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Published on: 16/10/2019
Securities Exchange Board of India (SEBI)
Download Tamil Nadu 12th Standard Commerce question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.
Questions + Answers key
Take MCQ Commerce Test1.
Where is the headquarter of the SEBI?
Delhi
Bengalure
Chennai
Mumbai
2.
Number of recognised stock exchange in India
2
21
22
24
3.
SEBI is an apex body that maintains and regulates our
capital market
mutual funds
share capital
none of these
4.
Securities and exchange Board of India was first established in the year
1980
1986
1988
1990
5.
PAN stands for ______
Permanent Amount Number
Primary Account Number
Permanent Account Number
Permanent Account Nominee
6.
_____ was the first company to trade its shares in Demat form.
Tata Industries
Reliance Industries
Infosys
Birla Industries
7.
The process of converting physical shares into electronic form is called _____
Dematerialisation
Delisting
Materialisation
Debarring
8.
9.
10.
Securities Exchange Board of India was first established in the year _______
1988
1992
1995
1998
11.
What are the various ID proofs?
12.
What is Demat account?
13.
Write a short notes on SEBI.
14.
Draw the organization structure of SEBI.
15.
What is the power of SEBI under Securities Contract Act?
16.
What is meant by Dematerialization?
17.
What are the objectives of SEBI?
18.
What are the benefits of Dematerialisation?
19.
What are the functions of SEBI? (any 5)
1.
(d)
Mumbai
2.
(b)
21
3.
(a)
capital market
4.
(c)
1988
5.
(c)
Permanent Account Number
6.
(b)
Reliance Industries
7.
(a)
Dematerialisation
8.
(a)
9.
(b)
10.
(a)
1988
11.
PAN card,Voters ID, Passport, Drivers license, Bank attestation,IT returns, electricity bill, telephone bill,ID cards with applicants photo issued by the central or state governmnent and its departments are the various ID proofs.
12.
(i) A demat account holds all the shares that are purchased in electronic or dematerialized form.
(ii) Like the bank account, a demat account holds the certificates of financial instruments like,shares, bonds, government securities, mutual funds and exchange traded funds (ETFs).
13.
(i) SEBI means Securities Exchange Board ofIndia.
(ii) It is an apex body that maintains and regulates our capital market.
(iii) It was established in 1988 by Indian government but got a statutory powers in 1992.
14.
Organization Structure of SEBI

15.
(i) For effective regulation of stock exchange, the Ministry of Finance issued a Notification on 13 September, 1994 delegating several of its powers under the Securities Contract (Regulations) Act to SEBI.
(ii) SEBI is also empowered by the Finance Ministry to nominate three members on the Governing Body of every stock exchange.
16.
(i)Dematerialization is the process by which physical share certificates of an investor are taken back by the company/registrar destroyed.
(ii)Dematerialization is done at the request of the investor. Investors will first have to open an account with a DP (Depository Participant) and then request for dematerialization of certificates through the DP.
(iii)Purchases made by an investor are credited to his account and sales are debited. All the holdings of a particular security will be identical and interchangeable.
(iv)Trading in dematerialized shares commenced on the NSE in December, 1996, where Reliance Industries was the first company to trade its 100 shares in demat form.
17.
(i) Regulation of Stock Exchanges
The first objective of SEBI is to regulate stock exchanges so that efficient services may be provided to all the parties operating there.
(ii) Protection to the Investors
(a) The capital market is meaningless in the absence of the investors.
(b) The protection of the interests of the investors means protecting them from the wrong information given by the companies in their prospectus, reducing the risk of delivery and payment, etc.
(iii) Checking the Insider Trading
(a) Insider trading means the buying and selling of securities by directors Promoters, etc.
(b) Who have access to some confidential information about the company and who wish to take advantage of this confidential information.
(c) This affects the interests of the general investors and is essential to check this tendency.
(iv) Control over Brokers
(a) It is important to supervise/ check the activities of the brokers and other middlemen in order to control the capital market.
(b) To regulate their activities, it was necessary to establish the SEBI.
18.
(i) The lack of paperwork enables quicker transactions and higher efficiency in trading
(ii) The risks pertaining to physical certificates like loss, theft, forgery and damage are eliminated completely with a DEMAT account.
(iii) Trading has become more convenient as one can trade through computers at any location, without the need of visiting a broker.
(iv) Certain banks also permit holding of both equity and debt securities in a single account.
(v) Banks also provide dedicated and trained customer care officers to assist through all the procedures.
(vi) One can also choose to take a loan against securities which are held in a DEMAT account by offering it as a collateral to the lender.
19.
The functions of SEBI are as follows:
(i) Safeguarding the interests of investors by means of adequate education and guidance.
(ii) Regulating and controlling the business on stock markets.
(iii) Conduct inspection and inquiries of stock exchanges, intermediaries and self-regulating organisations and to take appropriate measures wherever required.
(iv) Barring insider trading in securities.
(v) Prohibiting deceptive and unfair methods used by financial intermediaries operating in securities markets.
(vi) SEBI Issues Guidelines and instructions to businesses concerning capital issues.
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Tamilnadu Stateboard 12th Standard Subjects

Maths

Chemistry

Physics

Biology

Computer Science

Business Maths and Statistics

Economics

Commerce

Accountancy

History

Computer Applications

Biology

Computer Technology

Computer Applications

Computer Science

Business Maths and Statistics

Commerce

Economics

Maths

Chemistry

Physics

Computer Technology

History

Accountancy

Tamil

English

French
Tamilnadu Stateboard Standards