NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Market Participants in the Securities Market
Which of the following entities is a Self Regulatory Organisation-like body that provides the trading platform and frames rules and bye-laws for its trading members, subject to SEBI oversight?
A stock exchange is the entity that provides the trading platform and frames rules and bye-laws for its members under SEBI oversight. Custodians, rating agencies and bankers to an issue have different roles and do not regulate trading members.
- AStock exchangeCorrect
- BCustodian
- CCredit rating agency
- DBanker to an issue
Explanation
A recognised stock exchange provides the trading platform, frames bye-laws and monitors its members under SEBI oversight. Custodians hold securities, rating agencies assign credit ratings, and bankers to an issue collect application money.
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