UPSC Prelims Practice Questions — SEBI bans seven individuals in ₹20-cr. stock manipulation case
Q1. As constituted under Section 4 of the Securities and Exchange Board of India Act, 1992, the Board of SEBI consists of how many members in total, including the Chairman?
Q2. Under the SEBI Act, 1992, the administrative head who presides over the Board of SEBI is designated as the—
- A. Chairman
- B. Whole Time Member
- C. Executive Director
- D. Presiding Officer
Q3. A person who, for consideration, offers research recommendations or opinions on securities and holds himself out as a 'research analyst' is required to be registered under which one of the following SEBI regulations?
- A. SEBI (Research Analysts) Regulations, 2014
- B. SEBI (Investment Advisers) Regulations, 2013
- C. SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003
- D. SEBI (Portfolio Managers) Regulations, 2020
Q4. Coordinated market-manipulation schemes such as 'pump-and-dump' are primarily prohibited and acted against under which one of the following SEBI regulations?
- A. SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003
- B. SEBI (Research Analysts) Regulations, 2014
- C. SEBI (Prohibition of Insider Trading) Regulations, 2015
- D. SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Q5. With reference to the May 2026 SEBI interim order against the Gupta family and the earlier Hemant Ghai matter, consider the following statements:
1. The Gupta family scheme operated as a pump-and-dump using social-media stock tips, whereas the Hemant Ghai matter involved front-running of televised recommendations.
2. Seven members of the Gupta family were debarred from the securities market under the interim order.
3. The Gupta family interim order was passed by the Securities Appellate Tribunal rather than by SEBI.
Which of the statements given above is/are correct?
- The Gupta family scheme operated as a pump-and-dump using social-media stock tips, whereas the Hemant Ghai matter involved front-running of televised recommendations.
- Seven members of the Gupta family were debarred from the securities market under the interim order.
- The Gupta family interim order was passed by the Securities Appellate Tribunal rather than by SEBI.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q6. With reference to SEBI's interim order of May 2026 in the Gupta family stock-manipulation case, consider the following statements:
1. Seven individuals of the Gupta family were debarred from the securities market.
2. The scheme caused wrongful gains exceeding Rs 20.25 crore.
3. As many as 82 thinly-traded SME scrips were manipulated.
4. The debarred persons were SEBI-registered research analysts.
Which of the statements given above are correctly identified?
- Seven individuals of the Gupta family were debarred from the securities market.
- The scheme caused wrongful gains exceeding Rs 20.25 crore.
- As many as 82 thinly-traded SME scrips were manipulated.
- The debarred persons were SEBI-registered research analysts.
- A. 1, 2 and 3
- B. 1, 2 and 4
- C. 2, 3 and 4
- D. 1, 2, 3 and 4
Q7. The corporate-governance obligations extended to SME-listed companies with effect from 1 April 2025 fall primarily under which one of the following SEBI regulations?
- A. SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- B. SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
- C. SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003
- D. SEBI (Prohibition of Insider Trading) Regulations, 2015
Q8. The framework governing initial public offers and capital raising by small and medium enterprises on the SME exchange platform is laid down primarily under which one of the following SEBI regulations?
- A. SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
- B. SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- C. SEBI (Research Analysts) Regulations, 2014
- D. SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
Q9. Appeals against orders passed by SEBI can be filed only before which one of the following statutory bodies established under the SEBI Act, 1992?
- A. Securities Appellate Tribunal
- B. National Company Law Tribunal
- C. National Company Law Appellate Tribunal
- D. Telecom Disputes Settlement and Appellate Tribunal
Q10. While SEBI regulates the securities market, the regulation and development of the insurance sector in India is operationalised by which one of the following authorities?
- A. Insurance Regulatory and Development Authority of India
- B. Pension Fund Regulatory and Development Authority
- C. Securities and Exchange Board of India
- D. Reserve Bank of India
Q11. In the SEBI proceedings concerning the CNBC Awaaz shows co-hosted by Hemant Ghai, the term 'front-running' most precisely refers to—
- A. Trading in a security ahead of a large pending order or a yet-to-be-broadcast recommendation, so as to profit from the anticipated price movement
- B. Artificially inflating a stock's price through coordinated buying and misleading tips and then selling at the peak
- C. Dealing in securities while in possession of unpublished price-sensitive information about the company
- D. Placing matched buy and sell orders among colluding parties to create a false appearance of trading volume
Q12. With reference to SEBI's investor-protection and grievance-redress mechanisms, consider the following statements:
1. SCORES enables investors to lodge and track complaints against listed companies and registered intermediaries.
2. ASBA blocks the IPO application amount in the investor's bank account until the allotment of shares.
3. Under SCORES 2.0, the timeline for redressal of investor complaints was reduced to 21 calendar days.
4. The SEBI Complaints Redress System (SCORES) is administered by the Reserve Bank of India.
Which of the statements given above is/are NOT correct?
- SCORES enables investors to lodge and track complaints against listed companies and registered intermediaries.
- ASBA blocks the IPO application amount in the investor's bank account until the allotment of shares.
- Under SCORES 2.0, the timeline for redressal of investor complaints was reduced to 21 calendar days.
- The SEBI Complaints Redress System (SCORES) is administered by the Reserve Bank of India.
- A. 1 only
- B. 3 and 4
- C. 4 only
- D. 2 and 4