Unit ko samjho · NISM Series III-A
Regulatory Framework – General View
14 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 regulator primarily oversees India’s securities market and protects investors in securities?
- Which institution performs India’s central banking functions, including monetary policy implementation?
- Which regulator primarily oversees insurance companies and the insurance business in India?
- Which authority regulates the National Pension System within its statutory remit?
- Which authority maintains statutory company-registration records and receives prescribed corporate filings?
- Which authority is the unified financial regulator for India’s International Financial Services Centres?
- A company proposes a statutory merger scheme requiring tribunal sanction. Which forum is normally relevant to that company-law approval?
- An intermediary must submit a suspicious transaction report. Which authority receives this financial intelligence report?
- A regulator publishes a consultation paper seeking views on a proposed limit. No final rule is issued. How should compliance classify it?
- An internal policy allows an activity that an applicable binding SEBI rule prohibits. Which requirement takes priority?
- A firm meets a client’s contractual instruction but breaches an applicable regulation. How should the compliance team assess the transaction?
- Which legislation is the main company-law framework for incorporation and corporate governance in India?
- A regulation is published in June but expressly starts in August. A firm assesses a July transaction with no other applicable change. Which version applies?
- A listed company follows exchange rules but ignores a separate applicable company-law filing. No exemption applies. Which conclusion is correct?
Zaroori ideas
Practice bank se · 1
Which regulator primarily oversees India’s securities market and protects investors in securities?
The Securities and Exchange Board of India, or SEBI, runs the rules for the securities market. Its job is also to protect people who invest in securities. Remember: SEBI’s core job is the securities market and the people who invest in it.
Hint Common mistake: Thinking one regulator runs every money product. Match the market to the regulator whose job it is.
III-A-009Practice bank se · 2
Which institution performs India’s central banking functions, including monetary policy implementation?
The Reserve Bank of India, or RBI, is India’s central bank. It sets and runs monetary policy. Remember: Central banking and securities rules are two different jobs.
Hint Common mistake: Giving monetary policy to the securities market regulator. Keep monetary policy apart from watching the securities market.
III-A-010Practice bank se · 3
Which regulator primarily oversees insurance companies and the insurance business in India?
The Insurance Regulatory and Development Authority of India, or IRDAI, is the regulator for insurance. A bank may sell a policy. That does not change who the main regulator is. Remember: Who sells a product does not change the product’s main regulator.
Hint Common mistake: Thinking a product sold by a bank must be under RBI alone. Look at what kind of product it is in law, not at where it is sold.
III-A-011Practice bank se · 4
Which authority regulates the National Pension System within its statutory remit?
The Pension Fund Regulatory and Development Authority, or PFRDA, is the regulator for the National Pension System. The law gives it this job. Remember: PFRDA is the key regulator for the National Pension System.
Hint Common mistake: Thinking every plan for old age is an insurance product. Find the regulator that the law puts in charge of the pension system.
III-A-012Practice bank se · 5
Which authority maintains statutory company-registration records and receives prescribed corporate filings?
The Registrar of Companies keeps the records of how each company was set up. It also takes the filings a company must make by law. Remember: Setting up a company and holding shares for people are run by two different systems.
Hint Common mistake: Mixing up the body that registers companies with a share transfer agent. Think of who keeps the record of a company’s birth.
III-A-013Practice bank se · 6
Which authority is the unified financial regulator for India’s International Financial Services Centres?
The International Financial Services Centres Authority, or IFSCA, is the one regulator for India’s International Financial Services Centres. One body covers banks, insurance and securities there. Remember: An IFSC has its own single regulator for all money services.
Hint Common mistake: Thinking the home market regulators run the IFSC too. Recall the body that was set up just for these centres.
III-A-014Practice bank se · 7
A company proposes a statutory merger scheme requiring tribunal sanction. Which forum is normally relevant to that company-law approval?
The National Company Law Tribunal handles the approval of a merger under company law. Remember: Match each legal case to the forum that the law gives it to.
Hint Common mistake: Sending every company matter that touches shares to SAT. SAT hears appeals against a securities regulator. A merger under company law goes elsewhere.
III-A-015Practice bank se · 8
An intermediary must submit a suspicious transaction report. Which authority receives this financial intelligence report?
The report goes to the Director of the Financial Intelligence Unit-India, or FIU-IND. The law names this body to receive a suspicious transaction report. Remember: A suspicious transaction report has one named body that must get it.
Hint Common mistake: Thinking a report inside the firm is enough. The law asks for a report to an outside body as well.
III-A-016Practice bank se · 9
A regulator publishes a consultation paper seeking views on a proposed limit. No final rule is issued. How should compliance classify it?
A consultation paper is only a plan. It asks for views. It is not yet a rule that you must follow. Remember: Keep a planned rule apart from a rule that is already in force.
Hint Common mistake: Acting on a news headline before the final rule comes out. Check if the paper puts a legal duty in force at all.
III-A-017Practice bank se · 10
An internal policy allows an activity that an applicable binding SEBI rule prohibits. Which requirement takes priority?
The SEBI rule wins. A firm’s own policy cannot allow what the law bans. Remember: A firm’s own rules can be stricter than the law. They can never make a banned act legal.
Hint Common mistake: Treating a boss’s or a client’s yes as if it were the law’s yes. Compare a firm’s private policy with a duty that the law puts on it.
III-A-018Practice bank se · 11
A firm meets a client’s contractual instruction but breaches an applicable regulation. How should the compliance team assess the transaction?
Doing what the contract says does not fix the breach. The firm owes duties under the contract and under the rules. Both count. Remember: A deal must follow the law as well as its contract.
Hint Common mistake: Thinking the client’s signature is a full defence. Ask if a private deal can switch off a rule made by law.
III-A-019Practice bank se · 12
Which legislation is the main company-law framework for incorporation and corporate governance in India?
The Companies Act, 2013 is the main company law. It covers how a company is set up and how it is run. Remember: More than one law can apply to the same company, each for its own purpose.
Hint Common mistake: Thinking a listed company is run by the SEBI Act alone. Look for the law that covers the company as a body in its own right.
III-A-020Practice bank se · 13
A regulation is published in June but expressly starts in August. A firm assesses a July transaction with no other applicable change. Which version applies?
Judge the July deal by the rule that was in force in July. The new rule only starts in August. Remember: Check the start date and any change-over rules before you apply a new rule.
Hint Common mistake: Thinking a rule starts on the day it is published. Keep the date it came out apart from the date it starts.
III-A-021Practice bank se · 14
A listed company follows exchange rules but ignores a separate applicable company-law filing. No exemption applies. Which conclusion is correct?
Both duties still apply. Meeting one set of rules does not mean you have met the other. Remember: List every set of rules that applies to the firm, and meet each one.
Hint Common mistake: Thinking the best-known regulator is the only source of duties. Ask if the two legal duties apply side by side.
III-A-022