MCQs on Securities and Exchange Board of India

The Securities and Exchange Board of India (SEBI) is a regulatory body that protects the interests of those who invest in the securities market. It also regulates the functioning of the stock markets and mutual funds in the country. The Government of India established SEBI in 1992 to help prevent fraudulent practices within stock exchanges, formulate a code of conduct for financial intermediaries, guide investors and ensure that their investments are safe.

We have made a list of multiple-choice questions and answers on SEBI to help students understand the topic better.

  1. The Chairman of Securities and Exchange Board of India is appointed by the ______.
    1. Ministry of Finance
    2. Reserve Bank of India (RBI)
    3. Stock Exchanges
    4. None of the above

    2. Answer: a

  2. The headquarters of the Securities and Exchange Board of India are in ______.
    1. Mumbai
    2. New Delhi
    3. Kolkata
    4. Chennai

    3. Answer: a

  3. Who is the Current Chairman of the Securities and Exchange Board of India?
    1. C B Bhave
    2. Ajay Tyagi
    3. U K Sinha
    4. None of the above

    4. Answer: b

  4. The Securities and Exchange Board of India meets the needs of ________.
    1. Investors
    2. Market intermediaries
    3. Issuers of securities
    4. All of the above

    5. <

    Answer: d

  5. The total number of board members in the Securities and Exchange Board of India is __________.
    1. 5
    2. 7
    3. 10
    4. 9

    6. Answer: d

  6. The number of regional offices of the Securities and Exchange Board of India is ____________.
    1. One
    2. Three
    3. Four
    4. Two

    7. Answer: c

  7. The Chairman of the Securities and Exchange Board of India is appointed for a period of ______.
    1. Four years
    2. Three years
    3. Five years
    4. Two years

    8. Answer: c

  8. The Securities and Exchange Board of India was constituted on __________.
    1. 10th July 1991
    2. 11th October 1989
    3. 12th April 1988
    4. None of the above

    9. Answer: c

  9. Which of the following statements about the Securities and Exchange Board of India is correct?
    1. One of the objectives of setting up SEBI was to protect the interests of investors.
    2. SEBI was established under the Securities (Contract and Regulation) Act, 1956.
    3. SEBI was formed from among the Directors of stock exchanges in India.
    4. SEBI issued various rules and regulations to help bring monetary gains for investors.

    10. Answer: a

  10. The Securities and Exchange Board of India has a department for cases related to diversion of funds, resources and bank loans by promoters of a company. What is the name of that department?
    1. Financial Corporation and Investigation Department
    2. Corporation Finance Investigation Department
    3. Funds and Stocks Investigation Department
    4. Funds and Securities Investigation Department

    11. Answer: a

  11. Which of the following agencies conducts physical oversight of mutual funds and depositories?
    1. Securities and Exchange Board of India (SEBI)
    2. Non Banking Financial Company (NBFC)
    3. Reserve Bank of India (RBI)
    4. Association of Mutual Funds in India (AMFI)

    12. Answer: a

  12. Which of the following is not a public sector unit?
    1. Reserve Bank of India (RBI)
    2. Securities and Exchange Board of India (SEBI)
    3. State Bank of India (SBI)
    4. Industrial Development Bank of India (IDBI)

    13. Answer: d

  13. Which of the following is a function of the Securities and Exchange Board of India?
    1. Promote fair practices and prohibit fraudulent activities related to securities trading.
    2. Check price rigging of securities.
    3. Prohibit insider trading by barring companies from buying their shares in the secondary market.
    4. All of the above.

    14. Answer: d

  14. The Securities and Exchange Board of India has launched an online registration system for _____.
    1. Participatory Notes
    2. Infrastructure Investment Trust (InvIT)
    3. Real Estate Investment Trust (REIT)
    4. Both b and c

    15. Answer: d

  15. The Securities and Exchange Board of India has granted a unified license to ________ to operate in the commodity derivative and equity markets.
    1. Non Banking Financial Company (NBFC)
    2. Clearing members
    3. Brokers
    4. Both b and c

    16. Answer: d

  16. The Securities and Exchange Board of India has allowed celebrities to endorse __________.
    1. Mutual Funds
    2. Insurance
    3. Stocks and shares
    4. Dividends

    17. Answer: a

  17. The Securities and Exchange Board of India has announced regulations to tighten ________.
    1. Investor trading
    2. Algorithmic trading
    3. Spot trading
    4. None of the above

    18. Answer: b

  18. Which of the following is a function of the Securities and Exchange Board of India?
    1. Conduct audits and inquiries of stock exchanges.
    2. Supervise the process of taking over a company.
    3. Control the working of merchant brokers and stockbrokers.
    4. All of the above.

    19. Answer: d

  19. The Securities and Exchange Board of India Act was passed on _______.
    1. 30th January 1982
    2. 30th January 1987
    3. 30th January 1992
    4. 30th January 1990

    20. Answer: c

  20. The Chairman of the Securities and Exchange Board of India can be reappointed for a period of ______.
    1. Two years
    2. Three years
    3. One year
    4. None of the above

    21. Answer: a

  21. The Securities and Exchange Board of India Ombudsman was introduced in the year ________.
    1. 2001
    2. 2003
    3. 2000
    4. 2002

    22. Answer: c

  22. Which of the following is not an objective of the Securities and Exchange Board of India?
    1. To become a platform that promotes businesses.
    2. To regulate the securities market in India.
    3. To encourage development of the securities market in India.
    4. To protect investors from fraudulent activities.

    23. Answer: a

  23. The Securities and Exchange Board of India had dropped the Ombudsman for the securities market in __________.
    1. June 2021
    2. May 2021
    3. July 2021
    4. None of the above

    24. Answer: b

  24. ______________ has asked intermediaries and companies to make regulatory payments in digital mode.
    1. Insurance Regulatory and Development Authority (IRDA)
    2. Reserve Bank of India (RBI)
    3. Securities and Exchange Board of India (SEBI)
    4. None of the above

    25. Answer: c

  25. Which of the following is a function of the Securities and Exchange Board of India?
    1. Making underwriting optional to reduce the cost of issue.
    2. Training intermediaries who are part of the security market.
    3. Introducing trading through electronic means with the help of registered stockbrokers.
    4. All of the above.

    26. Answer: d

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