Question

State any three objectives of Securities and Exchange Board of India (SEBI).

Hint:

SEBI Objectives:
1. Protect Investors.
2. Prevent Malpractices.
3. Regulate Intermediaries.

Answer 1

Step 1: Identify the body being asked about.
The question is about SEBI, the Securities and Exchange Board of India, set up to regulate and develop the securities market and protect the interests of everyone dealing in it.
Step 2: Recall the broad goals SEBI is meant to serve.
SEBI works to look after investors, keep the market free of unfair practices, and make sure the market itself grows in an organised and efficient way.
Step 3: State three objectives.
First, protection of investors, SEBI safeguards the rights of investors, gives them accurate information, and provides a mechanism to redress their complaints. Second, prevention of malpractices, SEBI keeps a check on practices like insider trading and price rigging so no one gets an unfair advantage. Third, regulation and development of the securities market, SEBI frames rules for intermediaries such as brokers and merchant bankers and works to make the market more efficient and competitive.