11. What are the roles of SEBI?

Role of SEBI:

This regulatory authority acts as a watchdog for all the capital market participants and its main purpose is to provide such
an environment for the financial market enthusiasts that facilitate the efficient and smooth working of the securities market.
SEBI also plays an important role in the economy.

To make this happen, it ensures that the three main participants of the financial market are taken care of, i.e. issuers of
securities, investors, and financial intermediaries.

1. Issuers of securities

These are entities in the corporate field that raise funds from various sources in the market. This organization makes sure
that they get a healthy and transparent environment for their needs.

2. Investor

Investors are the ones who keep the markets active. This regulatory authority is responsible for maintaining an
environment that is free from malpractices to restore the confidence of the general public who invest their hard-earned
money in the markets.

3. Financial Intermediaries

These are the people who act as middlemen between the issuers and investors. They make the financial transactions
smooth and safe.

12 What do you mean by production life cycle sustainability?

Product lifecycle sustainability is an approach to managing the stages of a product’s existence so that any negative impact
on the environment is minimized.

The degree of sustainability is largely determined during the beginning of life (BOL) stage of the product lifecycle, in which
the product is designed and developed. At this stage, decisions about materials and processes required to create the
product can have a significant impact on the product’s environmental footprint.

Decisions made during BOL will impact both middle-of-life (MOL) and end-of-life (EOL) stages. For example, if materials
are chosen with an eye to reuse, that will increase the sustainability of the practices at the end of the product's usable life.
The ultimate goal of sustainability in this context is a closed-loop product lifecycle, in which all elements that go into the
creation of a product are reused, recycled or remanufactured rather than discarded.

14. What are the functions of RBI?

Now let us discuss these RBI functions in detail:

The Issuer of Bank Notes: The most important function of RBI is the issuance of currency notes and coins, except the one
rupee note and coin which are issued by the Ministry of Finance. All other notes bear the signature of the RBI Governor.
However, the agency of distribution of all notes and coins issued by the Government of India is the Reserve Bank of India.

Banker to the Government

Another chief function of RBI is that it takes care of the banking needs of the government, which includes maintaining &
operating the deposit accounts of the government, collecting the receipts of funds, and making payments on behalf of the
Government of India. It also represents the Indian Government, as a member of the International Monetary Fund and the
World Bank.

Custodian of Cash Reserves of Commercial Banks

Commercial banks are required to maintain the cash reserves at a rate decided by the RBI in its monetary policy.

Custodian of Foreign Exchange Reserve

Another of the important functions of RBI is maintaining a reserve of foreign currencies that enables the RBI to deal with
any crisis situation.

Lender of the Last Resort: Often regarded as the banker of banks, the RBI acts as a parent to all commercial banks in
India. Thus, it becomes the lender of the last resort for all banks when they are in a crisis situation. RBI helps them by
lending money, although at higher RoI, to sail through the tide of financial difficulties.

Controller of Credit: RBI controls the credit created by the commercial banks in India, in accordance with the economic
priorities of the government of India. RBI uses quantitative and qualitative methods to control and regulate the flow of
money in the market. These are implemented by announcing monetary policies at regular intervals.
16. What are the Role/Functions of Capital Market?
Mobilization of Savings: Capital market is an important source for mobilizing idle savings from the economy. It
mobilizes funds from people for further investments in the productive channels of an economy.
Capital Formation: Capital market helps in capital formation. Capital formation is net addition to the existing
stock of capital in the economy.
Provision of Investment Avenue: Capital market raises resources for longer periods of time. Thus it provides an
investment avenue for people who wish to invest resources for a long period of time.
Speed up Economic Growth and Development: Capital market enhances production and productivity in the
national economy.
Proper Regulation of Funds: Capital markets not only helps in fund mobilization, but it also helps in proper
allocation of these resources.
Service Provision: As an important financial set up capital market provides various types of services. It includes
long term and medium term loans to industry, underwriting services, consultancy services, export finance, etc.
Continuous Availability of Funds: Capital market is place where the investment avenue is continuously available
for long term investment.

