NISM Certifications · NISM-Series-VI: Depository Operations · Introduction to the Indian Capital Market
A client of a DP asks which regulator frames the regulations governing depositories and DPs in India, and under which Act depositories were given legal backing. Which is correct?
SEBI regulates depositories and depository participants, and the legal framework is the Depositories Act, 1996, supported by SEBI's Depositories and Participants Regulations. RBI and IRDAI oversee banks and insurers, not depositories.
- ARBI; Banking Regulation Act, 1949
- BSEBI; Depositories Act, 1996Correct
- CIRDAI; Insurance Act, 1938
- DMinistry of Finance; Companies Act, 1956 only
Explanation
Depositories in India are governed by the Depositories Act, 1996, and regulated by SEBI through the SEBI (Depositories and Participants) Regulations. RBI and IRDAI regulate banking and insurance respectively.
Did you get it right without looking?
One question tells you little. A timed set on Introduction to the Indian Capital Market shows your real accuracy, how long you take and where you lose marks.
More Introduction to the Indian Capital Market questions
- Which of the following correctly identifies the regulatory structure governing depositories in India?
- Ms. Kavita Rao wants to know which regulator frames the regulations under which depositories and depository participants operate in India. W…
- Which one of the following statements about the two depositories in India, NSDL and CDSL, is correct?
- Ms. Kavita Rao wants to buy shares of a listed company and sell them later on a stock exchange. Which entity in the Indian capital market ac…
- Ms. Kavita Rao wants to buy shares of a listed company through a stock exchange and hold them in electronic form. Which entity maintains the…
- A client of a depository participant asks which type of capital market instrument represents a loan to the issuer, pays a fixed coupon and g…