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Which of the following statement is/are correct regarding function of Stock Exchange?

A. Providing liquidity and market ability to existing securities.

B. Training of intermediaries.

C. Undertaking steps of investor protection.

D. Promotion of fair practices and code of conduct in securities market.

E. Regulation of takeover bids by companies.

Choose the correct answer from the options given below:

Solution

Correct Option: 1

Providing liquidity and marketability to existing securities is a direct function of a stock exchange, as investors can readily buy and sell listed securities. Training of intermediaries, investor protection, promoting fair practices, and regulating takeover bids are functions of SEBI, not of the stock exchange itself. Hence only A is correct.

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