Match list I with list II.
| LIST 1 | LIST II |
| A. Regulatory Function of SEBI | I. Levying fee or other charges |
| B. Development Function of SEBI | II. Training of intermediaries |
| C. Protective Function of SEBI | III. Controlling insider trading |
| D. Objective of SEBI | IV. Regulate stock exchanges |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A-I, B-II, C-III, D-IV
A. Regulatory Function of SEBI — this matches I. Levying fee or other charges. “Levying fee or other charges for carrying out the purposes of the Act” is one of the regulatory functions.
B. Development Function of SEBI — this matches II. Training of intermediaries. Training brokers and other intermediaries helps the market grow, so it is a development function.
C. Protective Function of SEBI — this matches III. Controlling insider trading. Insider trading means trading by people who have secret company information. Controlling it protects ordinary investors.
D. Objective of SEBI — this matches IV. Regulate stock exchanges. The first objective of SEBI is to regulate stock exchanges and the securities industry so that they work in an orderly way.
Note: Although the chapter ‘Financial Markets’ was dropped from the NCERT textbooks during rationalisation, it has stayed in the NTA syllabus every year since 2022, except for 2025, and it is part of the syllabus again from 2026. This question is therefore based on the pre-rationalised NCERT, an extract from which is given below. NCERT (Pre-rationalised Edition): “Regulatory Functions … 6. Levying fee or other charges for carrying out the purposes of the Act.” “Development Functions 1. Training of intermediaries of the securities market.” “Protective Functions … 2. Controlling insider trading and imposing penalties for such practices.” “Objectives of SEBI … 1. To regulate stock exchanges and the securities industry to promote their orderly functioning.” |