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

The depository system in India is governed primarily by which combination of laws and regulations, as it applies to the operations of a depository and its participants?

Depositories are governed by the Depositories Act, 1996, the SEBI (Depositories and Participants) Regulations, and the depository's own bye-laws and business rules. Other laws like the Companies Act supplement but do not alone form the framework.

  1. AThe Depositories Act, 1996, SEBI (Depositories and Participants) Regulations, and the depository's bye-laws and business rulesCorrect
  2. BThe Companies Act, 2013 only, with no separate depository regulations
  3. CThe Banking Regulation Act, 1949 and RBI circulars on custody
  4. DThe Indian Contract Act, 1872 and exchange listing rules only

Explanation

The Depositories Act, 1996 provides the legal framework, SEBI's Depositories and Participants Regulations set the regulatory requirements, and each depository's bye-laws and business rules govern operations. The Companies Act has related provisions but is not the sole framework, and banking or contract laws or listing rules alone do not govern depositories.

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