Which Indian financial institution protects investors in a stock market?
- A.Bombay Stock Exchange
- B.Reserve Bank of India
- C.Securities and Exchange Board of India
- D.National Stock Exchange
Correct answer
Explanation
The correct answer is C, Securities and Exchange Board of India. SEBI is the regulator of the securities market, and protecting the interests of investors is the first duty written into its founding law. It was set up in 1988 and given statutory powers by the SEBI Act of 1992, after the securities scam of that period exposed how weak the old controls were; its headquarters is in Mumbai. SEBI registers brokers, merchant bankers and mutual funds, lays down the rules for public issues, acts against insider trading and price rigging, and runs an online grievance system called SCORES for small investors. A is wrong because the Bombay Stock Exchange is a market place where shares are traded, not the regulator that polices it. B is wrong because the Reserve Bank of India looks after banks, currency and credit. D is wrong because the National Stock Exchange, like the BSE, is itself a body regulated by SEBI. Exam tip: SEBI, formed 1988, statutory in 1992, headquarters Mumbai, regulator of the securities market.
Practice Questions
View allAccording to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
- A.improve
- B.diminish
- C.remain constant
- D.first diminish and then improve
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Each extra unit of a good gives a consumer less additional satisfaction than the unit before it, so marginal utility falls as consumption rises.
Read the full explanation →Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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The burden of a tax falls more heavily on whichever side of the market is less elastic, the side that cannot easily walk away.
Read the full explanation →UBI, as an alternative for subsidies in poverty alleviation, stands for
- A.Union Basic Income
- B.Undefined Basic Income
- C.Unconditional Basic Income
- D.Universal Basic Income
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UBI is the idea of paying every citizen a fixed sum of money regularly, without conditions, in place of a large number of separate subsidies and welfare schemes.
Read the full explanation →Who among the following is the Chairman of the Fourteenth Finance Commission?
- A.C. Rangarajan
- B.Vijay Kelkar
- C.Y. V. Reddy
- D.Rakesh Mohan
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The Fourteenth Finance Commission, set up in 2013 for the award period 2015-2020, was chaired by Y. V. Reddy, a former Governor of the Reserve Bank of India.
Read the full explanation →Why was constitutional amendment needed for introducing GST?
- A.States were not willing to agree with the Union for introduction of GST without amendment in the Constitution.
- B.GST was to be implemented on concurrent base and Article 246 was inadequate for such a case.
- C.The Empowered Committee of Finance Ministers had recommended for constitutional amendment.
- D.The GST Council had recommended for constitutional amendment so that its power enhances.
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GST is levied by the Union and the States together on the same supply, and Article 246, which splits taxing powers between them through separate lists, did not allow such a concurrent tax.
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