Q1. Consider the following two statements regarding SEBI and Systematic Investment Plans: 1. SEBI was given statutory status under the SEBI Act, 1992 with the mandate of protecting investor interests, promoting the development of and regulating the securities market. 2. Under the salary-linked SIP proposal being examined by SEBI on 23 May 2026, mutual fund investments could be deducted directly from employee salaries on the lines of EPF subscriptions. Which of the statements given above is/are correct?
Explanation
Both statements are correct. The Securities and Exchange Board of India (SEBI) was given statutory status under the SEBI Act, 1992 with a three-fold mandate: protecting the interests of investors, promoting the development of the securities market, and regulating it. The salary-linked SIP proposal being examined by SEBI on 23 May 2026 would allow mutual fund investments to be deducted directly from an employee's salary by the employer on the lines of EPF subscriptions and routed into chosen mutual fund schemes, deepening household participation in capital markets and complementing reforms like UPI-based pre-IPO investments and T+0 settlement.