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 is an example of a capital receipt for the government?

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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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Which term refers to the decrease in the value of a currency relative to foreign currencies?

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Which of the following factors is NOT included in the calculation of Human Development Index (HDI)?

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What is the concept of “invisible hand” associated with?

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What does the Gini Coefficient measure?

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What is “fiscal stimulus”?

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What is meant by “credit rating”?

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Which economic concept is described as “the next best alternative foregone”?

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What does “primary sector” of the economy include?

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