Identify, which of the following is not an objective of SEBI?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → To regulate issue of shares in Foreign market
Option (1) To regulate issue of shares in Foreign market — Not an objective of SEBI (Correct). SEBI’s overall objective is to protect the interests of investors and to promote the development of, and regulate, the securities market of India. Regulating the issue of shares in a foreign market is not one of its objectives.
Option (2) To regulate stock exchanges and their orderly functioning — An objective of SEBI (Incorrect). This is the first objective of SEBI.
Option (3) To regulate and develop a code of conduct for stock brokers — An objective of SEBI (Incorrect). This is the fourth objective of SEBI. It talks about a code of conduct for intermediaries like brokers.
Option (4) To protect the rights and interests of investors — An objective of SEBI (Incorrect). This is the second objective of SEBI.
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):
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