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CS Executive · Capital Market and Securities Laws · Basics of Capital Market

Neha notes that SEBI makes regulations, issues orders and conducts investigations and adjudication in the securities market. Which description best captures this feature of SEBI's powers?

SEBI has quasi-legislative, quasi-judicial and quasi-executive powers. It frames regulations, adjudicates and passes orders, and carries out inspection, investigation and enforcement. It is therefore not merely advisory, nor limited to judicial functions, and its powers come from statute rather than from stock exchanges.

  1. AIt has quasi-legislative, quasi-judicial and quasi-executive powersCorrect
  2. BIt has only advisory powers without enforcement ability
  3. CIt has only executive powers delegated by stock exchanges
  4. DIt has only judicial powers like a civil court

Explanation

SEBI frames regulations (quasi-legislative), conducts adjudication and passes orders (quasi-judicial), and inspects and enforces (quasi-executive). It is not merely advisory and does not derive powers from stock exchanges.

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