Three of the following are objectives of SEBI. Which one is the odd one out?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → To conduct research and publish information useful to market participants
Option (1) To conduct research and publish information useful to market participants — Not an objective. Conducting research and publishing information is a development function of SEBI. It is a task SEBI performs to develop the market.
Option (2) To guide and educate investors, particularly individual investors — An objective of SEBI. This is part of the second objective, on protecting investors.
Option (3) To prevent trading malpractices in the securities market — An objective of SEBI. This is part of the third objective.
Option (4) To regulate and develop a code of conduct and fair practices by intermediaries — An objective of SEBI. This is the fourth objective, which aims to make intermediaries competitive and professional.
The objectives say what SEBI aims to achieve; the functions are the tasks it performs to achieve them.
NCERT (Pre-rationalised Edition): “Securities and Exchange Board of India (SEBI) … 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. This may be elaborated as follows: “…Development Functions |