Role of SEBI / SEC MCQs

1. SEBI stands for:
(A) Securities and Exchange Board of India
(B) Stock Exchange Board of India
(C) Securities Evaluation Board of India
(D) Securities and Equity Board of India

2. The U.S. SEC stands for:
(A) Securities and Exchange Commission
(B) Stock Exchange Commission
(C) Securities Evaluation Council
(D) Securities Enforcement Council

3. SEBI was established in which year?
(A) 1988
(B) 1991
(C) 1992
(D) 1995

4. SEBI became a statutory body in:
(A) 1988
(B) 1992
(C) 1995
(D) 2000

5. Which Act gave statutory powers to SEBI?
(A) Companies Act, 1956
(B) SEBI Act, 1992
(C) Securities Act, 1934
(D) Banking Act, 1949

6. Headquarters of SEBI is located at:
(A) Delhi
(B) Mumbai
(C) Kolkata
(D) Chennai

7. Headquarters of the U.S. SEC is located at:
(A) New York
(B) Washington, D.C.
(C) Chicago
(D) Boston

8. The main objective of SEBI is:
(A) To protect investors’ interests
(B) To increase government revenue
(C) To regulate foreign trade
(D) To control inflation

9. The main objective of SEC is:
(A) Regulate securities markets in the U.S.
(B) Control taxation in the U.S.
(C) Manage international trade
(D) Control interest rates

10. SEBI regulates:
(A) Stock exchanges in India
(B) Commodity markets only
(C) Real estate market
(D) Banking sector

11. SEC regulates:
(A) U.S. securities markets
(B) World Bank operations
(C) IMF policies
(D) International trade deals

12. The chairman of SEBI is appointed by:
(A) President of India
(B) Government of India
(C) RBI
(D) Finance Commission

13. SEBI protects investors by:
(A) Regulating brokers and stock exchanges
(B) Fixing share prices
(C) Providing loans to companies
(D) Controlling inflation

14. The SEC was established in the U.S. in:
(A) 1929
(B) 1934
(C) 1945
(D) 1950

15. Which Act created the SEC?
(A) Securities Act of 1933
(B) Securities Exchange Act of 1934
(C) Investment Company Act of 1940
(D) Sarbanes-Oxley Act

16. SEBI ensures:
(A) Fair practices in the securities market
(B) Free electricity to companies
(C) Higher taxation on profits
(D) Fixed dividend payments

17. The SEC requires listed companies to:
(A) Disclose financial information to the public
(B) Pay fixed dividends
(C) Invest in government bonds
(D) Reduce debt

18. SEBI regulates which type of investors?
(A) Institutional investors
(B) Retail investors
(C) Foreign investors
(D) All of the above

19. Insider trading in India is prohibited by:
(A) RBI Act
(B) SEBI regulations
(C) Companies Act
(D) Income Tax Act

20. Insider trading in the U.S. is prohibited by:
(A) SEC regulations
(B) Federal Reserve rules
(C) IMF guidelines
(D) World Bank rules

21. Which of the following is a function of SEBI?
(A) Regulating stock exchanges
(B) Promoting investor education
(C) Monitoring intermediaries
(D) All of the above

22. The SEC enforces:
(A) Securities laws in the U.S.
(B) International labor laws
(C) Foreign trade agreements
(D) Environmental standards

23. SEBI has the power to:
(A) Impose penalties on violators
(B) Suspend stockbrokers
(C) Cancel registrations
(D) All of the above

24. SEC filings such as Form 10-K and Form 10-Q are related to:
(A) Financial disclosures of U.S. companies
(B) Tax returns
(C) Loan applications
(D) Dividend declarations

25. Which body regulates mutual funds in India?
(A) SEBI
(B) RBI
(C) IRDAI
(D) Ministry of Finance

26. Which body regulates mutual funds in the U.S.?
(A) Federal Reserve
(B) SEC
(C) World Bank
(D) IMF

27. SEBI has how many regional offices?
(A) 2
(B) 3
(C) 4
(D) 5

28. Which division of SEC reviews financial statements of public companies?
(A) Division of Enforcement
(B) Division of Corporation Finance
(C) Division of Investment Management
(D) Division of Trading and Markets

29. SEBI monitors:
(A) Credit rating agencies
(B) Stock brokers
(C) Depositories
(D) All of the above

30. SEC monitors:
(A) Broker-dealers
(B) Investment advisors
(C) Stock exchanges in the U.S.
(D) All of the above

31. SEBI regulates IPOs by:
(A) Approving draft prospectus
(B) Ensuring disclosures
(C) Monitoring allotment process
(D) All of the above

32. The SEC’s primary mission is to:
(A) Protect investors and maintain fair markets
(B) Control U.S. banking policies
(C) Promote exports
(D) Reduce inflation

33. SEBI regulates collective investment schemes to:
(A) Prevent fraud
(B) Encourage fair returns
(C) Protect small investors
(D) All of the above

34. The SEC enforces laws such as:
(A) Securities Act of 1933
(B) Investment Advisers Act of 1940
(C) Sarbanes-Oxley Act of 2002
(D) All of the above

35. SEBI issues guidelines for:
(A) Listing of companies
(B) Disclosure norms
(C) Corporate governance
(D) All of the above

36. SEC registration is required for:
(A) Publicly traded companies in the U.S.
(B) Banks only
(C) Private firms only
(D) Nonprofit organizations

37. SEBI promotes transparency by:
(A) Requiring companies to disclose material facts
(B) Hiding company financials
(C) Fixing share prices
(D) Restricting foreign investors

38. SEC promotes transparency by:
(A) Mandating regular filings
(B) Requiring truthful disclosures
(C) Preventing insider trading
(D) All of the above

39. SEBI also regulates:
(A) Venture capital funds
(B) Alternative investment funds
(C) Derivatives market
(D) All of the above

40. SEC also regulates:
(A) Derivatives
(B) Mutual funds
(C) Securities exchanges
(D) All of the above

41. SEBI guidelines help in:
(A) Protecting minority shareholders
(B) Improving corporate governance
(C) Reducing unfair trade practices
(D) All of the above

42. SEC was created in response to:
(A) The Great Depression and 1929 stock market crash
(B) World War I
(C) Oil crisis
(D) Dot-com bubble

43. Which of the following comes under SEBI’s purview?
(A) Credit rating agencies
(B) Depositories like NSDL and CDSL
(C) Foreign portfolio investors
(D) All of the above

44. Which of the following comes under SEC’s purview?
(A) Investment advisers
(B) Broker-dealers
(C) Public companies
(D) All of the above

45. SEBI’s ultimate purpose is:
(A) Investor protection
(B) Market efficiency
(C) Regulation of intermediaries
(D) All of the above

46. SEC’s ultimate purpose is:
(A) Protect investors
(B) Maintain fair, orderly markets
(C) Facilitate capital formation
(D) All of the above

47. SEBI has quasi-judicial powers to:
(A) Pass rulings and orders against violators
(B) Control inflation
(C) Frame banking policies
(D) Set tax rates

48. The SEC can:
(A) File civil enforcement actions
(B) Refer cases for criminal prosecution
(C) Impose penalties on violators
(D) All of the above

49. SEBI also promotes:
(A) Investor education and awareness
(B) Political campaigns
(C) Agricultural subsidies
(D) Banking reforms

50. SEC also promotes:
(A) Investor confidence in U.S. markets
(B) Higher import duties
(C) International trade policies
(D) Inflation control