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

Which of the following statements regarding the role of SEBI in the Indian capital market, as relevant to depository operations, is correct?

SEBI is the securities market regulator and it registers and regulates depositories and depository participants under the Depositories Act and SEBI regulations. It does not itself open demat accounts for investors or settle trades, which are functions of DPs and clearing corporations.

  1. ASEBI regulates depositories and depository participants under its statutory frameworkCorrect
  2. BSEBI acts as a depository participant for retail investors
  3. CSEBI maintains beneficial owner demat accounts directly
  4. DSEBI settles trades between brokers on behalf of exchanges

Explanation

SEBI is the regulator and registers and regulates depositories and DPs under the Depositories Act and its regulations. It does not hold investor accounts or act as a DP, and trade settlement is done by clearing corporations, not SEBI.

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