SEBI and SCRA 1956 Overview
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Questions and Answers

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?

    <p>Compliance with prescribed conditions from the central government</p> Signup and view all the answers

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

    <p>On a specified recognised stock exchange</p> Signup and view all the answers

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

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

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

    <p>Approval of its Bye-Laws by SEBI.</p> 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?

    <p>Rs. 200 crore</p> Signup and view all the answers

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

    <p>SEBI</p> 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?

    <p>The network security measures employed by the depository.</p> Signup and view all the answers

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

    <p>Having secure data transmission formats.</p> 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?

    <p>Rights and Obligations of the Beneficial Owner and Depository Participant</p> Signup and view all the answers

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

    <p>A foreign bank operating in India without the approval of the Reserve Bank of India</p> 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?

    <p>Public financial institutions</p> Signup and view all the answers

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

    <p>A credit rating agency registered with SEBI</p> Signup and view all the answers

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

    <p>A recognized depository participant</p> Signup and view all the answers

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

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

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