CSEET · Economic and Business Environment · Indian Financial Markets
Which of the following is a protective function of SEBI?
Prohibiting fraudulent and unfair trade practices in securities markets is a protective function of SEBI. It guards investors against insider trading and malpractice. Setting the repo rate belongs to the RBI, licensing insurers to IRDAI, and one-rupee notes are issued by the Government of India.
- ASetting the repo rate
- BProhibiting fraudulent and unfair trade practices in securities marketsCorrect
- CLicensing life insurance companies
- DIssuing one-rupee notes
Explanation
SEBI's protective role includes prohibiting insider trading and fraudulent and unfair trade practices, and educating investors. Setting the repo rate is done by the RBI's monetary policy framework, licensing insurers is IRDAI's role, and the one-rupee note is issued by the Government of India, not SEBI.
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