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

Which of the following correctly describes the regulatory arrangement for the Indian securities market in which a depository such as NSDL operates?

Depositories in India such as NSDL and CDSL are registered and regulated by SEBI under the Depositories Act, 1996 and SEBI's depository regulations. RBI regulates banking matters, stock exchanges do not license depositories, and depositories are companies, not government departments.

  1. ASEBI regulates depositories under the Depositories Act, 1996 and SEBI regulations, while RBI regulates only the banking aspects of related entitiesCorrect
  2. BRBI is the sole regulator of depositories under the Banking Regulation Act
  3. CStock exchanges directly license depositories and regulate them without SEBI
  4. DThe Ministry of Finance runs depositories as government departments

Explanation

Depositories are registered and regulated by SEBI under the Depositories Act, 1996 and the SEBI (Depositories and Participants) Regulations. RBI regulates banks and certain money and government securities aspects, not depositories as such. Stock exchanges do not license depositories, and depositories are not government departments.

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