For the discharge of its functions efficiently, SEBI has been vested with the following powers : (a) to approve by-laws of stock exchanges (b) to direct the stock exchanges to amend their by-laws (c) inspect the books of accounts and call for periodical returns from recognized stock exchanges (d) inspect the books of accounts of financial intermediaries (e) compel certain companies to list their shares in one or more stock exchanges (f) registration of brokers Codes :
(a), (b), (c), (d), (e) and (f)
SEBI draws its powers from the SEBI Act, 1992 (mainly section 11) and from the Securities Contracts (Regulation) Act, 1956, whose powers over stock exchanges were delegated to SEBI. Each listed power can be checked against these.
(a) and (b): SEBI approves the by-laws of recognised stock exchanges and can direct an exchange to make or amend its rules and by-laws under the SCRA. Both are correct.
(c) and (d): Section 11(2) of the SEBI Act empowers it to call for information, inspect books and conduct inquiries and audits of stock exchanges and of intermediaries such as brokers, merchant bankers and registrars; exchanges also file periodical returns with it. Both are correct.
(e): The SCRA power to compel a public company to list its shares on one or more recognised stock exchanges was delegated to SEBI. Correct.
(f): Under section 12 of the SEBI Act, stock brokers, sub-brokers and other intermediaries must obtain a certificate of registration from SEBI. Correct.
All six are powers of SEBI, so any code that leaves one out is incomplete.
Hence, (a), (b), (c), (d), (e) and (f).
Important Questions from SEBI
As of August 2018, who among the following is the Chairman of SEBI?
To prevent recurrence of scams in Indian Capital Market, the Government of India has assigned regulatory powers to _______.
- In which of the following year Investor Protection and Education Fund Regulations was issued by the Securities and Exchange Board of India?
1. 1992
2. 1999
3. 2003
4. 2009 Which one of the following statements is correct ?
SEBI's 'Skin in the game rule' is applicable to which of the following financial intermediaries?
