GK Quiz on SEBI

The development and prosperity of any country majorly depends on the economic system. This system in India is facilitated by a number of institutions, which help to regulate and manage the various aspects of the economy.  The securities market is one such vital sector. 

To ensure that the market continues running smoothly and fairly, there is a requirement of rules, transparency and regulation. 

As the Indian economy expanded due to more and more people taking investments, the need to have a strong regulatory body increased. 

This has led to development of a framework that protects investors in order to maintain market strength.

Today we will be testing your knowledge on one such regulatory body which is SEBI.

1. What was the year of establishing SEBI as a non-statutory body?

A. 1988

B. 1992

C. 1995

D. 2000

Answer: A. 1988

Explanation: SEBI was formed in 1988 after which it gained statutory authority.

2. When did SEBI become a statutory body?

A. 1988

B. 1990

C. 1992

D. 1994

Answer: C. 1992

Explanation: SEBI was accorded statutory power under SEBI Act, 1992.

3. What was the major development that increased the need to strengthen SEBI at the start of 1990s?

A. Kargil War

B. Harshad Mehta Scam

C. Demonetisation

D. LPG Reforms

Answer: B. Harshad Mehta Scam

Explanation: This 1992 scam revealed the vulnerabilities of the financial system and helped to increase regulation.

4. What is the location of SEBI headquarters?

A. New Delhi

B. Mumbai

C. Chennai

D. Kolkata

Answer: B. Mumbai

Explanation: SEBI has its headquarters at Mumbai which is the financial capital of India.

5. What is the act that controls SEBI?

A. RBI Act

B. Companies Act

C. SEBI Act

D. Banking Regulation Act

Answer: C. SEBI Act

Explanation: SEBI is governed through SEBI Act, 1992.

6. How many members are in SEBI board (including the chairman)?

A. 5

B. 7

C. 9

D. 11

Answer: C. 9

Explanation: The SEBI board is composed of chairman and other members that are chosen by the government.

7. Which Ministry does the appointment of the chairman of SEBI?

A. Ministry of Commerce

B. Ministry of Finance

C. Ministry of Corporate Affairs.

D. Prime Minister's Office

Answer: B. Ministry of Finance

Explanation: The Finance Ministry chooses the chairman of the SEBI.

8. What is one of the primary functions performed by SEBI?

A. Printing currency

B. Governing stock exchanges.

C. Managing fiscal policy

D. Issuing passports

Answer: B. Governing stock exchange

Explanation: SEBI manages the stock exchange in a manner to ensure fair trading practices.

9. In which year did SEBI get the power to regulate the mutual funds?

A. 1992

B. 1993

C. 1996

D. 2001

Answer: B. 1993

Explanation: SEBI was given the mandate of the mutual funds soon after it became statutory.

10. What is the full form of SEBI?

A. Securities Exchange board of India.

B. Securities and Exchange Board of India

C. Stock Exchange Board of India.

D. Securities Economic Board of India

Answer: B. The Securities and Exchange Board of India.

Explanation: SEBI stands for Securities and Exchange Board of India.