‘Securities and Exchange Board of India (SEBI) is the watchdog of the securities market.’ Do you agree? Give four reasons in support of your answer.
Yes, I do agree with this statement as SEBI performs many protective functions for the securities market. They are the following:
Protective Functions: Following are the protective functions of SEBI:
(i) To check unfair trade practices (such as, to supply misleading statements to cheat the investors) in connection with security market.
(ii)To check insiders trading in securities. [Insider trading means the buying and selling of securities by those persons (Directors, Promoters, etc.) who have some secret information about the company and who wish to take the advantage of this secret information.)
(iii) To provide education relating to dealing in securities to the investors.
(iv) To promote code of conduct relating to security market.
