NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Market Participants in the Securities Market
Which of the following is a self-regulatory organisation-like role performed by a stock exchange in relation to its trading members?
Inspecting members and taking disciplinary action for violations is the exchange's regulatory role. Exchanges act as front-line regulators of their trading members through bye-laws, surveillance, inspections and penalties, while monetary policy, scheme registration and certificate issue belong to others.
- AIssuing monetary policy to banks
- BInspecting members and taking disciplinary action for rule violationsCorrect
- CRegistering mutual fund schemes
- DPrinting physical share certificates
Explanation
Exchanges frame rules and bye-laws for members, monitor and inspect them, and take disciplinary action such as penalties or suspension. Monetary policy is the RBI's function, scheme registration is by SEBI, and printing share certificates is an issuer function.
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