wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Mr. Sanjay Nehra was the Chairman of 'Taran Bank.' The bank was earning good profits. Shareholders were happy as the bank was paying regular dividends. The market price of their shares was also steadily rising. The bank was about to announce taking over of 'Vena Bank.'
Mr. Sanjay Nehra knew that the share price of 'Taran Bank' would rise on this announcement. Being a part of the bank, he was not allowed to buy shares of the bank. He called one of his rich friends Sudhir and asked him to invest Rs.5 crores in shares of his bank promising him the capital gains.
As expected the share prices went up by 40% and the market price of Suhir's shares was now Rs.7 crores. He earned a profit of Rs.2 crores. He gave Rs.1 crore to Mr. Sanjay Nehra and kept Rs.1 crore with himself. On regular inspection and by conducting enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this irregularity. The SEBI imposed a heavy penalty on Mr. Sanjay Nehra. By quoting the lines from the above pare identify and state any two functions that were performed by SEBI in the above case.

Open in App
Solution

The two functions performed by SEBI in the given case are 'Regulatory Functions' and 'Protective Functions'.
The lines from the paragraph which indicate the functions performed are as follows'
Regulatory Functions: 'Regular inspection and by conducting enquiries of the brokers involved'
Protective Functions: 'Imposed a heavy penalty on Mr. Sanjay Nehra'.

flag
Suggest Corrections
thumbs-up
0
similar_icon
Similar questions
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Application of Compound Interest
MATHEMATICS
Watch in App
Join BYJU'S Learning Program
CrossIcon