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NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to the Securities Market

Under the regulatory structure of the Indian securities market, which statement about SEBI's role is most accurate?

SEBI is the statutory regulator of the securities market, with the mandate to protect investors, promote the development of the market and regulate it. It does not trade or settle, and it does not set monetary policy, which is the RBI's domain.

  1. ASEBI acts as the trading member of every exchange and settles trades itself
  2. BSEBI regulates the securities market, protects investor interests and promotes market developmentCorrect
  3. CSEBI is only responsible for regulating the banking sector and monetary policy
  4. DSEBI issues securities to the public to raise funds for the government

Explanation

SEBI was established to protect investors' interests, to promote development of the securities market and to regulate it. It does not trade or settle, it does not regulate monetary policy (that is RBI's role), and issuing government securities is handled by the RBI as debt manager.

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