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

Which of the following best describes the role of SEBI as established under the SEBI Act, 1992?

SEBI's mandate under the SEBI Act, 1992 is to protect investors in securities, promote development of the securities market and regulate it. Currency issuance and banking regulation are RBI functions, and clearing corporations, not SEBI, perform clearing, while prices come from market trading.

  1. AIt issues currency and regulates banks
  2. BIt protects the interests of investors in securities, promotes development of the securities market and regulates itCorrect
  3. CIt acts as the clearing corporation for all exchanges
  4. DIt lists companies and sets their share prices daily

Explanation

SEBI's statutory mandate is investor protection, development of the securities market and regulation of it. Currency issue and bank regulation belong to the RBI, clearing is done by clearing corporations, and prices are determined by market forces.

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