Identify the objective of SEBI from the following.
A. To protect the rights and interests of investors
B. To regulate stock market and the securities industry to promote their orderly functions.
C. Registration of brokers.
D. To prevent trading malpractices and achieve a balance between self regulation by securities industry and its statutory regulation
E. Calling for information by undertaking inspection
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 4
The correct answer is option 4- A, B and D only.
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 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.