Question
Why was Securities and Exchange Board of India (SEBI) set up? Explain any four regulatory functions of SEBI.
Solution
SEBI was setup to control the stock exchanges and protects the interest of investors.Regulatory Functions: The following are the regulatory functions of the SEBI:
(i) To regulate the business being done in the share market.
(ii)To register brokers, sub-brokers, transfer agents, merchant banks, underwriters etc.
(iii) To register and regulate the credit rating agency.
(iv) To register and regulate the venture capital fund.
(v) To carry out audit of share markets.
