In which of the following years was the Securities and Exchange Board of India (SEBI) established by the government of India to protect the interests of investors in securities and to promote and regulate the securities market?
- A.1992
- B.1999
- C.1987
- D.1985
Correct answer
Explanation
The correct answer is A, 1992. SEBI first appeared in April 1988 as an administrative arrangement with no legal powers, and it became a statutory regulator when the Securities and Exchange Board of India Act was passed in 1992; the words quoted in the question are taken from the preamble of that Act, which speaks of protecting investors, promoting the development of the securities market and regulating it. Because the statutory body dates from the Act, 1992 is the year every examination expects. Option B, 1999, is the year the Central Depository Services Limited was set up, the second depository in India. Option C, 1987, and option D, 1985, come before even the administrative body existed. Keep the sequence in mind: the Securities Contracts (Regulation) Act of 1956, SEBI as an administrative body in 1988, the SEBI Act in 1992 and the Depositories Act in 1996.
Read the full article: Capital Market, SEBI and Stock Exchanges in India
Practice Questions
View allWhich is the oldest stock exchange in Asia?
- A.National Stock Exchange
- B.Bombay Stock Exchange
- C.Calcutta Stock Exchange
- D.Madras Stock Exchange
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It was founded in 1875 as the Native Share and Stock Brokers’ Association, grew out of brokers meeting under a banyan tree in Bombay, and is the oldest stock exchange in Asia; it now stands on Dalal Street and its benchmark index is the Sensex.
Read the full explanation →How many companies make up the BSE Sensex?
- A.20
- B.30
- C.50
- D.100
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The Sensex, or Sensitive Index, of the Bombay Stock Exchange is built from thirty large, well established and actively traded companies drawn from the main sectors of the economy, and it is weighted by free-float market capitalisation.
Read the full explanation →The base year of the BSE Sensex is:
- A.1950-51
- B.1978-79
- C.1993-94
- D.2011-12
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The Sensex was compiled backwards to 1978-79 and that year was given a base value of 100, so the index number states how many times the market value of its thirty constituents has grown since then.
Read the full explanation →The money market in India is regulated by which authority?
- A.SEBI
- B.The Reserve Bank of India
- C.The Ministry of Corporate Affairs
- D.IRDAI
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The money market deals in short-term funds of up to one year, through treasury bills, commercial paper, certificates of deposit and call money, and the Reserve Bank regulates it as part of its control over credit and liquidity.
Read the full explanation →An appeal against an order passed by SEBI lies to:
- A.The High Court of the state concerned
- B.The Securities Appellate Tribunal
- C.The National Company Law Tribunal
- D.The Reserve Bank of India
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A person aggrieved by an order of SEBI may appeal to the Tribunal, which is provided for by the SEBI Act itself, and from the Tribunal a further appeal lies to the Supreme Court on a question of law.
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