Finance · Financial Markets
Scenario: A listed company hides vital price-sensitive insider trading data regarding an upcoming merger. The Securities and Exchange Board of India (SEBI) uncovers these structural irregularities. Which of the following regulatory actions falls within the statutory powers of SEBI?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Take over the administrative day-to-day corporate management of the company directly.
- 2Impose monetary penalties, suspend the trading of the company's shares on stock exchanges, and order explicit disclosures to the public shareholders.✓
- 3Mandate mandatory financial insurance compensation for affected retail investors under IRDAI frameworks.
- 4Direct the Reserve Bank of India (RBI) to permanently freeze all commercial bank accounts of the company.
Correct answer
Impose monetary penalties, suspend the trading of the company's shares on stock exchanges, and order explicit disclosures to the public shareholders.
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