct.
Thus, the correct answer is option 'B' (2 only).
Free Test
Community Answer
With reference to the the Securities and Exchange Board of India (SEBI...
Statement 1 is incorrect: It was established in 1988 and granted statutory powers through the SEBI Act of 1992.
Statement 2 is correct: SEBI is the regulatory authority for the securities and capital markets in India.
  • SEBI’s main objective is to protect investors' interests, promote and regulate the securities market, and ensure its orderly functioning.
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Question Description
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