17. What are the powers of SEBI?

1. Power of search and seizure: Under Section 10 SEBI is empowered to search any premises or place where it
believes that any books of accounts, documents, vouchers, computer disc or storage devices used in
connection with securities market is kept and seize them if necessary.
2. Power of arrest is another power of SEBI: Under Section 12 any officer of SEBI or any other police officer not
lower in rank than that of an Assistant Superintendent of Police, may arrest without warrant any person who has
committed an offence punishable under the Act.
3. Power for service or attachment: Under section 14 SEBI or any officer authorized by it in this behalf can
serve a copy of order made by it on the concerned person through its officers and also attach their property
pending disposal of any proceedings under the Act.
4. Appointment of officials, etc.: In terms of Section 19, SEBI may appoint its officers, employees and others as
deemed necessary for the discharge of functions under the Act.
5. Power to make regulations: The Board may, with the previous approval of Central Government, by
notification in Official Gazette, make rules consistent with the Act for carrying out the purposes of the Act.
6. Granting sanctions is a power of SEBI: Under Section 21 SEBI may grant sanction to commence any
proceedings before Appellate Tribunal or it even by itself -for sanctioning prosecution under the Act.
7. Recovery of dues: Under Section 28 the Board has been given the power to recover from any person any
sum which he is liable to pay under this Act and any other sum payable by him under this Act or rules made
thereunder.
8. Power of Central Government: Under Section 30(1) the Board has been given powers and functions as are
exercisable by a civil court under the Code of Civil Procedure.

19. Describe different strategies of corporate social responsibility

Here are five strategies that socially responsible companies are using today.
1. Promoting Healthy and Inclusive Workplace Cultures
Social responsibility starts with workplace culture and your internal community. Organizations who keep this in
mind, create environments in which their own employees can thrive and excel.
2. Designing Goals with Measurable Impact
Socially responsible companies set measurable goals. Measurable goals keep organizations accountable to
themselves and stakeholders.
CSR leaders design goals with multiple priorities in mind. These priorities include community impact, internal
business practices, and marketing reach, and public and government relations.
The time frame is also an important goal-setting consideration. CSR leaders should consider short-term and
long-term goals for a program. Some programs demand longer time horizons than others. It is up to the CSR
leader to set goals that accurately reflect these time horizons.
3. Aligning Community Impact Goals with Business Practices
Successful socially-responsible companies identify causes that align with their corporate mission, employee
base, and communities. These organizations then advance these causes through authentic and sincere actions.
4. Socially Responsible Companies Leverage Their Core Capabilities
Companies also achieve authenticity when they play to their strengths. The most impactful socially responsible
companies take advantage of their strongest assets.
5. Soliciting Feedback and Engagement to Maximize Stakeholder Value
Socially responsible companies must listen to all of their stakeholders (internal and external communities). The
strongest community initiatives incorporate feedback from employees, consumers, and the individuals that the
initiative impacts.
20. What are the various business issues in Indian context?
India is going through a period of unprecedented economic liberation, opening its vast consumer base to
international firms. However, it is a notoriously difficult place to do business, and having local help on board is
the key to unlocking the country’s vast economic potential.
Starting a Business: The cost of starting a business in India is astronomical, and the procedures involved can
be daunting without local knowledge.
Dealing with Construction Permits: Construction permits are also a costly pursuit, involving 34 procedures and
taking 196 days.
Getting Electricity: The cost of getting electricity is relatively cheap in comparison to the rest of South Asia, but
the number of procedures involved can be rather daunting.
Registering Property: Registering a property requires quite a bit of legwork and can also incur substantial
charges.
Getting Credit: India performs the best of all South Asian economies for ease of getting credit, ranking 23rd in
the world according to the World Bank and International Finance Corporation.
Protecting Investors and enforcing contracts: The concept of investor protection is one that has garnered a lot of
attention of late, and new bodies such as the Securities and Exchange Board of India (SEBI) have been set up
to that effect.
Paying Taxes: Businesses operating in India are required to make 33 tax payments a year, taking 243 hours’
worth of attention.
Trading Across Borders: Despite India opening its borders to international trade, there are still several hurdles
to overcome when importing and exporting goods.
Resolving Insolvency: It takes 4.3 years to resolve insolvency in India, far longer than the South Asian and
OECD average.
Culture: India is a cultural hotbed, and business is more about building relations than presenting figures and
sums.
TMF Group: We have the local knowledge to help you navigate these minefields. Whether you want to set up in
India or just want to streamline your Indian operations, talk to us.