UPSC Prelims Practice Questions — Avoid insinuations without any evidence, says SEBI chief

Q1. With reference to the 2026 episode involving the exit of HDFC Bank's chairman, consider the following statements comparing the responses of SEBI and the RBI: 1. SEBI initiated a preliminary review of the former chairman's resignation letter for possible violation of the rules governing directors of listed companies. 2. The RBI found material governance lapses at HDFC Bank and consequently barred it from accepting fresh deposits. 3. The RBI continued to classify HDFC Bank as a Domestic Systemically Important Bank (D-SIB) and approved an interim transition arrangement for the part-time chairman's position. Which of the statements given above is/are correct?

1. SEBI initiated a preliminary review of the former chairman's resignation letter for possible violation of the rules governing directors of listed companies.
2. The RBI found material governance lapses at HDFC Bank and consequently barred it from accepting fresh deposits.
3. The RBI continued to classify HDFC Bank as a Domestic Systemically Important Bank (D-SIB) and approved an interim transition arrangement for the part-time chairman's position.

• A. 1 and 2 only
• B. 1 and 3 only
• C. 2 and 3 only
• D. 1, 2 and 3

Q2. The 2026 public caution that 'no one can make insinuations without proper evidence being recorded' was issued by the SEBI Chairperson then in office. Who held the office of SEBI Chairperson at that time?

• A. Madhabi Puri Buch
• B. Ajay Tyagi
• C. Tuhin Kanta Pandey
• D. U. K. Sinha

Q3. In the RBI's response to the HDFC Bank episode, the bank was described as a 'Domestic Systemically Important Bank (D-SIB)'. What does this designation precisely denote?

• A. A bank whose failure could disrupt essential services and the wider economy, and which is therefore subjected to enhanced supervision and higher capital requirements
• B. A bank that is majority-owned by the Government of India and hence systemically backed by sovereign guarantee
• C. A bank authorised by the RBI to act as a primary dealer in government securities across all domestic markets
• D. A bank designated to manage the deposit insurance corpus for all scheduled commercial banks in the country

Q4. Consider the following statements regarding the 2026 HDFC Bank chairman-exit episode: 1. Atanu Chakraborty resigned as the part-time (non-executive) Chairman of HDFC Bank in March 2026. 2. The SEBI Chairperson stated that no one can make insinuations without proper evidence being recorded. 3. HDFC Bank announced the appointment of external law firms to independently review the concerns raised. 4. The RBI withdrew HDFC Bank's Domestic Systemically Important Bank (D-SIB) status following the episode. Which of the statements given above is/are NOT correct?

1. Atanu Chakraborty resigned as the part-time (non-executive) Chairman of HDFC Bank in March 2026.
2. The SEBI Chairperson stated that no one can make insinuations without proper evidence being recorded.
3. HDFC Bank announced the appointment of external law firms to independently review the concerns raised.
4. The RBI withdrew HDFC Bank's Domestic Systemically Important Bank (D-SIB) status following the episode.

• A. 1 and 3
• B. 2 and 4
• C. 1, 2 and 4
• D. 4 only

Q5. Consider the following statements relating to SEBI and the 2026 corporate-governance developments: 1. Tuhin Kanta Pandey assumed charge as SEBI Chairperson in 2024. 2. Atanu Chakraborty resigned from the board of HDFC Bank in March 2026. 3. SEBI is a statutory regulator established under the SEBI Act, 1992. 4. In 2026, the SEBI Chairperson urged independent directors to adopt a 'constructive approach' at a corporate-governance event. Which of the statements given above is/are correctly identified?

1. Tuhin Kanta Pandey assumed charge as SEBI Chairperson in 2024.
2. Atanu Chakraborty resigned from the board of HDFC Bank in March 2026.
3. SEBI is a statutory regulator established under the SEBI Act, 1992.
4. In 2026, the SEBI Chairperson urged independent directors to adopt a 'constructive approach' at a corporate-governance event.

• A. 1, 2 and 3
• B. 2, 3 and 4
• C. 1 and 4
• D. 2 and 4 only