Question 4:State any three objectives of the Securities Exchange Board of India.
The correct answer is – The Securities Exchange Board of India (SEBI) is the regulatory body for the securities market in India. The primary objectives of SEBI are as follows:
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Investor Protection: One of the primary objectives of SEBI is to protect the interests of investors in the securities market. SEBI seeks to ensure that investors are provided with accurate and timely information about the companies whose securities are traded on the exchanges. It also ensures that market participants comply with the regulations and laws aimed at protecting investors.
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Promoting Fair and Transparent Market: SEBI aims to promote a fair and transparent securities market. It seeks to prevent fraudulent and unfair trade practices, manipulation of prices and insider trading, which can negatively impact investor confidence in the market. SEBI also strives to ensure that there is a level playing field for all market participants.
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Development and Regulation of Securities Market: SEBI’s objective is to develop and regulate the securities market in India. It aims to ensure that the market operates efficiently, transparently, and with integrity. SEBI lays down rules and regulations for the functioning of the stock exchanges, intermediaries such as brokers, and other market participants. It also promotes the growth and development of the securities market by introducing new financial products, encouraging innovation and attracting more investors to the market.
