Question

State any three regulatory functions of the Securities and Exchange Board of India (SEBI).

Hint:

SEBI’s regulatory functions ensure that the securities market operates smoothly, maintaining investor confidence and market fairness.

Answer 1

Regulatory Functions of SEBI:
1. Registration of Market Participants: SEBI registers brokers, sub-brokers, mutual funds, and other players in the securities market to ensure compliance with regulations.
2. Regulation of Takeover Bids: SEBI regulates mergers, acquisitions, and takeovers to protect investors' interests.
3. Inspection and Audits: SEBI inspects and audits stock exchanges and market intermediaries to maintain transparency and integrity.
4. Levying Fees: SEBI collects fees and charges to regulate the securities market effectively.