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

Which of the following correctly identifies the regulatory structure governing depositories in India?

Depositories are governed by the Depositories Act, 1996 and SEBI regulations, and depository participants are registered with SEBI to act as the depository's agents. They are not regulated by exchanges alone, the RBI as banks, or only the Companies Act.

  1. ADepositories Act, 1996 with SEBI as the regulator, and the depositories' business partners being DPs registered with SEBICorrect
  2. BCompanies Act alone, with the RBI registering all depository participants
  3. CSEBI Act alone, with stock exchanges regulating depositories
  4. DBanking Regulation Act, with depositories treated as banks

Explanation

Depositories operate under the Depositories Act, 1996 and SEBI regulations, and depository participants must be registered with SEBI to act as agents of the depository. The other options attribute regulation to the wrong statutes or bodies; depositories are not banks and are not regulated by exchanges.

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