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    Question

    A listed company raises funds through a public issue.

    Post-listing, it fails to make timely disclosures of materialevents, leading to abnormal price movements in its shares.​  Which of the following best explains the regulatory intervention mechanism in this case?​ 
    A RBI intervenes as price volatility affects financial stability Correct Answer Incorrect Answer
    B SEBI intervenes to enforce continuous disclosure requirements Correct Answer Incorrect Answer
    C Ministry of Finance cancels the company’s listing approval Correct Answer Incorrect Answer
    D Stock exchanges intervene only if settlement fails Correct Answer Incorrect Answer
    E The company is regulated only during the issue period Correct Answer Incorrect Answer

    Solution

    SEBI’s regulatory role extends beyond issuance into post-listing compliance.​  Continuous disclosure is critical to protect investors and maintain market integrity.​  RBI does not regulate listed corporate disclosures.​  Exchanges act under SEBI’s regulatory framework. 

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