Question

State any three regulatory functions of the Securities and Exchange Board of India (SEBI).

Hint:

SEBI’s regulatory functions ensure that the securities market operates smoothly, maintaining investor confidence and market fairness.

Answer 1

SEBI's Regulatory Responsibilities:
1. Registration of Market Participants: SEBI mandates registration for brokers, sub-brokers, mutual funds, and other securities market entities to ensure adherence to regulations.
2. Oversight of Takeovers: SEBI governs mergers, acquisitions, and takeovers to safeguard investor interests.
3. Inspection and Audits: SEBI conducts inspections and audits of stock exchanges and market intermediaries to uphold transparency and integrity.
4. Fee Collection: SEBI levies fees and charges to facilitate the effective regulation of the securities market.