Question : Statement 1: SEBI's development functions include investor education and training.
Statement 2: SEBI's development functions solely focus on regulating credit rating agencies.
Option 1: Statement 1 is true, and statement 2 is true.
Option 2: Statement 1 is true, but statement 2 is false.
Option 3: Statement 1 is false, and statement 2 is true.
Option 4: Statement 1 is false, and statement 2 is false.
Correct Answer: Statement 1 is true, but statement 2 is false.
Solution : The correct answer is (b) Statement 1 is true, and statement 2 is false.
Statement 1 is true. SEBI, as part of its development functions, focuses on investor education and training to enhance awareness and understanding of financial markets among investors. Educating and training investors is a key component of SEBI's efforts to develop the securities market.
statement 2 is false. SEBI's development functions encompass a broader range of activities aimed at developing and promoting the securities market. While regulating credit rating agencies might be one aspect of its responsibilities, SEBI's development functions extend beyond this and include various initiatives to facilitate market growth, investor education, capacity building, and more.
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