Match list I with list II
| LIST 1 |
LIST II |
| A. Training of Intermediaries | I. Functions of Financial Market |
| B. Providing liquidity to financial Assets | II. Functions of Stock Exchange |
| C. Safety of Transaction | III. Development function of SEBI |
| D. Protect the interest of investor | IV. Objective of SEBI |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is option 1- (A)-(III), (B)-(I), (C)-(II), (D)-(IV).
| LIST 1 |
LIST II |
| A. Training of Intermediaries | III. Development function of SEBI |
| B. Providing liquidity to financial Assets | I. Functions of Financial Market |
| C. Safety of Transaction | II. Functions of Stock Exchange |
| D. Protect the interest of investor | IV. Objective of SEBI |
* Training of Intermediaries- Development Functions 1.Training of intermediaries of the securities market. 2.Conducting research and publishing information useful to all market participants. 3.Undertaking measures to develop the capital markets by adapting a flexible approach.
* Providing liquidity to financial Assets- Financial Market is a market for creation and exchange of financial assets. It helps in mobilisation and channelising the savings into most productive uses. Financial markets also helps in price discovery and provide liquidity to financial assets.
* Safety of Transaction- The basic function of a stock exchange is the creation of a continuous market where securities are bought and sold. It gives investors the chance to disinvest and reinvest. This provides both liquidity and easy marketability to already existing securities in the market.
* Protect the interest of investor- The overall objective of SEBI is to protect the interests of investors and to promote the development of, and regulate the securities market.
This may be elaborated as follows: 1.To regulate stock exchanges and the securities industry to promote their orderly functioning. 2.To protect the rights and interests of investors, particularly individual investors and to guide and educate them. 3.To prevent trading malpractices and achieve a balance between self regulation by the securities industry and its statutory regulation. 4.To regulate and develop a code of conduct and fair practices by intermediaries like brokers, merchant bankers etc., with a view to making them competitive and professional.