Read the following statements : Assertion (A) and Reason (R). Assertion (A) : The investing public gets a safe and fair deal on the stock market. Reason (R) : The membership of stock exchange is well regulated and its dealings are well defined according to the existing legal framework. Choose the correct alternative :
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The Stock Exchange operates under the watchful eye of SEBI, which ensures that the rules (Reason) lead to investor safety (Assertion).
Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are incorrect.
Assertion (A) is correct, but Reason (R) is incorrect.
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The Correct Option isA
Solution and Explanation
Step 1: Understanding the Concept:
One of the primary functions of a Stock Exchange is "Safety of Transactions." This ensures that investors are not cheated. Step 2: Detailed Explanation:
The Assertion (A) is true because stock exchanges provide a regulated platform for trading. The Reason (R) explains \textit{why} it is safe: because the legal framework and exchange rules strictly regulate members and their dealings. Since (R) provides the underlying cause for (A), it is the correct explanation. Step 3: Final Answer:
The correct alternative is (a).
