Financial Markets · Class 12 · CBSE · Commerce Business Studies

Which action best represents the regulatory function of the Securities and Exchange Board of India (SEBI)?

Practice question from Financial Markets (Class 12 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.

hard · MCQ · Q-30F21D

Which action best represents the regulatory function of the Securities and Exchange Board of India (SEBI)?

  1. A.Providing long-term loans directly to companies
  2. B.Fixing the market price of every listed security
  3. C.Prohibiting insider trading and regulating intermediaries in the securities marketCorrect answer
  4. D.Issuing currency notes for circulation

Solution

SEBI regulates the securities market, protects investors, and promotes its development. Prohibiting insider trading and supervising market intermediaries are important regulatory activities of SEBI.

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