Question 14 Marks
Few years ago, there were many malpractices, unfair trade practices and frauds and scams were taking place in Stock Exchange. All these affected investor's confidence, faith and trust in Stock Exchange. The Government of India decided to set up a separate body for this purpose who was given control of stock exchange. This separated ownership and control of stock exchange.(i) Name the concept which separates the ownership and control of stock exchange.(ii) Name the body set up by the government of India to contract the stock exchange.(iii) State the objectives of that regulating body.
Answer
View full question & answer→(i) The concept which separates ownership and control is called as demutualisation.(ii) The regulatory body set up by government of India is "SEBI" Securities and Exchange Board of India.(iii) The objectives of SEBI are:The overall objectives of SEBI are to protect the interest of investors, to promote the development of stock exchange and to regulate the activities of stock market. The objectives of SEBI are:1. To regulate the activities of stock exchange.2. To protect the rights of investors and ensuring safety to their investment.3. To prevent fraudulent and malpractices by having balance between self regulation of business and its statutory regulations.4. To regulate and develop a code of conduct for intermediaries such as brokers, underwriters, etc.