After being constituted as a non-statutory body in 1988, the Securities and Exchange Board of India (SEBI) was established as a ‘statutory body’ in the year ______.
1992
Understanding SEBI's Transition to a Statutory Body
The question asks about the year the Securities and Exchange Board of India (SEBI) was established as a 'statutory body', after being initially constituted as a non-statutory body in 1988.
Let's break down the history of SEBI:
- SEBI was initially set up as a non-statutory body in 1988 through an executive resolution.
- Its primary role at that time was to regulate the capital markets in India.
- However, to give SEBI more power and legal authority to effectively regulate the burgeoning Indian capital markets, it needed to be granted statutory status.
- The transition from a non-statutory body to a statutory body occurred when the Indian Parliament passed the Securities and Exchange Board of India Act.
The year the Securities and Exchange Board of India (SEBI) Act was passed, thereby giving SEBI statutory recognition and enhanced powers, was 1992.
Thus, SEBI became a statutory body in 1992.
Analysis of Options for SEBI's Statutory Status Year
- 1992: This is the year the SEBI Act was passed, granting it statutory status.
- 1993: While SEBI was active in 1993, its statutory status was established in the preceding year.
- 1995: This year is later than the crucial date for SEBI's statutory establishment.
- 1994: This year is also later than the date when SEBI became a statutory body.
Based on the historical context and the passing of the SEBI Act, 1992 is the correct year for SEBI gaining statutory powers.
Conclusion on SEBI's Statutory Establishment
The Securities and Exchange Board of India (SEBI) was indeed established as a 'statutory body' in the year 1992 through the SEBI Act, 1992. This change provided SEBI with the necessary legal framework and powers to regulate the Indian securities market effectively.
Revision Table: Key Dates for SEBI
| Event | Year | Significance |
|---|---|---|
| Initial Constitution | 1988 | Established as a non-statutory body via executive resolution. |
| Statutory Establishment | 1992 | Established as a statutory body via the SEBI Act, 1992, granting legal powers. |
Additional Information about SEBI and Statutory Bodies
A statutory body is a corporate body established by an Act of Parliament or State Legislature. This gives the body a legal backing and powers defined by the statute. In contrast, a non-statutory body might be set up by an executive resolution or order without specific legislative backing for its powers.
SEBI's transition to a statutory body in 1992 was a crucial step for regulating the rapidly growing Indian capital markets and protecting the interests of investors. Its powers include regulating stock exchanges, registering intermediaries, prohibiting fraudulent and unfair trade practices, and promoting investor education.
Important Questions from Miscellaneous
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A railway wagon (open at the top) of mass M1 is moving with speed v1 along a straight track. As a result of rain, after some time it gets partially filled with water so that the mass of the wagon becomes M2 and speed becomes v2. Taking the rain to be falling vertically and the water stationery inside the wagon, the relation between the two speeds v1 and v2 is :
Consider the following statements:
1. Distance between the longitudes becomes zero on North Pole and South Pole.
2. Distance between the longitudes is maximum on the Equator.
3. Number of longitudes is more than number of latitudes.
Which of the statements given above is/are correct?
One block of 2⋅0 kg mass is placed on top of another block of 3⋅0 kg mass. The coefficient of static friction between the two blocks is 0⋅2. The bottom block is pulled with a horizontal force F such that both the blocks move together without slipping. Taking acceleration due to gravity as 10 m/s2, the maximum value of the frictional force is :
