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Home Questions 3BXUJ7362Y
Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Assertion: Spreading of equity cult is an important function of SEBI.

Reasoning: The stock exchange can play a vital role in ensuring wider share ownership by regulating new issues, better trading practices and taking effective steps in educating the public about investments..

Options:

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

Assertion (A) is true but Reasoning (R) is not correct.

Assertion (A) is not true but Reasoning (R) is correct.

Correct Answer:

Assertion (A) is not true but Reasoning (R) is correct.

Explanation:

The correct answer is Option 4: Assertion (A) is not true but Reasoning (R) is correct.

Assertion: Spreading of equity cult is an important function of SEBI. This is false. Spreading of equity cult is an important function of stock exchanges and NOT SEBI. The stock exchange can play a vital role in ensuring wider share ownership by regulating new issues, better trading practices and taking effective steps in educating the public about investments.

Reasoning: The stock exchange can play a vital role in ensuring wider share ownership by regulating new issues, better trading practices and taking effective steps in educating the public about investments.This is true. 

CUET Questions