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

The Securities and Exchange Board of India (SEBI) has several functions which can be broadly categorized into three types: Regulatory, Development, and Protective functions.

Statement-I: The regulation of takeover bids by companies is indeed one of the Regulatory functions of SEBI. SEBI has regulations in place for takeovers, ensuring that these activities are conducted fairly and protect the interests of all stakeholders involved. Therefore, Statement-I is correct.

Statement-II: The training of intermediaries of the securities market falls under the Development functions of SEBI. This involves enhancing the skills and knowledge of market players to improve the functioning of the securities market. Thus, Statement-II is also correct.

Considering the explanations above, we conclude that both Statement I and Statement II are correct.