Skip to content

Give any… (Class 12 Business Studies SQP 2025-26, Q23B)

questionbuddy.in/q/cbse-12-business-studies-2025-26-sqp-q23b-give-protective-functions-performed-securities

Business StudiesCBSE Class 12 · Sample paper, session 2025-26 · 3 marks · Short answer

CBSE Class 12 Business Studies sample paper 2025-26: question 23(B)

From the official CBSE sample question paper for 2025-26, section B, question 23(B), for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q23(B) · 3 marks · Short answerFinancial Markets

Give any three protective functions performed by Securities and Exchange Board of India.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

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

Hint 1

Protective functions guard investors against what?

Hint 2

Think of price rigging and insider trading.

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. Prohibition of fraudulent and unfair trade practices: SEBI prohibits misleading statements, manipulation and price rigging in the securities market.

    1 mark

  2. Controlling insider trading: It checks insider trading and imposes penalties for it.

    1 mark

  3. Promotion of fair practices and code of conduct: It promotes fair practices and a code of conduct in the securities market. (Also: steps for investor protection, e.g. investor education.)

    1 mark

Answer: SEBI's protective functions include prohibiting fraudulent and unfair trade practices, controlling insider trading and promoting fair practices (also investor protection).

Where the marks are

  • Any three protective 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 2025-26: 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.