1.

How does the SEBI exercise control over ‘R’ Limited in the interest of investors?

Answer»

SEBI will exercise control over ‘R’ Limited by the following methods. 

a. Prohibiting fraudulent and unfair trade practices In the securities market, unfair trade practices include price rigging, making misleading statements etc. 

b. Prohibiting insider trading i.e., restricts the persons having access to price-sensitive information about the company to take undue advantage of it. 

c. Examing that adequate disclosure about the terms and conditions of redemption, security conversion and other relevant features of the new Instrument at the time of issue is made so that an investor can make a reasonable determination of risks returns, safety, and liquidity of the instrument.

Case Problem II 

                             NSI Indices

IndexCurrentpervious% Change
S & P CNX Nifty
CNX Nifty Junior
CNX IT
Bank Nifty
CNX 100		3641.1
6458.55
5100.5
5039.05
3519.35		3770.55
6634.85
5314.05
5215.05
3640.35		-3.43 %
-2.66 %
-4.02 %
-40.5 %
-3.32 %

                             World markets

IndexCurrentPrevious% Change
NYSE Composite
NASDAQ Composite
DOW jones IA
S & P 500
NIkkei 225		8925.8
2350.57
12076
1377.95
16676.9		9120.93
2402.29
12318.6
1406.6
17178.8		-2.13 %
-2.15 %
-1.97 %
-2.04 %
-2.92 %

 

The above figures are taken from the website of National Stock Exchange of India. They illustrate the movement of NSE stock indices as well as world stock indices on the date indicated.


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