Which of the following is incorrect regarding Securities and Exchange Board of India (SEBI)?

Question

1 Answer

answered Mar 2, 2022 by ShreeHarpale (240k points)
selected Mar 2, 2022 by PrashantPandey

Best answer

Correct Answer - Option 3 : It does not act as a civil court.

The correct answer is It does not act as a civil court.

The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
- Before SEBI came into existence, the Controller of Capital Issues was the regulatory authority.
- Initially, SEBI was a non-statutory body without any statutory power.
- It became autonomous and given statutory powers by the SEBI Act 1992.
SEBI is a quasi-legislative and quasi-judicial body that can draft regulations, conduct inquiries, pass rulings, and impose penalties.
SEBI Chairman has the authority to order "search and seizure operations".
It also works for promoting and regulating self-regulatory organizations and prohibiting fraudulent and unfair trade practices relating to securities markets.
SEBI performs the function of registration and regulation of the working of venture capital funds and collective investment schemes including mutual funds.
Securities Appellate Tribunal (SAT) is a statutory body established under the provisions of the Securities and Exchange Board of India Act, 1992.
- Securities Appellate Tribunal (SAT) has been constituted to protect the interest of entities that feel aggrieved by SEBI’s decision.
The headquarters of SEBI is situated in Mumbai.
It has the power to act as a civil court.
- If any person feels aggrieved by the SAT’s decision or order can appeal to the Supreme Court.