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

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

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What is a “repo rate”?

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What is the Phillips Curve?

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What does the “Phillips Curve” show?

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Which of the following sectors contributes the most to India’s GDP?

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What does the term “elasticity of demand” measure?

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Which organization publishes the Human Development Index (HDI)?

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Which of the following is a characteristic of “perfect competition”?

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What is the meaning of “supply-side economics”?

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Which of the following causes demand-pull inflation?

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