Chapter Exam

Chapter 8: Securities Exchange Board of India (SEBI) — Online MCQ Test

Q: What does SEBI stand for?

Answer: A. Securities and Exchange Board of India — SEBI stands for Securities and Exchange Board of India. It is the regulator of the securities market in India.

Q: In which year was SEBI given statutory status by the Government of India?

Answer: B. 1992 — SEBI was established in 1988 and given statutory powers through the SEBI Act, 1992. Hence, 1992 is the correct year.

Q: SEBI was initially set up as a(n):

Answer: A. Statutory body — SEBI later received statutory status under the SEBI Act, 1992. It functions as a statutory regulatory authority.

COMMERCE · CLASS 12th · Tamil Nadu State Board

Practice Chapter 8: Securities Exchange Board of India (SEBI) with a free chapter-wise online MCQ test for Tamil Nadu State Board CLASS 12th COMMERCE. This chapter covers: This chapter examines capital market regulation through SEBI. Students learn SEBI setup objectives regulatory functions statutory powers dematerialization mechanics and benefits of.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 8: Securities Exchange Board of India (SEBI) — Important Questions & Answers (FAQ)

Frequently asked questions from Tamil Nadu State Board CLASS 12th COMMERCE — Chapter 8: Securities Exchange Board of India (SEBI), with answers and explanations. These are sample questions; the exam has its own separate question set.

What does SEBI stand for?

A. Securities and Exchange Board of India ✓
B. Stock and Equity Board of India
C. Savings and Economic Board of India
D. Securities and Export Board of India

Answer: A. Securities and Exchange Board of India
SEBI stands for Securities and Exchange Board of India. It is the regulator of the securities market in India.

In which year was SEBI given statutory status by the Government of India?

A. 1988
B. 1992 ✓
C. 1995
D. 2000

Answer: B. 1992
SEBI was established in 1988 and given statutory powers through the SEBI Act, 1992. Hence, 1992 is the correct year.

SEBI was initially set up as a(n):

A. Statutory body ✓
B. Constitutional body
C. Advisory committee
D. Private company

Answer: A. Statutory body
SEBI later received statutory status under the SEBI Act, 1992. It functions as a statutory regulatory authority.

A shareholder has electronic shares in a demat account. If the shares are to be transferred, what happens generally?

A. Physical certificates must be signed and posted
B. Transfer takes place electronically through the depository system ✓
C. The shareholder must visit the stock exchange counter
D. The company must issue fresh paper certificates first

Answer: B. Transfer takes place electronically through the depository system
In dematerialized form, securities are transferred electronically through the depository system. This makes trading faster and paperless.

A student says, 'Dematerialization is helpful because it removes the need for all financial intermediaries.' Which is the best response?

A. Correct, because all intermediaries disappear in demat trading
B. Incorrect, because depositories and participants are still needed in the system ✓
C. Correct, because SEBI itself acts as the only intermediary
D. Incorrect, because demat applies only to bank deposits

Answer: B. Incorrect, because depositories and participants are still needed in the system
Dematerialization reduces paperwork, but the system still operates through depositories and depository participants. Intermediaries are not completely removed.

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