Question

Which of the following is not a function of Securities and Exchange Board of India (SEBI)?

• A. Registration of brokers and sub-brokers and other players in the market
• B. Training of intermediaries of the securities market
• C. Controlling insider trading
• D. Pricing of securities

Hint:

Remember:

• SEBI $\rightarrow$ Regulates and protects the securities market
• Controls insider trading and registers intermediaries
• Does not fix security prices directly

Answer 1

The Correct Option is D

Concept: The Securities and Exchange Board of India (SEBI) is the regulatory authority for the securities market in India. It protects the interests of investors and regulates the functioning of the stock market. Major functions of SEBI include:

• Registration of brokers and intermediaries
• Prevention of unfair trade practices
• Controlling insider trading
• Investor protection and market regulation
• Training and regulating market intermediaries

Step 1: Examine Option (A). SEBI registers and regulates:

• Brokers
• Sub-brokers
• Merchant bankers
• Other market intermediaries

Hence, this is a function of SEBI.

Step 2: Examine Option (B). SEBI promotes training and education of intermediaries in the securities market. Hence, this is also a function of SEBI.

Step 3: Examine Option (C). SEBI takes measures to prevent and control insider trading to maintain fairness in the market. Hence, this is a function of SEBI.

Step 4: Examine Option (D). SEBI does not directly determine or fix the pricing of securities. Prices of securities are generally determined by:

• Demand and supply forces
• Market conditions
• Investor behavior

Therefore, pricing of securities is not a direct function of SEBI. Hence, the correct answer is: \[ \boxed{\text{Pricing of securities}} \]