Question

What is the primary goal of SEBI making e-governance mandatory?

• A. To increase trading volumes
• B. To reduce the cost of compliance
• C. To safeguard the interests of investors and other stakeholders
• D. To streamline the merger and acquisition process

Answer 1

Answer:

C. To safeguard the interests of investors and other stakeholders

• Ensuring Transparency: By mandating e-governance, SEBI ensures that companies maintain a high level of transparency. All corporate actions and financial records are digitally documented, making it easier for investors and the regulatory body to access and verify information.

• Preventing Fraud: E-governance creates a verifiable digital trail of all corporate activities, which makes it significantly harder to commit fraud or engage in financial misconduct. This provides a layer of security that helps protect investors from scams.

• Promoting Accountability: The transparency provided by e-governance holds company management and directors more accountable for their decisions. This ensures that their actions align with the best interests of the company's shareholders and other stakeholders, not just their own.