CSEET · Economic and Business Environment · Indian Financial Markets
Which of the following functions is performed by the Reserve Bank of India rather than SEBI?
Acting as banker to the government and issuing currency notes is an RBI function because it is the central bank. Registering mutual funds, regulating brokers and merchant bankers, and prohibiting insider trading are all SEBI functions in the securities market.
- ARegistering mutual fund schemes
- BRegulating stock brokers and merchant bankers
- CActing as banker to the government and issuing currency notesCorrect
- DProhibiting insider trading in listed securities
Explanation
The RBI is the central bank: it issues currency notes, acts as banker to the government and to banks, and conducts monetary policy. The other options are SEBI functions: registering mutual funds, regulating brokers and merchant bankers, and prohibiting insider trading.
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