The following is not a Development function of SEBI:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → To provide a trading platform for equities of small and medium enterprises
Option (1) Training of intermediaries of the securities market — A development function of SEBI (Incorrect). Brokers and other intermediaries are trained so that the market works better.
Option (2) To provide a trading platform for equities of small and medium enterprises — Not a development function of SEBI (Correct). SEBI is the regulator; it does not run a place where shares are traded. Providing a trading platform for small and medium enterprises is an objective of the Bombay Stock Exchange (BSE).
Option (3) Conducting research and publishing information useful to all market participants — A development function of SEBI (Incorrect). Research and information help investors, companies and brokers take better decisions.
Option (4) Undertaking measures to develop the capital markets by adapting a flexible approach — A development function of SEBI (Incorrect). SEBI changes its methods as the market grows, so that the capital market can develop.
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): “Development Functions 1. Training of intermediaries of the securities market. “BSE (BOMBAY STOCK EXCHANGE LTD.) … (b) To provide a trading platform for equities of small and medium enterprises.” |