Question

Explain in brief the secondary objectives of SEBI.

Hint:

SEBI ensures that the market remains transparent and fair, which helps build trust with investors.

Answer 1

The Securities and Exchange Board of India (SEBI) was established to regulate the securities market and protect the interests of investors. While the primary objectives of SEBI focus on regulating the capital markets and ensuring investor protection, it also has secondary objectives aimed at fostering the development and improving the efficiency of the market. Secondary objectives of SEBI: 1. {Promote fair practices in the securities market:} SEBI aims to promote ethical conduct among market participants and ensure that all securities transactions are carried out in a fair and transparent manner. 2. {Development of the securities market:} SEBI is focused on developing the capital markets to make them more accessible, efficient, and attractive to investors. 3. {Protection of investors:} SEBI aims to protect the rights of investors by educating them, ensuring they are not exploited, and providing a safe market environment for investment. 4. {Prevent insider trading:} SEBI works to eliminate insider trading and other malpractices in the securities market to ensure fair trading conditions. Conclusion: SEBI's secondary objectives help in building trust, promoting market development, and ensuring the safety and security of investors.
Final Answer: \[ \boxed{\text{The secondary objectives of SEBI include promoting fair practices, developing the securities market, protecting investors, and preventing insider trading.}} \]