NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Securities Market
Which of the following best describes the role of SEBI in the Indian securities market?
SEBI regulates the securities market and protects investor interests, while also promoting market development. Monetary policy is the RBI's job, underwriting is done by intermediaries, and depositories like NSDL and CDSL hold dematerialised securities.
- ARegulating the securities market and protecting investor interestsCorrect
- BIssuing currency notes and managing monetary policy
- CUnderwriting all public issues of securities
- DActing as the sole depository for dematerialised securities
Explanation
SEBI was set up to protect investors' interests, promote development of the securities market and regulate it. Currency issue and monetary policy belong to the RBI. Underwriting is done by merchant bankers and others, and depositories such as NSDL and CDSL hold securities.
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