Which of the following committees is related to the investor protection?
N. K. Mitra Committee
Understanding Committees and Investor Protection
The question asks us to identify which among the given committees is related to investor protection. Different committees are often formed by regulatory bodies like SEBI (Securities and Exchange Board of India) or the government to look into specific aspects of the financial markets and provide recommendations.
Analyzing the Options and Committee Roles
Let's briefly look at the roles or focus areas typically associated with the committees listed in the options:
- Bhagwati Committee: This committee, chaired by Justice P.N. Bhagwati, was primarily related to the takeover code in India. Its recommendations were significant for regulating mergers, acquisitions, and takeovers to protect the interests of shareholders, particularly minority shareholders. While indirectly related to investor interests, its primary focus was takeovers.
- N. K. Mitra Committee: The N. K. Mitra Committee was constituted to examine issues related to the grievance redressal mechanism for investors in the securities market. Its mandate included suggesting ways to improve the process by which investors could get their complaints addressed effectively and efficiently. This directly relates to protecting investors by providing them with a channel to resolve disputes.
- J. R. Verma Committee: The J. R. Verma Committee is known for its recommendations related to risk management systems for stock exchanges and clearing corporations. Its work focused on improving the financial infrastructure and reducing systemic risk, which indirectly benefits investors by making the market safer, but its direct mandate wasn't investor protection grievance redressal.
- L. C. Gupta Committee: The L. C. Gupta Committee provided recommendations on various aspects of the capital market, including the development of derivatives trading in India and issues related to stock exchange management. Its focus was on market development and regulation structure, not primarily investor grievance redressal.
Identifying the Investor Protection Committee
Based on the typical mandates of these committees, the N. K. Mitra Committee is directly linked to the mechanism for protecting investors by addressing their grievances. Improving grievance redressal is a crucial part of ensuring investor protection and building confidence in the market.
| Committee | Primary Focus | Relation to Investor Protection |
|---|---|---|
| Bhagwati Committee | Takeover Code | Indirect (protecting shareholders during takeovers) |
| N. K. Mitra Committee | Investor Grievance Redressal | Direct (improving mechanisms for resolving investor complaints) |
| J. R. Verma Committee | Risk Management in Exchanges/Clearing Corporations | Indirect (systemic risk reduction) |
| L. C. Gupta Committee | Capital Market Structure, Derivatives | Indirect (market development and regulation) |
The N. K. Mitra Committee's work specifically targeted improving the process by which investors could seek resolution for their issues, making it a committee strongly related to investor protection through robust grievance handling.
Revision Table: Committees and Functions
| Committee Name | Area of Recommendation |
|---|---|
| Bhagwati Committee | Takeover Regulations |
| N. K. Mitra Committee | Investor Grievance Redressal |
| J. R. Verma Committee | Risk Management Systems |
| L. C. Gupta Committee | Capital Market Structure, Derivatives |
Additional Information: Investor Protection in India
Investor protection is a vital function of market regulators like SEBI in India. It involves several aspects:
- Ensuring fair market practices and preventing fraud.
- Providing transparent information to investors.
- Establishing mechanisms for grievance redressal.
- Educating investors about their rights and risks.
- Regulating intermediaries (brokers, advisors) to maintain standards.
Committees like the N. K. Mitra Committee play a role by reviewing existing mechanisms and suggesting improvements to strengthen this protective framework.
Important Questions from Corporate governance and business ethics
Corporations are controlled and directed by which one of the following?
As per the Anglo-Saxon Model of Corporate Governance, the authority lies with the following. Arrange these in decreasing order of authority.
A. Board of Directors
B. Managers
C. Shareholders
D. Employees (Company)
E. Trade unions
Choose the correct sequence from the options given below
Assertion (A) : Corporate governance is an important instrument of investor protection.
Reason (R) : Strong corporate governance is indispensable to resilient and vibrant capital markets.
Which one of the following options is correct?
Which among the following is not a correct statement with regard to Corporate Governance in India ?
List out from the given statements the important ethical principles that a business should follow:
a) To take the necessary action for the development of the concerned industry or business.
b) Pay taxes and discharge other obligations promptly.
c) To ensure the best utilisation of the human resources.
d) Refrain from secret kickbacks or pay-offs to customers, suppliers, administrators, etc.
e) Ensure payment of fair wages and fair treatment of employees.
Choose the correct answer from the options given below:
