Unit ko samjho · NISM Series II-A
SEBI – Role and Regulations
10 questions is unit mein
Sawaal aur jawaab English mein hain, kyunki NISM ka exam paper bhi English mein hota hai.
Is unit mein kya hai
- Which objective is part of SEBI’s role in the Indian securities market?
- Which SEBI RTA regulation set replaced the 1993 regulations when the new framework commenced?
- Who must register an entity before it acts as a registrar to an issue and share transfer agent?
- Under regulation 18 of the RTA Regulations, 2025, what is the minimum record-preservation period, subject to other law?
- Under regulation 21(1) of the RTA Regulations, 2025, what is the outer limit for redressing a received investor grievance?
- A caller requests confidential client information from an RTA. The client has not authorised disclosure and no law requires it. What should the RTA do?
- An RTA controls exactly 10% of an issuer’s voting rights. It is asked to handle that issuer’s securities issue. What does regulation 16 imply?
- An issuer proposes an RTA contract that waives the RTA’s statutory investor obligations. Which response is appropriate?
- An employee reports suspected fraud by the RTA’s chief executive under its whistle-blower policy. Which internal recipient is specified for this complaint?
- An RTA’s managers argue that the compliance officer alone must establish all anti-fraud controls. Which allocation best matches regulation 23?
Zaroori ideas
Practice bank se · 1
Which objective is part of SEBI’s role in the Indian securities market?
Protecting investors and regulating the securities market is part of SEBI’s role, alongside promoting market development. Remember: Market regulation protects market integrity, not each investment’s return.
Hint A market regulator sets and enforces safeguards rather than eliminating investment risk. Common mistake: Assuming investor protection means compensation for every market loss.
II-A-051Practice bank se · 2
Which SEBI RTA regulation set replaced the 1993 regulations when the new framework commenced?
The RTA Regulations, 2025 replaced the 1993 regulations through their express repeal and savings provision. Remember: Use the applicable regulatory framework even when a syllabus page retains an older reference.
Hint Check the express repeal provision rather than relying only on the older syllabus reference. Common mistake: Memorising the old regulation year without checking whether it was replaced.
II-A-052Practice bank se · 3
Who must register an entity before it acts as a registrar to an issue and share transfer agent?
SEBI registration is required before an entity acts as a registrar to an issue and share transfer agent. Remember: An RTA’s appointment by an issuer does not replace regulatory registration.
Hint Look for the authority regulating securities-market intermediaries. Common mistake: Assuming an issuer contract alone authorises RTA business.
II-A-053Practice bank se · 4
Under regulation 18 of the RTA Regulations, 2025, what is the minimum record-preservation period, subject to other law?
The minimum period is 8 years under regulation 18, subject to requirements under other applicable law. Remember: Prescribed RTA records have an eight-year regulatory minimum under the cited rule.
Hint The question concerns retention of prescribed records, not certificate validity. Common mistake: Applying a familiar retention period from a different regulation.
II-A-054Practice bank se · 5
Under regulation 21(1) of the RTA Regulations, 2025, what is the outer limit for redressing a received investor grievance?
The outer limit is 21 calendar days from receipt under regulation 21(1), while grievances must still be addressed promptly. Remember: The cited grievance deadline is in calendar days, not working days.
Hint Pay attention to both the number and the type of days. Common mistake: Replacing calendar days with working days when tracking complaints.
II-A-055Practice bank se · 6
A caller requests confidential client information from an RTA. The client has not authorised disclosure and no law requires it. What should the RTA do?
The RTA should decline disclosure because the code permits disclosure of confidential client information only with client authority or a legal requirement. Remember: Confidential information requires a valid basis for disclosure.
Hint Courtesy and confidence on the phone do not establish authority to receive private information. Common mistake: Treating familiarity or a confident request as client authorisation.
II-A-056Practice bank se · 7
An RTA controls exactly 10% of an issuer’s voting rights. It is asked to handle that issuer’s securities issue. What does regulation 16 imply?
The RTA is an associate and cannot act for that issue because regulation 16 includes control of not less than 10% of voting rights. Remember: Exactly 10% meets a threshold expressed as not less than 10%.
Hint The rule tests voting-right control and includes its stated threshold. Common mistake: Reading an inclusive threshold as strictly above the stated percentage.
II-A-057Practice bank se · 8
An issuer proposes an RTA contract that waives the RTA’s statutory investor obligations. Which response is appropriate?
The RTA should reject the waiver because the agreement must not diminish either party’s statutory and regulatory obligations. Remember: An issuer agreement should allocate work without reducing legal responsibilities.
Hint A private agreement cannot simply remove duties imposed by law. Common mistake: Assuming contract wording can override securities law.
II-A-058Practice bank se · 9
An employee reports suspected fraud by the RTA’s chief executive under its whistle-blower policy. Which internal recipient is specified for this complaint?
The audit committee or equivalent body is the specified recipient for a whistle-blower complaint against the chief executive under regulation 26(3). Remember: Whistle-blower escalation depends on the position of the person complained against.
Hint The escalation route must avoid leaving a senior executive to control a complaint against themselves. Common mistake: Using the ordinary employee complaint route for allegations against top management.
II-A-059Practice bank se · 10
An RTA’s managers argue that the compliance officer alone must establish all anti-fraud controls. Which allocation best matches regulation 23?
Senior management establishes and maintains controls while the compliance officer monitors them, with board oversight and audit-committee review under regulation 23. Remember: Control ownership, compliance monitoring and governance oversight are separate responsibilities.
Hint Distinguish responsibility for creating controls from monitoring and oversight. Common mistake: Assigning every anti-fraud responsibility to the compliance officer alone.
II-A-060