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

Which statement about SEBI is correct with respect to the Indian securities market?

SEBI is the statutory regulator set up under the SEBI Act, 1992 to protect investors' interests and to promote and regulate the securities market. It neither operates exchanges or depositories nor sets the repo rate, which is the RBI's monetary policy function.

  1. ASEBI is the statutory regulator established under the SEBI Act, 1992 to protect investor interests and regulate the securities marketCorrect
  2. BSEBI acts as a stock exchange for trading in government securities
  3. CSEBI is a depository for holding securities of investors
  4. DSEBI directly sets the repo rate for the banking system

Explanation

SEBI was established as a statutory body under the SEBI Act, 1992 with the mandate to protect investors, develop and regulate the securities market. It does not run an exchange or depository, and repo rate is set by the RBI.

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