ECONOMICS (CBSE/UGC NET)

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ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Regulation usually focuses on strengthening rules and principles that financial institutions must abide by, or face tough punishments if they don’t, e.g. plans are now made to allow banks to ‘fail safely’ if necessary-i.e. allow a bank to go bust without disrupting the whole financial system.
A
Yes, I understand this from the notes
B
No, I don’t understand this from the notes
C
No, I don’t understand this, as I have not read the notes
D
None of the above
Explanation: 

Detailed explanation-1: -Financial regulation is part of ensuring the safety and soundness of the financial system and protecting consumers.

Detailed explanation-2: -The Financial Services Act 2013 (FSA) is the key statute governing the conventional finance industry (see Question 2). It replaced the Banking and Financial Services Act 1989, the Insurance Act 1996, the Payment Systems Act 2003 and the Exchange Control Act 1953.

Detailed explanation-3: -The key statutes and regulations that govern the banking industry in India are the Reserve Bank of India Act, 1934 (RBI Act), the Banking Regulation Act, 1949 (BR Act), and the Foreign Exchange Management Act, 1999 and the rules and regulations issued thereunder (FEMA):

Detailed explanation-4: -What is SEBI and what is its role? The SEBI is the regulatory authority established under Section 3 of SEBI Act 1992 to protect the interests of the investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith and incidental thereto.

There is 1 question to complete.
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