Question

To recover the national loss suffered by small investors in the IPO allotment scam from the National Securities Depository Services Ltd, Central Depository Services Ltd, and eight depository participants, a second interim order was passed by

• A. SEBI
• B. RBI
• C. RBI
• D. Supreme Court

Answer 1

The Correct Option is A

The question pertains to a financial regulatory action involving recovery from multiple securities entities. The correct decision-making authority, as indicated, is SEBI.

Here's a step-by-step understanding:

• "IPO allotment scam" refers to a misuse of the initial public offering process, impacting small investors negatively.
• Entities involved are the National Securities Depository Services Ltd, Central Depository Services Ltd, and eight depository participants.
• The "second interim order" indicates ongoing regulatory actions taken to address and mitigate identified issues.
• Among the given options: SEBI (Securities and Exchange Board of India), RBI (Reserve Bank of India), and Supreme Court, the correct authority involved in securities market regulations and taking such an order is SEBI.

SEBI is tasked with protecting investor interests and regulating the securities market in India.