{"id":33627,"date":"2024-04-15T09:19:29","date_gmt":"2024-04-15T09:19:29","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=33627"},"modified":"2024-04-15T09:19:29","modified_gmt":"2024-04-15T09:19:29","slug":"prospectus-issued-by-a-company-is-to-be-vetted-and-approved-by-the-sebi-this-however-does-not-mean-that","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/prospectus-issued-by-a-company-is-to-be-vetted-and-approved-by-the-sebi-this-however-does-not-mean-that\/","title":{"rendered":"Prospectus issued by a company is to be vetted and approved by the SEBI. This, however, does not mean that"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;disclosures are adequate as per it guidelines&#8221; option2=&#8221;project proposal has been presented in conformity with its guidelines&#8221; option3=&#8221;disclosures are adequate to take an informed decision by investors&#8221; option4=&#8221;project proposal is sound or satisfactory&#8221; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>D. project proposal is sound or satisfactory<\/strong><\/p>\n<p>The Securities and Exchange Board of India (SEBI) is the regulator of the Indian securities market. It is responsible for protecting the interests of investors, promoting the development of the securities market, and regulating the activities of market participants.<\/p>\n<p>One of the functions of SEBI is to approve prospectuses issued by companies before they can be offered to the public. This is done to ensure that investors have all the information they need to make an informed decision about whether to invest in the company.<\/p>\n<p>However, SEBI&#8217;s approval of a prospectus does not mean that the project proposal is sound or satisfactory. The SEBI&#8217;s approval is only a certification that the disclosures made in the prospectus are adequate and in conformity with its guidelines. It does not mean that the project is a good investment or that it will be successful.<\/p>\n<p>Investors should always do their own research before investing in any company, and they should not rely solely on the information contained in a prospectus.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>Option A: This is correct. SEBI&#8217;s approval of a prospectus does not mean that the disclosures made in the prospectus are adequate. The SEBI only ensures that the disclosures are made in accordance with its guidelines.<\/li>\n<li>Option B: This is incorrect. SEBI&#8217;s approval of a prospectus does not mean that the project proposal has been presented in conformity with its guidelines. The SEBI only ensures that the disclosures are made in accordance with its guidelines.<\/li>\n<li>Option C: This is correct. SEBI&#8217;s approval of a prospectus does not mean that the disclosures made in the prospectus are adequate to take an informed decision by investors. The SEBI only ensures that the disclosures are made in accordance with its guidelines.<\/li>\n<li>Option D: This is incorrect. SEBI&#8217;s approval of a prospectus does not mean that the project proposal is sound or satisfactory. The SEBI only ensures that the disclosures are made in accordance with its guidelines.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;disclosures are adequate as per it guidelines&#8221; option2=&#8221;project proposal has been presented in conformity with its guidelines&#8221; option3=&#8221;disclosures are adequate to take an informed decision by investors&#8221; option4=&#8221;project proposal is sound or satisfactory&#8221; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[699],"tags":[],"class_list":["post-33627","post","type-post","status-publish","format-standard","hentry","category-banking-and-financial-institutions","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Prospectus issued by a company is to be vetted and approved by the SEBI. This, however, does not mean that<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/prospectus-issued-by-a-company-is-to-be-vetted-and-approved-by-the-sebi-this-however-does-not-mean-that\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Prospectus issued by a company is to be vetted and approved by the SEBI. 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This, however, does not mean that","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/prospectus-issued-by-a-company-is-to-be-vetted-and-approved-by-the-sebi-this-however-does-not-mean-that\/","og_locale":"en_US","og_type":"article","og_title":"Prospectus issued by a company is to be vetted and approved by the SEBI. This, however, does not mean that","og_description":"[amp_mcq option1=&#8221;disclosures are adequate as per it guidelines&#8221; option2=&#8221;project proposal has been presented in conformity with its guidelines&#8221; option3=&#8221;disclosures are adequate to take an informed decision by investors&#8221; option4=&#8221;project proposal is sound or satisfactory&#8221; correct=&#8221;option4&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/prospectus-issued-by-a-company-is-to-be-vetted-and-approved-by-the-sebi-this-however-does-not-mean-that\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T09:19:29+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/prospectus-issued-by-a-company-is-to-be-vetted-and-approved-by-the-sebi-this-however-does-not-mean-that\/","url":"https:\/\/exam.pscnotes.com\/mcq\/prospectus-issued-by-a-company-is-to-be-vetted-and-approved-by-the-sebi-this-however-does-not-mean-that\/","name":"Prospectus issued by a company is to be vetted and approved by the SEBI. 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