Economics • Indian EconomyEasy
What is the primary mandate of the 'Securities and Exchange Board of India' (SEBI)?
A. To regulate the operations of public sector commercial banks and fix deposit interest rates
B. To protect the interests of investors in securities and to promote the development of, and regulate, the securities market✓ Correct Answer
C. To formulate monetary policy and manage foreign exchange reserves
D. To monitor fiscal federalism and recommend tax devolution shares for states
💡 Solution & Explanation
The Securities and Exchange Board of India was established under the SEBI Act of 1992 to protect investor interests and regulate capital markets. Functions such as monetary policy formulation belong exclusively to the Reserve Bank of India rather than market regulators. SEBI functions as a statutory regulatory body under the administrative control of the Ministry of Finance.
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