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CMA Foundation · Fundamentals of Business Economics and Management · Economic and Business Environment

A listed company's board is accused of concealing material information from investors and manipulating its share price. Which regulatory body in India is primarily empowered to protect investors in the securities market in such a case?

SEBI is the body primarily responsible. It regulates India's securities market, protects investors and acts against fraud, insider trading and price manipulation. The RBI regulates banking and money, IRDAI regulates insurance, and NITI Aayog is only a policy advisory institution without regulatory enforcement powers.

  1. AReserve Bank of India
  2. BSecurities and Exchange Board of IndiaCorrect
  3. CInsurance Regulatory and Development Authority of India
  4. DNITI Aayog

Explanation

SEBI regulates the securities market, protects investor interests and curbs fraudulent and unfair trade practices such as price manipulation. The RBI regulates banks and monetary policy, IRDAI regulates insurance, and NITI Aayog is a policy think tank without regulatory powers.

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