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SEBI calls for… (Class 12 Business Studies SQP 2023-24, Q5)

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Business StudiesCBSE Class 12 · Sample paper, session 2023-24 · 1 mark · MCQ

CBSE Class 12 Business Studies sample paper 2023-24: question 5

From the official CBSE sample question paper for 2023-24, section A, question 5, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q5 · 1 mark · MCQCompetency-basedFinancial Markets

SEBI calls for information and issues a show cause notice to stock exchange and its officials seeking explanation and conducting audit and enquiry. Which function is SEBI performing?

  1. (A)Regulatory function
  2. (B)Development function
  3. (C)Protective function
  4. (D)Both a) and c)

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2023-24.

Hints

Open one hint at a time and try again before the next.

Hint 1

Is SEBI training, protecting investors or supervising here?

Hint 2

Audits and enquiries are a regulator's tools.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Calling for information, issuing show-cause notices and conducting audits and enquiries of stock exchanges are means of supervising them.

  2. These are SEBI's regulatory functions (registering, supervising and inspecting intermediaries and exchanges). Option (A).

    1 mark

Answer: (A) Regulatory function

Where the marks are

  • Inspection and enquiry of exchanges (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Financial Markets, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2023-24: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.