Keeping in mind the emerging nature of the securities market in India, SEBI was entrusted with the twin task of __________ of the securities market.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → regulation and development
Option (1) regulation and protection — Incorrect. Regulation is part of the twin task, but protection is not. Protection is a third group of functions, added to the twin task.
Option (2) protection and development — Incorrect. Development is part of the twin task, but protection is not; it is an extra group.
Option (3) registration and inspection — Incorrect. These are only items under the regulatory functions, not the twin task itself.
Option (4) regulation and development — Correct. SEBI was formed when the securities market in India was still emerging, that is, young and growing. So it was given a twin task: to regulate the market and to develop it.
NCERT (Pre-rationalised Edition): “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. …” “Functions of SEBI Keeping in mind the emerging nature of the securities market in India, SEBI was entrusted with the twin task of both regulation and development of the securities market. It also has certain protective functions. …” |