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NISM Certifications · NISM-Series-VI: Depository Operations · Introduction to Depository

Mr. Iyer wants to know who regulates the activities of depositories and DPs in India. Which statement is correct?

Depositories are registered and regulated by SEBI under the Depositories Act, 1996, and DPs are governed by the SEBI (Depositories and Participants) Regulations. The RBI, stock exchanges or the Finance Ministry are not the primary regulators of depository operations.

  1. ADepositories are registered with SEBI under the Depositories Act, 1996 and the SEBI (Depositories and Participants) Regulations govern DPsCorrect
  2. BDepositories are regulated by the RBI under the Banking Regulation Act
  3. CDPs are regulated by the stock exchanges under the Companies Act alone
  4. DDepositories are regulated by the Ministry of Finance directly without SEBI

Explanation

The Depositories Act, 1996 provides the legal framework, and SEBI registers and regulates depositories and DPs through the SEBI (Depositories and Participants) Regulations. RBI, stock exchanges or the Ministry are not the primary regulators of depository activity.

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