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SEBI - Objectives & Functions, Financial Markets Part - 8, Prince Academy, 12th Business Studies Video Lecture - Commerce

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FAQs on SEBI - Objectives & Functions, Financial Markets Part - 8, Prince Academy, 12th Business Studies Video Lecture - Commerce

1. What are the objectives of SEBI?
Ans. The Securities and Exchange Board of India (SEBI) has the following objectives: - To protect the interests of investors in securities - To promote the development of the securities market - To regulate the securities market and ensure its orderly functioning - To prevent fraudulent and unfair trade practices in securities - To promote investor education and awareness
2. What are the functions of SEBI?
Ans. SEBI performs several functions to achieve its objectives, which include: - Regulating and supervising the activities of intermediaries, such as brokers, merchant bankers, and mutual funds. - Registering and regulating the working of stockbrokers, sub-brokers, share transfer agents, etc. - Prohibiting insider trading and fraudulent practices in the securities market. - Promoting fair practices and code of conduct for all participants in the securities market. - Regulating the takeover of companies and protection of the rights and interests of minority shareholders.
3. How does SEBI protect the interests of investors?
Ans. SEBI protects the interests of investors through various measures, including: - Promoting transparency and disclosure of information by listed companies. - Regulating the activities of intermediaries and ensuring their compliance with rules and regulations. - Prohibiting fraudulent and unfair trade practices, such as insider trading and price manipulation. - Establishing a grievance redressal mechanism for addressing investor complaints and disputes. - Educating and creating awareness among investors about their rights and responsibilities.
4. What is the role of SEBI in promoting the development of the securities market?
Ans. SEBI plays a crucial role in promoting the development of the securities market by: - Introducing reforms and regulations to enhance the efficiency, transparency, and integrity of the market. - Facilitating the entry of new participants, such as foreign institutional investors, into the market. - Encouraging the use of technology for trading, settlement, and other market operations. - Promoting investor education and awareness to increase participation in the market. - Monitoring and supervising the functioning of stock exchanges and other market intermediaries.
5. How does SEBI regulate the securities market?
Ans. SEBI regulates the securities market through various means, including: - Formulating rules, regulations, and guidelines for the functioning of market intermediaries and participants. - Conducting inspections, investigations, and audits to ensure compliance with the regulatory framework. - Imposing penalties, fines, and other disciplinary actions on those found violating the rules and regulations. - Monitoring and supervising the activities of stock exchanges, depositories, and other infrastructure institutions. - Collaborating with other regulatory bodies and government agencies to maintain the integrity of the securities market.
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