Tag: functions of sebi

Questions Related to functions of sebi

BSE is the second in the world to receive Information Security Management System Standard BS 7799-2-2002 certification for its On-Line trading System (BOLT).

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. True

  2. False

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Correct Option: A
Explanation:

BSE is the second in the world to receive Information Security Management System Standard BS 7799-2-2002 certification for its On-Line trading System(BOLT).-this is a true statement. The on-line trading system of BSE is known as BOLT. BOLT is a screen-based automated trading platform. It can be referred as a centralized exchange-based trading system of BSE. It helps the investors to trade from anywhere in the world on BSE trading platform.

OTCEI offers computerized screen-based trading ________________.

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. True

  2. False

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Correct Option: A
Explanation:

OTCEI offers computerized screen-based trading- this is a true statement. The OTCEI is a company incorporated under the Companies Act 1956. OTCEI was set up to provide small and medium companies an access to capital market for raising finance.  OCTCEI is advantageous to the company because it provides methods of raising funds through capital market instruments which are priced fairly.

Before BOLT was introduced in 1995, people used to trade standing in the trading ring.

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. True

  2. False

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Correct Option: A
Explanation:

Before BOLT was introduced in 1995, people used to trade standing in the trading ring- this is a true statement. BOLT is launched by Bombay Stock Exchange. It can be defined as the equity trading platform. Trading ring is the traditional practice of price discovery and trade standing.

Which of the following paved way to the establishment of SEBI?

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. Unofficial private placements

  2. Rigging of prices

  3. Unofficial premium on new issues

  4. All of the above

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Correct Option: D
Explanation:
Following paved way to the establishment of SEBI:
a) Unofficial private placements
b)Rigging of prices
c) Unofficial premium on new issues
The Securities and Exchange Board of India was established by the Government of India as an interim administrative body. SEBI is established in order to protect the interests of the investors and provide safety for investment. SEBI performs certain functions in order to promote and develop activities of stock exchange and increase the business in stock exchange. It also helps to regulate the business in stock exchange. It has framed certain rules and regulations to regulate the intermediaries.

BSE also provides depository services through its _______ arm.

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. Central Depository Services Ltd. (CDSL)

  2. National Securities Depository Limited (NSDL)

  3. NSE

  4. SEBI

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Correct Option: A
Explanation:

BSE also provides depository services through its Cenrtral Depository Services Limited(CDSL) arm. CDSL helps to hold securities either in the certificated or uncertificated form. CDSL enabled book entry transfer of securities. CDSL can be defined as the second Indian securities depository.

Which of the following is the basic function of stock exchange?

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. Pricing of Securities

  2. Safety of Transaction

  3. Contributes to Economic Growth

  4. Providing Liquidity and Marketability to Existing Securities.

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Correct Option: D
Explanation:
Basic function of stock exchange are providing Liquidity and Marketability to existing securities. Stock exchange can be defined as an association, organization or body of individuals whether incorporated or not established for the purpose of assisting, regulating and controlling of business in buying, selling and dealing in securities.

SEBI was to function under the overall administrative control of the _______ of the Government of India.

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. Ministry of Finance

  2. Ministry of Commerce

  3. Ministry of Company Affairs

  4. Ministry of Economy

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Correct Option: A
Explanation:

SEBI was to function under the overall administrative control of the Ministry of Finance of the Government of India. SEBI was established to regulate the activities of stock exchange and to protect the interest of investor and provide safety of investment. SEBI also helps to develop activities of stock exchange.

The Securities and Exchange Board of India was established by the Government of India _____.

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. as a cooperative society

  2. as a banking authority

  3. as an interim administrative body

  4. none of the above

Show answer
Correct Option: C
Explanation:

The Securities and Exchange Board of India was established by the Government of India as an interim administrative body. SEBI is established in order to protect the interests of the investors and provide safety for investment. SEBI performs certain functions in order to promote and develop activities of stock exchange and increase the business in stock exchange. It also helps to regulate the business in stock exchange. It has framed certain rules and regulations to regulate the intermediaries.

Identify the development function of SEBI.

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. Investor education.

  2. Promotion of fair practices and code of conduct of all SROs.

  3. Training of intermediaries

  4. All of the above

Show answer
Correct Option: D
Explanation:
Development functions are performed by the SEBI to promote and develop activities in stock exchange and increase the business of stock exchange. Development functions of SEBI include:
a) Investor education.
b) Promotion of fair practices and code of conduct of all SROs.
c) Training of intermediaries.

BSE provides a host of services to capital market participants including ________.

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. risk management

  2. clearing

  3. settlement

  4. all of the above

Show answer
Correct Option: D
Explanation:
BSE provides a host of services to capital market participants including:
a) risk management
b) clearing
c) settlementBSE helps to promote industrial development in the country through efficient resource mobilization by way of investment in corporate securities. It helps to maintain well regulated markets on securities.