Topic: Indian Economy/Financial Markets
Q5. How does SEBI contribute to the regulation and development of fair and transparent markets in India while promoting corporate governance? (150 Words)
Difficulty level: Moderate
Reference: Indian Express
Why the question?
A year and a half after the explosive Hindenburg Report on Adani, the Indian regulator SEBI has accused the US-based short seller of malpractice.Key Demand of the question:
Evaluate SEBI’s contributions to market regulation, development, and corporate governance.
Structure of the Answer:
Introduction:
Overview of SEBI’s establishment and objectives.
Body:
Roles of SEBI: Issuers of securities, capital market players, financial intermediaries.
Regulatory Functions: Monitoring and guidelines for intermediaries, audits, and fees.
Protective Functions: Preventing fraud, investor education.
Development Functions: Training, promoting fair trading.
Corporate Governance: Enhancing investor confidence, enforcing compliance.
Conclusion:
Summary of SEBI’s impact and the need for continued improvements.
