With reference to the Securities and Exchange Board of India (SEBI), consider the following statements: 1. It aims at regulating the securities market and safeguarding the interests of investors. 2. SEBI is accountable to the Reserve Bank of India. 3. It has judicial power in regulating the securities market. 4. It was established on the recommendations of Rangarajan Committee. How many of the statements given above are correct? |ForumIAS

Q. With reference to the Securities and Exchange Board of India (SEBI), consider the following statements:
1.It aims at regulating the securities market and safeguarding the interests of investors.
2.SEBI is accountable to the Reserve Bank of India.
3.It has judicial power in regulating the securities market.
4.It was established on the recommendations of Rangarajan Committee.
How many of the statements given above are correct?

[A] Only one

[B] Only two

[C] Only three

[D] All four

Answer: A

Notes:

Explanation –

Statement 1 is correct. SEBI’s main objective is to regulate the securities market and safeguard the interests of investors. It aims to maintain the stability of the securities market, protect investors from fraudulent activities, and ensure the smooth functioning of the market.

Statements 2, 3 and 4 are incorrect. SEBI reports to the finance minister and is accountable to the Parliament through the finance minister. The finance minister can issue directives to SEBI on matters of policy, which SEBI is required to follow. SEBI has quasi-legislative powers in regulating the securities market, which means that it can make rules and regulations to implement the provisions of the Securities Contracts (Regulation) Act, 1956, and the Securities and Exchange Board of India Act, 1992. SEBI was established on the recommendations of the Narasimham Committee.

Source: Forum IAS

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