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CA Foundation · Business Laws · Indian Regulatory Framework

A listed company's promoters are suspected of insider trading in its shares on a stock exchange. Which regulator is primarily responsible for investigating and acting against such conduct?

SEBI is responsible. It regulates India's securities market, protects investors and acts against insider trading in listed shares. IRDAI covers insurance, CCI covers competition issues, and the Registrar of Companies deals with company registration and filings.

  1. ASecurities and Exchange Board of IndiaCorrect
  2. BInsurance Regulatory and Development Authority of India
  3. CCompetition Commission of India
  4. DRegistrar of Companies

Explanation

SEBI regulates the securities market and protects investors, including action on insider trading. IRDAI regulates insurance, CCI deals with anti-competitive practices, and the Registrar of Companies handles incorporation and filings under company law, so none of them is the primary regulator here.

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