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Unit 5: Securities and Exchange Board of India
14. The scope for dollar-linked index emerged from the background of Indian equity markets Notes
increasingly getting integrated with ......................
15. A ..................... member need not be a member of BSE cash segment.
5.10 Review Questions
1. When and why was SEBI established?
2. Has SEBI succeeded so far in being the regulator of securities market?
3. Why do you think RBI does not give SEBI sweeping powers?
4. Is it necessary for India to have a separate Securities and Exchange Board of India? If yes,
elaborate.
5. What are the main indices used by the national level stock exchanges in India, and what is
their significance?
6. “Stock trading is a boon as well as bane.” Discuss.
7. How do you think the scams in Indian stock market could have been done away with?
8. Will BSE's bid to stimulate derivatives trading help? Why/ why not?
9. What is the difference between Sensex and NIFTY? Analyse the importance of each for
Indian capital market.
10. “In the West, in the recent financial crisis, financial regulators resorted to unprecedented
restrictions against short selling of shares of banks”. Give three reasons to prove that this
reaction flawed.
11. “Trading in derivatives encouraged investors to speculate”. Comment.
12. On what basis we take 30 scrips in BSE index for calculating BSE SENSEX?
13. What does the BSE Power Index tell you? When and why was it introduced? Has it served
the purpose of its introduction?
Answers: Self Assessment
1. BSEIndonext
2. Bombay Stock Exchange, National Stock Exchange
3. NSE
4. quasi-legislative, quasi-judicial, quasi-executive
5. Regulator
6. National Multi-commodity Exchange of India Limited (NMCEIL)
7. National Commodity & Derivatives Exchange
8. Multi commodity exchange of India Ltd - MCX of India Ltd (NCDEX)
9. Speculators 10. Hedging
11. forward 12. BSE PSU
13. sectoral 14. global capital markets
15. professional clearing
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