Justify the following statements.
(1) The Securities and Exchange Board of India (SEBI) is the regulator for the securities market In India.
Ans.
(1) The Securities and Exchange Board of India (SEBI) was initially established as a non statutory body, i.e. It had no control over anything but later In 1992, It was declared an autonomous body with statutory powers.
(2) Thus, the SEBI was established In 1992 under the Securities and Exchange Board of India Act, 1992. The Securities and Exchange Board of India (SEBI) is the regulator of the capital markets in India.
(3) It plays an important role in regulating the securities market of India. It has Its headquarters In Mumbai and has many regional and local offices all over India. Thus, the Securities and Exchange Board of India (SEBI) Is the regulator for the securities market in India.
(2) Stock Exchanges work for the growth of the Indian economy.
Ans.
(1) A Stock Exchange is also called as a Secondary Market or Stock Market or Share Market or Share Bazar. Stock Exchange Is an organized market for the purchase and sale of Industrial and financial security.
(2) In stock exchange securities of various companies are bought and sold. Investors Invest in companies which give good return on investments.
(3) Also, various companies Invest in most productive Investment projects. This leads to capital formation and economic growth.
(4) Thus, it is rightly justified that, stock exchanges work for the growth of the Indian economy.