New Enroll for RBI, PFRDA & NABARD Intro Class! April 18 at 9:15 PM

    Question

    As per Reg 5 of SEBI (Prohibition of Fraudulent and

    Unfair Trade Practices Relating to Securities Market) Regulations, 2003, who has the authority to direct the "Investigating Authority" to investigate the affairs of intermediaries or persons associated with the securities market? 
    A The Chairman of the Board Correct Answer Incorrect Answer
    B Any member of the Board Correct Answer Incorrect Answer
    C The Executive Director of the Board Correct Answer Incorrect Answer
    D The appointing authority, which can be the Board, Chairman, member, or Executive Director Correct Answer Incorrect Answer
    E The Registrar of Companies Correct Answer Incorrect Answer

    Solution

    As per Reg 5-   Where Board,theChairman,the member or the Executive Director(hereinafter referred to as “appointing authority”) has reasonable ground to believe that— 9(a) the transactions in securities are being dealt within manner detrimental to the investors or the securities market in violation of these regulations;(b) anyintermediaryoranypersonassociatedwiththesecuritiesmarkethasviolatedany of the provisions of the Act or the rules or the regulations,itmay,at anytime by order in writing,direct any 32[person] (hereinafter referred to as the “Investigating Authority”)specified in the order to investigate the affairs of such intermediary or persons associated with the securities market or any other person and to report the re on to the Board in the manner provided in section 11C of the Act.

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