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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Introduction to the Indian Financial Markets

Which statement about the roles of SEBI and RBI in the Indian financial markets is correct?

RBI regulates the money market and government securities market along with banks, while SEBI regulates the securities market, including stock exchanges and mutual funds. IRDAI regulates insurance. The other options wrongly interchange these regulators' responsibilities.

  1. ASEBI regulates the government securities market and RBI regulates stock exchanges
  2. BRBI regulates the money market and government securities market, while SEBI regulates the securities market including stock exchanges and mutual fundsCorrect
  3. CSEBI regulates commercial banks and RBI regulates mutual funds
  4. DIRDAI regulates stock exchanges and SEBI regulates insurance companies

Explanation

RBI is the regulator for banks, the money market and the government securities market. SEBI regulates securities markets, stock exchanges, mutual funds and intermediaries. The other options swap the roles.

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