Question

Write three functions of SEBI.

Hint:

SEBI's role is crucial in maintaining investor confidence and promoting a healthy and regulated securities market.

Answer 1

Step 1: Understanding the functions of SEBI.
The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India. Its main functions are:
1. Regulation of Stock Exchanges: SEBI monitors and regulates the functioning of stock exchanges in India to ensure fair practices. It ensures that the exchange operates in a transparent manner to protect investors.
2. Protection of Investors: SEBI implements policies to safeguard the interests of investors in the securities market. It works towards providing investors with timely and accurate information.
3. Supervision of Market Intermediaries: SEBI regulates the operations of various market intermediaries, such as brokers, portfolio managers, and other financial institutions, to maintain fairness and transparency in the market.

Step 2: Conclusion.
These functions help in ensuring a fair, transparent, and efficient market that protects the interests of investors.