SEBI and SCRA 1956 Overview

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What powers does SEBI have in relation to market intermediaries?

To register, regulate, and penalize them for violations (correct)

To create market intermediaries

To provide financial assistance

To offer tax exemptions

What is the main objective of the Securities Contracts (Regulation) Act, 1956?

To encourage undesirable transactions in securities

To prevent undesirable transactions in securities (correct)

To allow unrestricted trading in securities

To regulate the central government

What entities have regulatory jurisdiction under the Securities Contracts (Regulation) Act, 1956?

State governments only

Central government and SEBI (correct)

Central government only

SEBI only

What is required for a stock exchange to gain recognition under the Securities Contracts (Regulation) Act, 1956?

Compliance with prescribed conditions from the central government Signup and view all the answers

Where does organised trading activity in securities primarily take place as per the text?

On a specified recognised stock exchange Signup and view all the answers

What must a depository do within one year of receiving the certificate of registration from SEBI?

Apply for and obtain a certificate of commencement of business from SEBI. Signup and view all the answers

What is required for a depository to obtain a certificate of commencement of business from SEBI?

Approval of its Bye-Laws by SEBI. Signup and view all the answers

According to SEBI regulations, what is the required net worth for a depository to obtain a certificate of commencement of business?

Rs. 200 crore Signup and view all the answers

Which entity grants a certificate of commencement of business to a depository in India?

SEBI Signup and view all the answers

What is one of the key aspects considered by SEBI when granting a certificate of commencement of business to a depository?

The network security measures employed by the depository. Signup and view all the answers

According to SEBI regulations, what is necessary to prevent manipulation of records and transactions by a depository?

Having secure data transmission formats. Signup and view all the answers

What replaced the term 'Beneficial Owner-Depository Participant Agreements' according to the SEBI Circular Ref.No.MIRSD/12/2013?

Rights and Obligations of the Beneficial Owner and Depository Participant Signup and view all the answers

Which category is NOT eligible to sponsor a Depository for the grant of a certificate of registration?

A foreign bank operating in India without the approval of the Reserve Bank of India Signup and view all the answers

Which institution is required to hold at least 75% of the equity capital in a body corporate engaged in providing financial services to be eligible for sponsoring a Depository?

Public financial institutions Signup and view all the answers

Which type of entity is NOT eligible to sponsor a Depository for certification?

A credit rating agency registered with SEBI Signup and view all the answers

Which of the following entities is NOT considered eligible to sponsor a Depository for certification according to SEBI?

A recognized depository participant Signup and view all the answers

Who can sponsor a Depository for certification according to SEBI regulations?

A bank included in the Second Schedule to the Reserve Bank of India Act Signup and view all the answers

SEBI and SCRA 1956 Overview

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