Business StudiesFinancial Markets

To the investors, SEBI should provide protection of their rights and…

To the investors, SEBI should provide protection of their rights and interests through adequate, accurate and authentic information and disclosure of information on a __________ basis.

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → continuous

Investors need full and true information about a company all the time, not only now and then. SEBI therefore aims at disclosure of information on a continuous basis, so that investors’ rights and interests are protected.

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.
• To the issuers, it aims to provide a market place in which they can confidently look forward to raising finances they need in an easy, fair and efficient manner.
• To the investors, it should provide protection of their rights and interests through adequate, accurate and authentic information and disclosure of information on a continuous basis.
• To the intermediaries, it should offer a competitive, professionalised and expanding market with adequate and efficient infrastructure so that they are able to render better service to the investors and issuers. …”