Question

SOME IMPORTANT TRUE AND FALSE WITH REASON:
Securities market is an unorganized market in India.

• A. True
• B. False

Answer 1

The correct option is B False

This statement is 'False' because of the following reasons:
(i) Stock exchange is a place where securities are bought and sold.
(ii) These securities are shares, debentures and bonds i.e., the securities include equity shares, preference shares, debentures, Govt. bonds and mutual funds.
(iii) The Govt. of India has established SEBI i.e., Securities and Exchange Board of India in April, 1988 and has become a Statutory Board under SEBI Act 1992 to have control over the working of stock exchanges.
(iv) SEBI regulates the working of stock brokers, sub brokers, share transfer agents, bankers to an issue.
(v) It promotes and regulates self regulatory organisations.
(vi) It regulates ad develops a code of conduct and fair practice by brokers etc.
(vii) It also prohibits fraudulent and unfair trade practices relating to securities market. Thus, the securities market is an organised market.