The answers to the given questions are explained below in detail:
(i) Identify the securities market regulator referred to above:
The securities market regulator referred to is the Securities and Exchange Board of India (SEBI).
Explanation:
SEBI is the regulatory authority responsible for overseeing and regulating the securities market in India. It ensures that companies raising capital follow proper rules and that the interests of investors are protected.
(ii) State any one way in which the securities market regulator protects investors:
SEBI protects investors by ensuring transparency and disclosure of accurate information by companies issuing securities.
Explanation:
Companies are required to provide complete and correct information in their prospectus. This helps investors make informed decisions and reduces the chances of fraud or misleading practices.
(iii) Which intermediary of the securities market regulator protects investors:
The intermediary is the Merchant Banker.
Explanation:
Merchant bankers play a key role in issue management. They ensure that all legal formalities are followed, disclosures are proper, and investor interests are safeguarded during the issue of securities.
(iv) Can the securities market regulator permit a commercial bank to give funds to Marvel Ltd.? Justify your answer:
No, SEBI cannot permit a commercial bank to give funds to Marvel Ltd.
Reason:
SEBI regulates only the securities market (shares, debentures, etc.), whereas commercial banks are regulated by the Reserve Bank of India (RBI). Therefore, decisions related to lending by banks fall under RBI’s jurisdiction, not SEBI.
Conclusion:
SEBI ensures fair functioning of the securities market and protects investors, but it does not control banking operations, which are governed by RBI.