SEBI

Context: The Supreme Court asked the Securities and Exchange Board of India (SEBI) and the government to produce the existing regulatory framework in place to protect investors from share market volatility.

About SEBI (The Securities and Exchange Board of India (SEBI) :

• The Securities and Exchange Board of India was established as a statutory body in the year 1992.
• Headquarters: Mumbai, Maharashtra
• Ministry: Ministry of Finance
• Chairperson: Ms. Madhabi Puri Buch
• The chairman is nominated by the Union Government of India. Two members, i.e., Officers from the Union Finance Ministry. One member from the Reserve Bank of India. The remaining five members are nominated by the Union Government of India, out of them at least three shall be whole-time members.

About National Stock Exchange

• The National Stock Exchange is an Indian stock exchange headquartered in Mumbai, Maharashtra.
• The NSE was designated as a stock exchange in 1993.
• More than 2000 companies are listed on the NSE.
• The NSE’s Stock Index – NIFTY – represents the top 50 stocks on the stock exchange.

About Bombay Stock Exchange (BSE)

• The BSE is one of Asia’s oldest stock exchanges, with a long history of fast trading
• The BSE was registered as a stock exchange in 1957 .
• The Stock Index of the Bombay Stock Exchange (BSE) – SENSEX – provides the top 30 stock indexes.
• More than 5000 companies are listed on the BSE.
• Functions:
  • Quasi-legislative – drafts regulations
  • Quasi-judicial – passes rulings and orders
  • Quasi-executive – conducts investigation and enforcement action
• SEBI is responsible for the needs of three groups:
  • Issuers of securities
  • Investors
  • Market intermediaries
• Powers:
  • To approve by−laws of Securities exchanges.
  • To require the Securities exchange to amend their by−laws.
  • Inspect the books of accounts and call for periodical returns from recognized Securities exchanges.
  • Inspect the books of accounts of financial intermediaries.
  • Compel certain companies to list their shares in one or more Securities exchanges.
  • Registration of Brokers and sub-brokers

Source: THE HINDU

Previous Year Questions

Q.1) With reference to the Indian economy, consider the following statements. (2022)

1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.
2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.

Which of the above statements are correct?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

Q.2) Consider the following statements: (2022)

1. In India, credit rating agencies are regulated by Reserve Bank of India.
2. The rating agency popularly known as ICRA is a public limited company.
3. Brickwork Ratings is an Indian credit rating agency.

Which of the statements given above are correct?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3