Given below are two statements:
Assertion (A): SEBI has the status of a statutory body.
Reason (R): There has been a considerable expansion in the range and scope of SEBI’s activities.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Both (A) and (R) are true but (R) is not the correct explanation of (A).
Assertion (A): SEBI has the status of a statutory body. — True. SEBI got statutory status on 30 January 1992 through an ordinance. The ordinance was later replaced by the SEBI Act, 1992.
Reason (R): There has been a considerable expansion in the range and scope of SEBI’s activities. — True. SEBI’s work has grown a great deal. So it has been restructured into five operational departments.
Why R does not explain A?
R gives a result of SEBI’s statutory status, not its cause. Because SEBI is a statutory body, the range and scope of its work expanded. A is true because the Government gave SEBI statutory status through an ordinance, which an Act of Parliament later replaced.
NCERT (Pre-rationalised Edition): “SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI) The Securities and Exchange Board of India was established by the Government of India on 12 April 1988 as an interim administrative body to promote orderly and healthy growth of securities market and for investor protection. It was to function under the overall administrative control of the Ministry of Finance of the Government of India. The SEBI was given a statutory status on 30 January 1992 through an ordinance. The ordinance was later replaced by an Act of Parliament known as the Securities and Exchange Board of India Act, 1992. …” “The Organisation Structure of SEBI As SEBI is a statutory body there has been a considerable expansion in the range and scope of its activities. Each of the activities of the SEBI now demands more careful, closer, co-ordinated and intensive attention to enable it to attain its objectives. Accordingly, SEBI has been restructured and rationalised in tune with its expanded scope. …” |