Given below are two statements:
Statement I: SEBI was to function under the overall administrative control of the Reserve Bank of India.
Statement II: The ordinance that gave SEBI statutory status was later replaced by an Act of Parliament.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Statement I is incorrect but Statement II is correct.
Statement I: SEBI was to function under the overall administrative control of the Reserve Bank of India. — Incorrect. SEBI was to work under the administrative control of the Ministry of Finance of the Government of India.
Statement II: The ordinance that gave SEBI statutory status was later replaced by an Act of Parliament. — Correct. SEBI got statutory status on 30 January 1992 through an ordinance. The ordinance was later replaced by the Securities and Exchange Board of India Act, 1992.
NCERT (Pre-rationalised Edition): “SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI) The Securities and Exchange Board of India was established by the Government of India on 12 April 1988 as an interim administrative body to promote orderly and healthy growth of securities market and for investor protection. It was to function under the overall administrative control of the Ministry of Finance of the Government of India. The SEBI was given a statutory status on 30 January 1992 through an ordinance. The ordinance was later replaced by an Act of Parliament known as the Securities and Exchange Board of India Act, 1992. …” |