Economics · Indian Economic Reforms
Which institutional change during India's 1991 reforms best illustrates the transition from state-controlled mechanisms to market-based regulation in the capital markets?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Delegation of stock market oversight to the Ministry of Finance for centralized control
- 2The merger of UTI with SEBI to manage investor grievances in mutual funds
- 3Empowerment of SEBI as a statutory body with regulatory authority over stock exchanges✓
- 4Setting up of NABARD to oversee capital inflows into rural infrastructure
Correct answer
Empowerment of SEBI as a statutory body with regulatory authority over stock exchanges
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