Match List-I with List-II
| List-I | List-II |
| (Functions/objectives of SEBI) | (Explanation) |
| (A) Training of intermediaries | (I) Objective of SEBI |
| (B) Controlling insider trading | (II) Regulatory function |
| (C) Guide and educate individual investors | (III) Development function |
| (D) Levying fee for carrying out the purposes of the act | (IV) Protective function |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
(A) Training of intermediaries — this matches (III) Development function. Training brokers and other intermediaries builds up the market itself, which is what development means.
(B) Controlling insider trading — this matches (IV) Protective function. Insider trading is dealing on secret company information. Stopping it protects ordinary investors from unfair losses.
(C) Guide and educate individual investors — this matches (I) Objective of SEBI. The book lists “to protect the rights and interests of investors, particularly individual investors and to guide and educate them” among SEBI’s objectives.
(D) Levying fee for carrying out the purposes of the act — this matches (II) Regulatory function. Charging fees is part of SEBI’s work as a regulator, along with registering brokers and inspecting exchanges.
Note 1: 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. Note 2: Guiding and educating investors can look like a protective function, because it helps investors protect themselves. But the pre-rationalised NCERT lists “to guide and educate them” only among SEBI’s objectives. Its protective functions are different: stopping fraudulent and unfair trade practices, controlling insider trading, undertaking steps for investor protection, and promoting fair practices. So (C) goes with (I), and that pairing is found only in Option (4).
NCERT (Pre-rationalised Edition): “Development Functions 1. Training of intermediaries of the securities market.” “Protective Functions 1. Prohibition of fraudulent and unfair trade practices like making misleading statements, manipulations, price rigging etc. “Objectives of SEBI … 2. To protect the rights and interests of investors, particularly individual investors and to guide and educate them.” “Regulatory Functions … 6. Levying fee or other charges for carrying out the purposes of the Act.” |
Note 3: The same/similar question has been asked in different years by NTA as per the details given below:
| 2026 | 2025 | 2024 | 2023 | 2022 |
| 24-05 S1 21-05 S1 | – | – | – | – |