The Securities and Exchange Board of India was given statutory powers by which law?
- A.The Securities Contracts (Regulation) Act, 1956
- B.The Companies Act, 1956
- C.The SEBI Act, 1992
- D.The Depositories Act, 1996
Correct answer
Explanation
The correct answer is C, the SEBI Act, 1992. SEBI was set up in 1988 as a non-statutory body and was given statutory status and powers by the Securities and Exchange Board of India Act, 1992, after which it became the regulator of the securities market, with its head office in Mumbai; appeals from its orders lie to the Securities Appellate Tribunal. Option A is wrong because the Securities Contracts (Regulation) Act, 1956 provides for the recognition and regulation of stock exchanges themselves and predates SEBI. Option B is wrong because the Companies Act deals with the incorporation and management of companies. Option D is wrong because the Depositories Act, 1996 is the law under which NSDL and CDSL hold shares in dematerialised form. A further point is that SEBI has its head office in Mumbai with regional offices at Delhi, Kolkata, Chennai and Ahmedabad, and that its three stated functions are protective, regulatory and developmental, which papers ask as a statement-based question.
Read the full article: Stock Exchanges and Indices of the World: Sensex to Nikkei
Practice Questions
View allWhich is the oldest stock exchange in Asia?
- A.National Stock Exchange
- B.Bombay Stock Exchange
- C.Tokyo Stock Exchange
- D.Hong Kong Stock Exchange
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It was established in 1875 as the Native Share and Stock Brokers Association and functions from Dalal Street in Mumbai, which makes it the oldest stock exchange in Asia; it was also the first exchange in India to receive permanent recognition from the Government under the Securities Contracts (Regulation) Act…
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, short for Sensitive Index, is composed of 30 large, well established and actively traded companies listed on the Bombay Stock Exchange, and since 2003 it has been calculated on the free-float market capitalisation method, which counts only the shares actually available for trading.
Read the full explanation →What is the base year of the BSE SENSEX, and its base value?
- A.1978-79, base value 100
- B.1980-81, base value 100
- C.1991-92, base value 1000
- D.1995-96, base value 1000
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The Sensex was launched in 1986 and its series was worked back to the base year 1978-79, for which the index value is taken as 100, so that a Sensex reading shows how many times the market has grown since that base.
Read the full explanation →The Dow Jones Industrial Average is the benchmark index of the stock market of which country?
- A.United Kingdom
- B.United States
- C.Germany
- D.Japan
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The Dow Jones Industrial Average tracks 30 large American companies and is quoted for the New York Stock Exchange; it was created by Charles Dow in 1896 and is the oldest index of share prices still in use, the broader American benchmark being the S&P 500 and the technology-heavy one…
Read the full explanation →Nikkei 225 is the share price index of which country?
- A.China
- B.South Korea
- C.Japan
- D.Singapore
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The Nikkei 225 is the benchmark index of the Tokyo Stock Exchange and is named after Nihon Keizai Shimbun, the newspaper that has compiled it since the 1950s; it covers 225 leading Japanese companies.
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