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

Which statement about SEBI's role in the securities market is correct?

SEBI is the statutory regulator of the Indian securities market, with the mandate to protect investors' interests and to promote and regulate the market. It is not itself an exchange, depository or clearing corporation, which are separate entities that it supervises.

  1. ASEBI is the statutory regulator that protects investors' interests and regulates the securities marketCorrect
  2. BSEBI is a stock exchange that lists companies and runs trading platforms
  3. CSEBI is a depository that holds securities in electronic form
  4. DSEBI is a clearing corporation that guarantees settlement of trades

Explanation

SEBI was established as the statutory regulator with the objectives of protecting investors, promoting market development and regulating the market. Exchanges, depositories and clearing corporations are separate entities that SEBI regulates.

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