Match List-I with List-II:List-IList-II(A)Basic purpose of SEBI(I)Mal…

Match List-I with List-II:

List-I		List-II
(A)	Basic purpose of SEBI	(I)	Malpractices that eroded investor confidence and multiplied investor grievances
(B)	Overall objective of SEBI	(II)	A market place to raise finances in an easy, fair and efficient manner
(C)	Reason for setting up SEBI	(III)	Efficient mobilisation and allocation of resources through the securities markets
(D)	Role of SEBI for the issuers	(IV)	Protecting the interests of investors and promoting the development of, and regulating, the securities market

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

List-I	List-II	Reason
(A) Basic purpose of SEBI	(III) Efficient mobilisation and allocation of resources through the securities markets	SEBI aims at an environment in which funds are gathered and put to good use.
(B) Overall objective of SEBI	(IV) Protecting the interests of investors and promoting the development of, and regulating, the securities market	This broad objective joins investor protection with growth and regulation of the market.
(C) Reason for setting up SEBI	(I) Malpractices that eroded investor confidence and multiplied investor grievances	The 1980s saw many malpractices, and the existing law could not deal with them.
(D) Role of SEBI for the issuers	(II) A market place to raise finances in an easy, fair and efficient manner	Issuers are companies that need finances from the market.

NCERT (Pre-rationalised Edition): “Reasons for the Establishment of SEBI The capital market has witnessed a tremendous growth during 1980’s, characterised particularly by the increasing participation of the public. This ever expanding investors population and market capitalisation led to a variety of malpractices on the part of companies, brokers, merchant bankers, investment consultants and others involved in the securities market. The glaring examples of these malpractices include existence of self – styled merchant bankers unofficial private placements, rigging of prices, unofficial premium on new issues, non-adherence of provisions of the Companies Act, violation of rules and regulations of stock exchanges and listing requirements, delay in delivery of shares etc. These malpractices and unfair trading practices have eroded investor confidence and multiplied investor grievances. …”

“…Purpose and Role of SEBI The basic purpose of SEBI is to create an environment to facilitate efficient mobilisation and allocation of resources through the securities markets. It also aims to stimulate competition and encourage innovation. This environment includes rules and regulations, institutions and their interrelationships, instruments, practices, infrastructure and policy framework.
This environment aims at meeting the needs of the three groups which basically constitute the market, viz, the issuers of securities (Companies), the investors and the market intermediaries.
• To the issuers, it aims to provide a market place in which they can confidently look forward to raising finances they need in an easy, fair and efficient manner.
• To the investors, it should provide protection of their rights and interests through adequate, accurate and authentic information and disclosure of information on a continuous basis.
• To the intermediaries, it should offer a competitive, professionalised and expanding market with adequate and efficient infrastructure so that they are able to render better service to the investors and issuers. …”

“… Objectives of SEBI The overall objective of SEBI is to protect the interests of investors and to promote the development of, and regulate the securities market. …”