CSEET · Economic and Business Environment · Indian Financial Markets
Which of the following statements about the functions and regulation of the Indian financial system is correct?
SEBI regulates the securities market, including stock exchanges and mutual funds, while the RBI regulates banks and the money and foreign exchange markets. IRDAI oversees insurance. The wrong options mix up these roles by assigning one regulator the functions of another.
- AThe Reserve Bank of India is the principal regulator of the securities market, while SEBI regulates commercial banks
- BSEBI regulates the securities market, while the RBI regulates banks and the money and foreign exchange marketsCorrect
- CIRDAI regulates mutual funds, while SEBI regulates insurance companies
- DThe RBI regulates stock exchanges and takes decisions on listing of company shares
Explanation
SEBI is the regulator of the securities market, including stock exchanges and mutual funds. The RBI regulates banks and the money and foreign exchange markets. IRDAI regulates insurance. The other options swap the regulators' roles.
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