Question

Q. With reference to the ‘Securities and Exchange Board of India (SEBI), which of the following statements is/are correct?

Select the correct answer using the code given below:

• A.
  1 only
• B.
  1 and 3 only
• C.
  2 and 3 only
• D.
  1, 2 and 3

Answer 1

The correct option is B

1 and 3 only
Explanation:

Statement 1 is correct: Securities and Exchange Board of India (SEBI) was established under SEBI Act 1992 as a statutory body. The scope of SEBI’s activities is very wide. It is empowered to frame rules, regulations, guidelines and direction etc. in respect of both primary and secondary securities markets.

Statement 2 is incorrect: SEBI has the power to regulate the following branches:

• depositories, participants and custodians
• debenture trustees and trust deeds
• insider trading, FII’s merchant bankers and mutual funds
• portfolio managers, investment advisors, registrars to capital issues and share transfer agents
• stock broker, sub-brokers, underwriters, bankers to the issues and venture capital funds and

Statement 3 is correct: All the substantial acquisition of shares and takeovers cannot take place without the prior permission of SEBI.