Three of the following are development functions of SEBI. Which one is the odd one out?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Promotion of fair practices and code of conduct in the securities market
Option (1) Training of intermediaries of the securities market — Development function. It builds the skills of intermediaries and helps the market grow.
Option (2) Conducting research and publishing information useful to all market participants — Development function. The information it gives is useful to everyone in the market.
Option (3) Undertaking measures to strengthen the capital markets by adapting a flexible approach — Development function. Building up the capital markets through a flexible approach is the third development function of SEBI.
Option (4) Promotion of fair practices and code of conduct in the securities market — Not a development function. It is the last protective function of SEBI. Fair practices and a code of conduct guard investors against unfair dealing.
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. |