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    Question

    Which of the following actions can SEBI take to regulate

    capital markets and protect investors? Imposing restrictions on insider trading and unfair trade practices.   Regulating the entry of Foreign Institutional Investors (FIIs) into Indian stock markets.   Penalizing stockbrokers and market participants for engaging in fraudulent activities.
    A 1 and 2 only Correct Answer Incorrect Answer
    B 2 and 3 only Correct Answer Incorrect Answer
    C 1 and 3 only Correct Answer Incorrect Answer
    D 1, 2, and 3 Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Explanation:  

    • Insider trading can manipulate stock prices, and SEBI has strict regulations to prevent it.  
    • Foreign Institutional Investors (FIIs) bring foreign capital into Indian markets, but SEBI sets rules to control their participation.  
    • SEBI penalizes stockbrokers and companies engaging in fraud, misleading investors, or market manipulation.  

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