SEBI- Role and Regulations
6 questions. Each answer is explained.
Question 1 of 6Practice · Series II-B — Registrars to an Issue and Share Transfer Agents - Mutual Fund
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Learn these topics
More units in NISM Series II-B
- Introduction to Securities5
- Characteristic of Equities7
- Characteristics of Debt Securities7
- Characteristics of Other Securities5
- Basics of Registrars and Transfer Agents12
- Registrars and Transfer Agents Regulations12
- Basics of Mutual Funds14
- Structure and Constituents of Mutual Funds11
- Mutual Fund Products12
- Operational Concepts of Mutual Funds14
- Investors in Mutual Funds10
- Banking Operations in Mutual Funds12
- Financial Transactions12
- Non-Financial Transactions11
Exam format
| Questions | 100 · 1 mark each |
|---|---|
| Duration | 120 min · 2 hours |
| Pass mark | 50% · 50 of 100 marks |
| Negative marking | None · a wrong answer costs nothing beyond the mark |
| Certificate validity | 3 years · from the date of the examination |
| Marks for this unit | 20 of 100 marks (20%) |
That figure belongs to one published unit covered under these headings — SEBI- Role and Regulations and Introduction to Securities and Characteristic of Equities and Characteristics of Debt Securities and Characteristics of Other Securities — so the marks belong to the whole group. They are quoted together because no source divides them among its headings.
Source: March 2025 Annexure I, Units 1 to 5 (Introduction to Securities to SEBI- Role and Regulations): 20%
NISM Series II-B Registrars to an Issue and Share Transfer Agents - Mutual Fund
Exam rules read on NISM's site on 31 October 2026. Check the current rules on NISM's site (opens in a new tab)
What these answers assume, and when it was last checked
Each question uses the rules listed below. We last checked them on 5 September 2026. A Budget or SEBI circular can change a rate, lot size or expiry day. If a rule changes before your exam, treat the linked questions as out of date and check NISM's current workbook.
- NSE uses Tuesday expiry and BSE uses Thursday expiry. This applies from 1 September 2025.
- The January 2026 index lot sizes are NIFTY 65, BANKNIFTY 30, FINNIFTY 60, MIDCPNIFTY 120 and NIFTYNXT50 25.
- The October 2024 SEBI framework sets a minimum index contract value of Rs 15–20 lakh. Each exchange may list one weekly benchmark index.
- Option buyers pay the premium upfront from 1 February 2025. A short index option has an extra 2% Extreme Loss Margin on expiry day from 20 November 2024.
- Equity short-term capital gains are taxed at 20%. Long-term gains are taxed at 12.5% above Rs 1.25 lakh. Both rates apply from 23 July 2024.
- F&O income is non-speculative business income in ITR-3. NSE equity derivatives trade from 9:15 a.m. to 3:40 p.m.
- The final ten-minute session began on 3 August 2026. It aligns with the cash market Closing Auction Session.
- Most Securities Transaction Tax questions test the base and who pays. On an option sale, it is the premium and the seller pays. On a futures sale, it is the traded value and the seller pays.
- On exercise, Securities Transaction Tax uses intrinsic value: settlement price minus strike price. The buyer pays it.
- Two questions test the current rate. From 1 April 2026, option sales carry 0.15% on the premium and futures sales carry 0.05% on traded price. The earlier rates were 0.10% and 0.02% from 1 October 2024.
- This section uses the T+1 rolling settlement cycle. Obligations are fixed on T+1. A short delivery goes to buy-in auction on T+1 and settles on T+2.
- The trade-for-trade surveillance segment uses direct close-out. Funds pay in by 10:30 a.m. and pay out on or after 1:30 p.m. on settlement day.
- Securities pay in to the settlement pool by 10:30 a.m. They pay out directly to the client’s demat account by 3:30 p.m.
- The 3:30 p.m. deadline replaced 1:30 p.m. under SEBI’s 10 October 2024 circular. Direct client credit was required by SEBI’s 5 June 2024 circular.
- The optional T+0 cycle trades until 1:30 p.m. Obligations are fixed by 2:30 p.m. on the trade day. An early pay-in shortage is closed out directly.
- Cash-market Value at Risk margin is six times exponentially weighted moving-average volatility. It has a 9% floor for Group I, a 21.5% floor for Group II, and a fixed 50% or 75% level for Group III.
