Question:

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

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Remember: Regulatory functions "police" the market. Development functions "grow and educate" the market.
Updated On: Jun 25, 2026
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Correct Answer: 3

Solution and Explanation

Step 1: Concept
Development Functions of SEBI.

Step 2: Meaning
SEBI performs specific functions designed to promote the growth, modernization, and education of the securities market and its participants.

Step 3: Analysis

Training of Intermediaries: SEBI promotes the training of intermediaries of the securities market (like brokers and sub-brokers) to ensure healthy market practices and professionalism.

Research and Publication: SEBI conducts research and publishes useful information and data to help all market participants (investors, companies, and intermediaries) make informed decisions.

Adopting Flexible Approaches: SEBI undertakes measures to develop the capital markets by adopting a flexible approach, such as permitting internet trading through registered stock brokers and allowing initial public offerings (IPOs) in the primary market through stock exchanges.


Step 4: Conclusion
These developmental steps are crucial for expanding the market's reach and ensuring that the infrastructure remains modern and efficient.

Final Answer: 1. Training intermediaries, 2. Research and publication, 3. Adopting flexible approaches.
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