Multiple choice

Which of the following is not a function of the Securities and Exchange Board of India (SEBI)?

  1. Supervising the working of the Stock Exchanges

  2. Regulating merchant banks and Mutual finds

  3. Promoting the development of a healthy capital market

  4. Underwriting new capital issues
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

SEBI (Securities and Exchange Board of India) regulates India's securities markets but does NOT underwrite new capital issues. Underwriting is done by merchant bankers and financial institutions. SEBI's actual functions include supervising stock exchanges, regulating merchant banks and mutual funds, and promoting healthy capital markets. Option D correctly identifies the activity that is outside SEBI's mandate.

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