Question

Legally SEBI was established in:

• A. 1988
• B. 1990
• C. 1992
• D. 1994

Hint:

SEBI was set up in 1988, but it became a statutory body under the SEBI Act in 1992.

Answer 1

The Correct Option is C

Step 1: Understanding SEBI.
The Securities and Exchange Board of India (SEBI) is the regulatory body for the securities market in India. It was initially set up in 1988 as a non-statutory body.

Step 2: Legal establishment.
SEBI was given statutory powers through the SEBI Act, 1992, passed by the Indian Parliament. This marked its legal establishment as an autonomous regulator.

Step 3: Analysis of options.
- (A) 1988: SEBI was set up, but only as a non-statutory body.
- (B) 1990: Incorrect, SEBI was not legally established in this year.
- (C) 1992: Correct, SEBI was legally established by the SEBI Act, 1992.
- (D) 1994: Incorrect, SEBI had already become statutory by then.

Step 4: Conclusion.
The correct answer is (C) 1992, when SEBI was legally established.