Topic Details (Notes format)

Indian Stock Markets and SEBI Regulation

Subject: Economics

Book: Comprehensive Indian Economy

India’s stock exchanges (BSE, NSE) enable capital formation for firms, with SEBI ensuring investor protection, fair practices, and market transparency. Reforms like demutualization, T+2 settlements, and e-IPOs streamlined trading. Indices like Sensex and Nifty reflect market performance. Students should note the difference between primary and secondary markets, how IPOs raise capital, and the role of credit rating agencies. Current debates include algorithmic trading, corporate governance norms, and insider trading prevention. A thorough exam answer covers the importance of equity markets in mobilizing long-term funds and how listing fosters compliance with accounting standards.

Practice Questions

Which of the following statements best defines Gross Domestic Product (GDP)?

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What does “primary sector” of the economy include?

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What is the term for the ability of an economy to produce more output from the same inputs?

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What is the meaning of “dumping” in international trade?

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Which of the following best describes “capital formation”?

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Which of the following is a feature of monopolistic competition?

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What is the meaning of “disguised unemployment”?

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What is the primary purpose of Special Economic Zones (SEZs)?

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Which organization publishes the Human Development Index (HDI)?

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Which of the following is an example of a non-renewable resource?

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