Question : Case Study 81

OPQ Ltd. is a technology startup planning to trade its shares on a stock exchange. The company's management is reviewing the protective functions of SEBI.

Question : 

What is the main aim of SEBI's protective functions?

Option 1: Promoting economic growth
 

Option 2: Ensuring transparency
 

Option 3: Encouraging mergers

 

Option 4: Setting dividend rates


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: Ensuring transparency


Solution : The correct answer is (b) Ensuring transparency

The main aim of SEBI's protective functions is to ensure transparency in the securities market. SEBI's protective functions are designed to safeguard the interests of investors and maintain the integrity and fairness of the market. By enforcing regulations, preventing fraudulent practices, ensuring accurate and timely disclosure of information, and prohibiting insider trading, SEBI promotes transparency. Transparency is crucial for investor confidence, fair market practices, and the overall health and stability of the financial system. It allows investors to make informed decisions based on accurate and reliable information, fostering trust and contributing to the development and growth of the market.



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