1) Which of the following statements is/are correct about SEBI?
1. The chairman of SEBI is nominated by RBI.
2. SEBI performs legislative and executive roles only.
a. Only 1
b. Only 2
c. Both
d. None
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Answer
Explanation
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ANSWER: Only 1
Explanation:
- SEBI has three functions rolled into one body: quasi-legislative, quasi-judicial and quasi-executive.
- It drafts regulations in its legislative capacity.
- It conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity.
- Though this makes it very powerful, there is an appeal process to create accountability.
- There is a Securities Appellate Tribunal which is a three-member tribunal and is headed by Mr. Justice J P Devadhar, a former judge of the Bombay High Court. A second appeal lies directly to the Supreme Court.
The SEBI is managed by its members, which consists of following:
1. The chairman - nominated by Union Government of India.
2. Two members, i.e., Officers from Union Finance Ministry.
3. One member from the Reserve Bank of India.
4. The remaining five members are nominated by Union Government of India, out of them at least three shall be whole-time members.
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2) Which of the following are responsibilities of the Financial Stability and Development Council?
1) Inter-Regulatory Coordination
2) Financial Sector Development
3) Financial Literacy
a. 1, 2
b. 1, 3
c. 2, 3
d. All of the above
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Answer
Explanation
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ANSWER: All of the above
Explanation:
The functions and responsibilities are - - Financial Stability
- Financial Sector Development
- Inter-Regulatory Coordination
- Financial Literacy
- Financial Inclusion
- Macro prudential supervision of the economy including the functioning of large financial conglomerates
- Coordinating India's international interface with financial sector bodies like the Financial Action Task Force (FATF), Financial Stability Board (FSB)and any such body as may be decided by the Finance Minister from time to time.
- The institutional structure for India’s Financial Inclusion/ Literacy programme is unique as it has an apex body in the Financial Stability and Development Council (FSDC), headed by the Finance Minister of Government of India, mandated, inter alia, to focus on attaining financial inclusion/ literacy goals.
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3) IRDA was formed on recommendation of
a. Malhotra Committee
b. Rangrajan Committee
c. D. Subbarao Committee
d. Bimal Jalan Committee
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Answer
Explanation
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ANSWER: Malhotra Committee
Explanation:
The IRDA Act, 1999 was passed as per the major recommendation of the Malhotra Committee report which recommended establishment of an independent regulatory authority for insurance sector in India. Later, It was incorporated as a statutory body in April, 2000.
The agency operates from its headquarters at Hyderabad, Telangana where it shifted from Delhi in 2001.IRDA batted for a hike in the foreign direct investment (FDI) limit to 49 per cent in the insurance sector from the erstwhile 26 per cent. The FDI limit in insurance sector was raised to 49% in July 2014.
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4) Which of the following statements are correct?
1. Pension Fund Regulatory and Development Authority (PFRDA) permits Non-resident Indians (NRIs) to invest in National Pension System (NPS).
2. PFRDA is authorized by Ministry of Finance, Department of Financial Services.
a. Only 1
b. Only 2
c. Both 1 and 2
d. None of the above
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Answer
Explanation
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ANSWER: Both 1 and 2
Explanation:
No explanation is available for this question!
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5) Consider the following statements
1. SEBI is statutory body
2. The chairman who is nominated by RBI
Which of the above statements is/are correct?
a. Only 1
b. Only 2
c. Both
d. None
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Answer
Explanation
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ANSWER: Only 1
Explanation:
The chairman who is nominated by Union Government of India.
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