Question

State any three development functions of Securities and Exchange Board of India (SEBI).

Hint:

Development functions are about "Growth" and "Education." They help the market evolve and become more modern.

Answer 1

Step 1: Understanding the Concept:
SEBI performs three types of functions: Protective, Regulatory, and Development. Development functions aim at increasing the efficiency and reach of the securities market.
Step 2: Detailed Explanation:
1. Training of Intermediaries: SEBI promotes the training of various intermediaries of the securities market (like brokers and sub-brokers) to ensure professional service.
2. Conducting Research: It conducts research and publishes information useful to all market participants to help them make informed decisions.
3. Promoting Fair Practices: SEBI takes measures to develop the capital market by adapting a flexible approach, such as permitting internet trading through registered stockbrokers.
Step 3: Final Answer:
The development functions focus on training, research, and modernizing the market infrastructure.