Question:
State any three protective functions of 'Securities and Exchange Board of India'.
State any three protective functions of 'Securities and Exchange Board of India'.
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SEBI's protective functions focus on three Is: Insider trading prohibition, Investor protection, and Illegal practice prevention.
Updated On: Jun 21, 2025
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Solution and Explanation
1. Prohibiting Insider Trading: - SEBI (Prohibition of Insider Trading) Regulations, 2015 - Example: Action against Reliance Industries in 2017 (₹25 crore penalty) - Impact: Maintains market integrity
2. Preventing Fraudulent Practices: - Detects price manipulation - Regulates takeover bids - Case: Sahara refund order (₹24,000 crore to investors)
3. Investor Education: - SCORES portal for grievance redressal - Investor awareness programs - Mandatory risk disclosures by brokers - Monitoring credit rating agencies - Regulating depositories - Overseeing mutual funds
2. Preventing Fraudulent Practices: - Detects price manipulation - Regulates takeover bids - Case: Sahara refund order (₹24,000 crore to investors)
3. Investor Education: - SCORES portal for grievance redressal - Investor awareness programs - Mandatory risk disclosures by brokers - Monitoring credit rating agencies - Regulating depositories - Overseeing mutual funds
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