Given below are two statements:
Statement I: To the issuers of securities, SEBI aims to provide a market place in which they can confidently raise the finances they need in an easy, fair and efficient manner.
Statement II: To the investors, SEBI aims to offer a competitive, professionalised and expanding market with adequate and efficient infrastructure.
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: To the issuers of securities, SEBI aims to provide a market place in which they can confidently raise the finances they need in an easy, fair and efficient manner. — Correct. Issuers are the companies that sell securities. SEBI wants them to raise funds easily, fairly and efficiently.
Statement II: To the investors, SEBI aims to offer a competitive, professionalised and expanding market with adequate and efficient infrastructure. — Incorrect. This market is what SEBI offers to the intermediaries, so that they serve investors and issuers better. For investors, SEBI aims at protection of their rights and interests through adequate, accurate and authentic information.
NCERT (Pre-rationalised Edition): “Purpose and Role of SEBI … 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. |