- Extreme Loss Margin is 3.5% for a share and 2% for a broad-market-index exchange traded fund. Mark-to-market margin is collected before the next day’s trading. The trade-for-trade segment has 100% upfront margin.
- Close-out uses the higher of the highest price from trade day to auction day and 20% above the auction day’s official close.
- A funds shortage costs 0.07% a day. The trading facility is withdrawn at a shortage of Rs 5 lakh or more.
- SCORES allows 21 calendar days, then two 15-day review levels. Online Dispute Resolution moves from conciliation to arbitration after the market participant and SCORES steps.
- At NSE, the Investor Protection Fund limit is Rs 35 lakh per investor for each defaulting or expelled member. This applies to claims arising after 13 August 2024.
- A Basic Services Demat Account has no annual maintenance charge up to Rs 4 lakh of holdings. It costs up to Rs 100 above that, until the Rs 10 lakh eligibility ceiling. These slabs apply from 1 September 2024.
- The rupee pairs are USD-INR, EUR-INR, GBP-INR and JPY-INR. The cross-currency pairs are EUR-USD, GBP-USD and USD-JPY.
- Each contract covers 1,000 units of the foreign currency, except JPY-INR. JPY-INR covers 100,000 yen and is quoted in rupees per 100 yen.
- The tick is 0.25 paise, or Rs 0.0025. It equals Rs 2.50 a contract.
- Rupee pairs trade from 9:00 a.m. to 5:00 p.m. A monthly contract stops trading at 12:30 p.m. two working days before the expiry month’s last business day.
- Final settlement is in cash at the FBIL reference rate on expiry day. FBIL, Financial Benchmarks India, has published this rate in place of the Reserve Bank since 2018. Premium-style European options are quoted in rupees. The buyer pays the premium in cash on T+1.
- Daily settlement is on T+1 and final settlement is on T+2.
- NSE Clearing circular 026/2020 sets SPAN margin plus Extreme Loss Margin. The futures margin is 0.50% for USD-INR, 0.15% for EUR-INR, 0.25% for GBP-INR and 0.35% for JPY-INR. A short option has 0.75%. These figures apply from 1 June 2020.
- A USD-INR client may hold 6% of total open interest or USD 20 million, whichever is higher. A trading member may hold 15% or USD 100 million.
- A resident user has one USD 100 million equivalent limit across all rupee pairs and exchanges. No document is needed below that limit, but a valid underlying contracted exposure must still exist. This clarification applies from 3 May 2024.
- The currency segment has no Securities Transaction Tax.
The exam figures (questions, time, pass mark, negative marking and certificate validity) come from NISM's own pages, read on 31 October 2026. Timed practice uses the same figures. Study with the official workbook as well.
The written-out answers on this page are hidden while your timed set runs.
All 6 questions on SEBI- Role and Regulations, with answers
Q1Which Indian regulator supervises the securities market?
Option A. Reserve Bank of India alone
Why it is wrong: RBI regulates banking and monetary matters, not securities markets overall.
Option B. SEBI — Correct answer
Option C. Central Board of Direct Taxes
Why it is wrong: CBDT handles direct-tax administration.
Option D. Registrar of Companies alone
Why it is wrong: Corporate registration differs from securities market regulation.
Answer: B. SEBI is India's statutory securities market regulator.
Hint, shown before you answer in practice mode: Recall the regulator formed under the securities regulator law.
II-B-025easyconceptual
Q2Which activity is within SEBI's investor-protection role?
Option A. Setting every listed stock price
Why it is wrong: Market prices are set through trading, not a SEBI price list.
Option B. Guaranteeing mutual fund returns
Why it is wrong: SEBI does not guarantee portfolio performance.
Option C. Regulating securities-market intermediaries — Correct answer
Option D. Approving individual portfolio profits
Why it is wrong: Profits cannot be approved by a regulator.
Answer: C. SEBI registers and supervises intermediaries to support orderly markets and investor protection.
Hint, shown before you answer in practice mode: Think about oversight rather than profit promises.
II-B-026mediumconceptual
Q3Which legislation established SEBI's statutory powers?
Option A. Companies Act, 1956 that governed company incorporation
Why it is wrong: Corporate law is not the source of SEBI's core statutory authority.
Option B. Income-tax Act, 1961 that governs direct taxes
Why it is wrong: Income-tax legislation concerns taxation rather than market regulation.
