Skip to content

NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Market Participants in the Securities Market

Which statement about the role of a Stock Broker in the securities market under SEBI rules is correct?

A stock broker must hold SEBI registration and also be a member of a recognised stock exchange before dealing for clients. Registration with a depository or clearing corporation alone is insufficient, and exchange membership does not remove the SEBI registration requirement.

  1. AA stock broker must be registered with SEBI and be a member of a recognised stock exchange to deal on behalf of clientsCorrect
  2. BA stock broker may deal for clients after registering only with the depository
  3. CA stock broker needs registration only with the clearing corporation
  4. DA stock broker can operate without SEBI registration if it is a member of a stock exchange

Explanation

Under SEBI's stock broker regulations, a broker needs SEBI registration and membership of a recognised exchange to act for clients. Registration with only a depository or clearing corporation is not enough, and exchange membership does not remove the need for SEBI registration.

Did you get it right without looking?

One question tells you little. A timed set on Market Participants in the Securities Market shows your real accuracy, how long you take and where you lose marks.

Practise Market Participants in the Securities MarketFree diagnostic mock

More Market Participants in the Securities Market questions