Consider the following statements with respect to SEBI: 1. It was established as a statutory body for regulating the securities market. 2. Commodities derivative markets is also regulated by SEBI. Which of the given statement/s is/are correct?
A
1 only
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B
2 only
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C
Both 1 and 2
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D
Neither 1 nor 2
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Solution
The correct option is B 2 only
Initially SEBI was a non-statutory body without any statutory power. However, in 1992, the SEBI was given additional statutory power by the Government of India through an amendment to the Securities and Exchange Board of India Act, 1992.
In April 1988 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India.
In 2015, the Forward Market Commission was merged with SEBI.
With this, the regulation of commodity derivatives market has shifted to SEBI under Securities Contracts Regulation Act (SCRA) 1956.