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Which of the following statements about SEBI's powers is correct?

medium Q8 of 15
Financial Awareness - Risk, Stability & Emerging Finance
Which of the following statements about SEBI's powers is correct?
ASEBI can print currency notes
BSEBI can impose penalties for insider trading
CSEBI manages the country's foreign exchange reserves
DSEBI regulates the insurance sector
Step-by-Step Solution
  1. Step 1: Understand SEBI's regulatory powers

    SEBI has the authority to investigate and penalize insider trading and other malpractices in securities markets.
  2. Step 2: Eliminate unrelated powers

    Printing currency is RBI's function; managing forex reserves is RBI's role; insurance regulation is IRDAI's responsibility.
  3. Final Answer:

    SEBI can impose penalties for insider trading → Option B
  4. Quick Check:

    SEBI powers = penalize insider trading ✅
Quick Trick: SEBI enforces market integrity by penalizing insider trading.
Common Mistakes:
  • Confusing SEBI's role with RBI or IRDAI functions.
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