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

Which of the following is a role of SEBI as the regulator of the securities market in India?

SEBI protects investor interests and regulates market intermediaries such as stock brokers. It does not execute client orders, keep demat balances or act as a trade counterparty, since those functions belong to brokers, depositories and clearing corporations respectively.

  1. AExecuting buy and sell orders on behalf of clients on the exchange
  2. BProtecting investor interests and regulating intermediaries such as brokersCorrect
  3. CMaintaining client demat balances as a depository participant
  4. DActing as counterparty to trades on the stock exchange

Explanation

SEBI's statutory objectives include protecting investors, promoting market development and regulating the market and its intermediaries, including stock brokers. Order execution is done by brokers, demat balances by depositories and participants, and counterparty guarantee by clearing corporations.

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