Class 12 Business Studies - Chapter Financial Markets NCERT Solutions | Discuss the role of SEBI in regulating t

Welcome to the NCERT Solutions for Class 12th Business Studies - Chapter Financial Markets. This page offers a step-by-step solution to the specific question from Extra Questions, Question 7: discuss the role of sebi in regulating the financi....
Question 7

Discuss the role of SEBI in regulating the financial markets in India.

Answer

The Securities and Exchange Board of India (SEBI) plays a pivotal role in the regulation and development of financial markets. Its primary functions include:

  • Regulating Stock Exchanges: SEBI ensures the smooth functioning of stock exchanges by formulating and enforcing rules.
  • Protecting Investors: SEBI protects the interests of investors by ensuring fair practices and punishing malpractices like insider trading and fraud.
  • Promoting Healthy Growth: It fosters the development of financial markets by introducing new financial products and ensuring transparency.
  • Educating Investors: SEBI works to increase investor awareness and understanding of the financial markets. SEBI has been instrumental in maintaining the integrity and efficiency of India’s financial markets through its regulatory, developmental, and protective functions.

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