Question

Statement-I: Regulation of takeover bids by companies is one of the Regulatory functions of the Securities and Exchange Board of India. Statement-II: Training of intermediaries of the securities market is one of the Development functions of the Securities and Exchange Board of India. Choose the correct option from the following:

• A. Statement I is correct and Statement II is incorrect.
• B. Statement II is correct and Statement I is incorrect.
• C. Both Statement I and Statement II are correct.
• D. Both Statement I and Statement II are incorrect.

Hint:

SEBI performs Regulatory, Developmental, and Protective functions. Regulatory functions include overseeing stock exchanges, mutual funds, and takeovers. Developmental functions focus on training, education, and innovation in the securities market.

Answer 1

The Correct Option is C

Step 1: Understanding the Role of SEBI The Securities and Exchange Board of India (SEBI) has three major functions:
1. Regulatory Functions: These include regulating takeover bids, ensuring fair practices, and enforcing rules for market participants.
2. Development Functions: These include training intermediaries, promoting investor education, and facilitating market development.

Step 2: Evaluating the Statements
- Statement I: Regulation of takeover bids is indeed a part of SEBI’s Regulatory functions.
- Statement II: Training of intermediaries is part of SEBI’s Development functions. Since both statements are correct, the correct answer is Both Statement I and Statement II are correct. 8