Between 1991 and 2001 many malpractices and unfair trading practices like price rigging, an unofficial premium on new shares etc. were practiced. All these had eroded investors’ confidence and multiplied their grievances. To overcome these, Government of India decided to set-up a separate regulatory body for this purpose. Name the separate body set up by Government of India. Specify three objectives that support the case.
Between 1991 and 2001 many malpractices and unfair trading practices like price rigging, an unofficial premium on new shares etc. were practiced. All these had eroded investors’ confidence and multiplied their grievances. To overcome these, Government of India decided to set-up a separate regulatory body for this purpose. Name the separate body set up by Government of India. Specify three objectives that support the case.
The separate body set-up by the Government of India is Securities Exchange Board of India (SEBI). Three objectives of SEBI that support the case are :
(i) To regulate the activities of the stock exchange that ensures a competitive environment and efficiency in services by maintaining liquidity, safety and profitability of securities in the market.
(ii) To protect the rights of investors and ensuring safety to their investment by providing adequate, accurate and authentic information on a real-time basis.
(iii) To prevent fraudulent trading and malpractices by having a balance between self-regulation of business and its statutory regulations.
The separate body set-up by the Government of India is Securities Exchange Board of India (SEBI). Three objectives of SEBI that support the case are :
(i) To regulate the activities of the stock exchange that ensures a competitive environment and efficiency in services by maintaining liquidity, safety and profitability of securities in the market.
(ii) To protect the rights of investors and ensuring safety to their investment by providing adequate, accurate and authentic information on a real-time basis.
(iii) To prevent fraudulent trading and malpractices by having a balance between self-regulation of business and its statutory regulations.
