CMA Intermediate · Financial Management and Business Data Analytics · Capital Market
Under the Securities and Exchange Board of India Act, 1992, which of the following best describes the primary statutory mandate of SEBI?
SEBI's statutory mandate is to protect the interests of investors in securities, promote the development of the securities market and regulate it. Monetary policy rates and currency issue belong to the RBI, and SEBI also oversees stock exchanges, not just the primary market.
- ATo protect the interests of investors in securities, promote development of the securities market and regulate itCorrect
- BTo fix the repo rate and control credit creation by commercial banks
- CTo issue currency notes and act as banker to the Government
- DTo regulate only the primary market and leave stock exchanges unregulated
Explanation
The SEBI Act mandates SEBI to protect investors' interests, promote development of the securities market and regulate it. Fixing the repo rate and currency issue are RBI functions. SEBI also regulates stock exchanges, so the last option is wrong.
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