Option C. Banking Regulation Act, 1949 for commercial banks
Why it is wrong: Banking law is not the SEBI enabling statute.
Option D. Securities and Exchange Board of India Act, 1992 — Correct answer
Answer: D. The SEBI Act, 1992 supplies the regulator's statutory mandate.
Hint, shown before you answer in practice mode: Identify the law named after the regulator.
II-B-027mediumregulatory
Q4Which behaviour is the main concern of insider-trading rules?
Option A. Trading based on prohibited unpublished price-sensitive information — Correct answer
Option B. Trading using publicly released annual results after their announcement
Why it is wrong: Publicly released information is not unpublished inside information.
Option C. Checking the published scheme NAV on the fund house website
Why it is wrong: Published NAV checking is normal investor activity.
Option D. Applying for a mutual fund unit through a registered distributor
Why it is wrong: An ordinary compliant subscription is not insider trading.
Answer: A. Insider-trading controls target misuse of unpublished price-sensitive information.
Hint, shown before you answer in practice mode: Ask whether material price-sensitive information is public.
II-B-028mediumconceptual
Q5Which action would normally support investor grievance redressal?
Option A. Promising compensation without examination
Why it is wrong: Assurances must not replace proper investigation.
Option B. Maintaining documented complaint records and escalation — Correct answer
Option C. Sharing grievance details with unrelated investors
Why it is wrong: Disclosure would create confidentiality risks.
Option D. Deleting unresolved complaints
Why it is wrong: Deletion removes evidence and prevents proper resolution.
Answer: B. Documented complaints, follow-up and escalation support fair grievance resolution.
Hint, shown before you answer in practice mode: Think about traceable handling and escalation.
II-B-029mediumconceptual
Q6As of 2026, which SEBI regulations form the updated RTA regulatory framework?
Option A. SEBI Mutual Funds Regulations, 1996 as the sole RTA law
Why it is wrong: Mutual fund rules do not substitute for RTA-specific regulations.
Option B. SEBI Issue of Capital Regulations, 2009 as the sole RTA law
Why it is wrong: Issue rules are not the dedicated current RTA framework.
Option C. SEBI RTA Regulations, 2025 — Correct answer
Option D. SEBI RTA Regulations, 1993 as the only current rules
Why it is wrong: The 2025 framework superseded the earlier standalone framework.
Answer: C. SEBI notified Registrars to an Issue and Share Transfer Agents Regulations, 2025 to update the dedicated RTA framework.
Hint, shown before you answer in practice mode: Check whether a newer RTA regulation has been notified.
II-B-030mediumregulatory
SEBI- Role and Regulations: common questions
How many practice questions are there on SEBI- Role and Regulations?
6 questions, all written out on this page with the correct answer and why each other option is wrong. This unit is one of the 15 practice topics for NISM Series II-B, which has 150 questions in total.
Are these real NISM Series II-B questions on SEBI- Role and Regulations?
No. LearnNifty wrote every question from NISM's public syllabus. NISM does not publish its question bank, so nobody can offer you the real paper. Use these questions to check that an idea has gone in. Use the official NISM workbook to see what is examined.
How much of the NISM Series II-B exam is SEBI- Role and Regulations?
NISM's published syllabus outline gives it 20 of the paper's 100 marks, or 20% of the exam. That figure covers one published unit taught here under more than one heading (SEBI- Role and Regulations and Introduction to Securities and Characteristic of Equities and Characteristics of Debt Securities and Characteristics of Other Securities). So it is the marks for the group, not for this page alone. No source splits it, so it is not split here. The published unit it comes from: March 2025 Annexure I, Units 1 to 5 (Introduction to Securities to SEBI- Role and Regulations): 20%
Does negative marking apply to NISM Series II-B?
No. NISM applies no negative marking to Series II-B. A wrong answer costs nothing beyond the mark you did not earn, so a blank is never better than an attempt. Timed practice here uses the same rule.
Are these practice questions kept up to date?
Each question is written against the rules printed on this page, last checked on 5 September 2026. A Budget or a SEBI circular can change a rate, a lot size or an expiry day. If one of those rules changes before your exam, treat the questions that use it as out of date. Then check NISM's current workbook.
Basics of Registrars and Transfer Agents
12 questions on Basics of Registrars and Transfer Agents. Its quiz opens on that unit.
Open Basics of Registrars and Transfer AgentsPaper Trading Try it on the practice trading desk