SEBI aims to give investors adequate, accurate and authentic information, and disclosure of information on a continuous basis. What is this meant to give the investors?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Protection of their rights and interests
Option (1) Protection of their rights and interests — Correct. Investors put their money into securities. Full and true information, given on a continuous basis, helps them judge their investment. In this way SEBI aims at protection of their rights and interests.
Option (2) A market place to raise finances in an easy, fair and efficient manner — Incorrect. This is SEBI’s aim for the issuers, the companies that raise funds.
Option (3) A competitive, professionalised and expanding market — Incorrect. This is SEBI’s aim for the intermediaries, such as brokers.
Option (4) Price discovery for the securities they hold — Incorrect. Price discovery is a function of financial markets. Prices are set by demand and supply of buyers and sellers.
NCERT (Pre-rationalised Edition): “Purpose and Role of SEBI … This environment aims at meeting the needs of the three groups which basically constitute the market, viz, the issuers of securities (Companies), the investors and the market intermediaries. |