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NISM Certifications · NISM-Series-VI: Depository Operations · Introduction to the Indian Capital Market

Suresh Patil, a new investor, asks which type of entity in the capital market acts as the regulator and has the statutory responsibility of protecting investors and developing the securities market in India. Which is correct?

SEBI, the Securities and Exchange Board of India, is the statutory regulator of the securities market, tasked with protecting investor interests and promoting and regulating the market. Depositories, clearing corporations and AMFI are market institutions or industry bodies, not the regulator.

  1. ASecurities and Exchange Board of IndiaCorrect
  2. BNational Securities Depository Limited
  3. CClearing corporation of an exchange
  4. DAssociation of Mutual Funds in India

Explanation

SEBI is the statutory regulator for the securities market, established to protect investors' interests and to promote and regulate the market. NSDL is a depository, a clearing corporation handles settlement, and AMFI is an industry body, so they are not the regulator.

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