Question

Which of the following is NOT a function of SEBI?

• A. Registration of Brokers and Sub Brokers
• B. Protecting Investor Training
• C. Undertaking Steps for Investor Protection
• D. Undertaking steps to develop the Capital Markets by adapting a flexible approach

Hint:

Main Functions of SEBI:

• Regulates stock exchanges
• Protects investor interests
• Prevents unfair trade practices
• Registers intermediaries
• Develops the securities market

SEBI Motto: \[ \text{``Protect the interests of investors and regulate the securities market.''} \]

Answer 1

The Correct Option is B

Concept:
SEBI stands for Securities and Exchange Board of India. It is the regulatory authority established by the Government of India to regulate and supervise the securities market in India. SEBI was established in 1988 and was given statutory powers in 1992 through the SEBI Act. The main objectives of SEBI are:

• Protection of investors
• Development of securities market
• Regulation of capital market intermediaries

SEBI plays a very important role in maintaining transparency, fairness, and efficiency in the capital market.

Step 1: Analyzing Option (A).
Option (A) states: \[ \text{Registration of Brokers and Sub Brokers} \] One of the major functions of SEBI is to regulate market intermediaries such as:

• Brokers
• Sub-brokers
• Merchant bankers
• Portfolio managers
• Underwriters

SEBI grants registration and ensures that these intermediaries follow proper rules and ethical practices. Therefore, option (A) is a correct function of SEBI.

Step 2: Analyzing Option (B).
Option (B) states: \[ \text{Protecting Investor Training} \] This statement is incorrect and improperly framed. SEBI conducts:

• Investor education
• Investor awareness programmes
• Investor protection measures

However, the phrase “Protecting Investor Training” is not recognized as a formal or valid function of SEBI. Thus, this option does not correctly represent any actual SEBI function. Hence, option (B) is NOT a function of SEBI.

Step 3: Analyzing Option (C).
Option (C) states: \[ \text{Undertaking Steps for Investor Protection} \] Investor protection is one of the primary objectives of SEBI. SEBI protects investors by:

• Preventing fraudulent practices
• Ensuring fair trading
• Maintaining transparency
• Regulating insider trading

Therefore, option (C) correctly represents a function of SEBI.

Step 4: Analyzing Option (D).
Option (D) states: \[ \text{Undertaking steps to develop the Capital Markets by adapting a flexible approach} \] SEBI is responsible for the development and regulation of the capital market. It continuously introduces reforms and flexible policies to improve:

• Market efficiency
• Transparency
• Investor confidence
• Technological advancement

Thus, option (D) is also a valid function of SEBI.

Step 5: Final conclusion.
Among all the given options, the statement that does NOT correctly represent a function of SEBI is: \[ \boxed{\text{(B) Protecting Investor Training}} \]