SEBI aims to offer the market intermediaries a competitive, professionalised and expanding market with adequate and efficient infrastructure. What is this expected to lead to?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → The intermediaries are able to render better service to the investors and issuers
Option (1) The intermediaries are able to raise the finances they need in an easy, fair and efficient manner — Incorrect. Raising finances easily is SEBI’s aim for the issuers.
Option (2) The intermediaries are able to render better service to the investors and issuers — Correct. Intermediaries such as brokers link investors and issuers. A competitive and growing market with good infrastructure helps them render better service to both.
Option (3) The intermediaries get protection of their rights through adequate, accurate and authentic information — Incorrect. Protection through information is SEBI’s aim for the investors.
Option (4) The intermediaries are able to receive training for work in the securities market — Incorrect. Training of intermediaries is a development function of SEBI. It is a separate task.
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. |