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It was establi… (Class 12 Business Studies SQP 2024-25, Q31)

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Business StudiesCBSE Class 12 · Sample paper, session 2024-25 · 6 marks · Case-based

CBSE Class 12 Business Studies sample paper 2024-25: question 31

From the official CBSE sample question paper for 2024-25, section D, question 31, for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q31 · 6 marks · Case-basedCompetency-basedFinancial Markets

It was established by the Government of India on 12 April 1988 as an interim administrative body to promote orderly and healthy growth of the securities market and for investor protection. It was given statutory status in 1992 through an Act of Parliament.

  1. (I)

    Identify the regulatory body which has been highlighted above.

    1 mark
  2. (II)

    State the three objectives of the regulatory body identified in part (I).

    3 marks
  3. (III)

    State any two functions that are performed for the development of the securities market by the regulatory body identified in part (I).

    2 marks

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2024-25.

Hints

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

Hint 1

Which body regulates the securities market in India?

Hint 2

Developmental functions build the market; protective ones guard investors.

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. (I) Securities and Exchange Board of India (SEBI), set up in 1988 and given statutory status in 1992.

    1 mark

  2. (II) Regulate stock exchanges and the securities industry: To promote their orderly functioning.

    1 mark

  3. Protect investors: To protect the rights and interests of investors, particularly individual investors, and to guide and educate them.

    1 mark

  4. Prevent trading malpractices: To prevent malpractices and balance self-regulation by the industry with statutory regulation. (Also: a code of conduct and fair practices for intermediaries.)

    1 mark

  5. (III) Training of intermediaries: Training intermediaries of the securities market.

    1 mark

  6. Research and publishing: Conducting research and publishing information useful to all market participants. (Also: measures to develop capital markets with a flexible approach.)

    1 mark

Answer: (I) SEBI. (II) Regulate stock exchanges, protect investors, prevent malpractices. (III) Training intermediaries and research and publication.

Where the marks are

  • (I) Identification (1)
  • (II) Three objectives: 1 mark each
  • (III) Two developmental functions: 1 mark each

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 2024-25: 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.