Given below are two statements:
Statement I: SEBI was first set up as an interim administrative body to promote orderly and healthy growth of the securities market.
Statement II: SEBI was given statutory status through a notification of the Ministry of Finance.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Statement I is correct but Statement II is incorrect.
Statement I: SEBI was first set up as an interim administrative body to promote orderly and healthy growth of the securities market. — Correct. The Government set up SEBI on 12 April 1988 as an interim administrative body, for orderly and healthy growth of the securities market and investor protection.
Statement II: SEBI was given statutory status through a notification of the Ministry of Finance. — Incorrect. Statutory status came on 30 January 1992 through an ordinance, later replaced by an Act of Parliament. The Ministry of Finance only had administrative control over SEBI.
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. …” |