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IBPS PO SEBI, IRDAI, PFRDA

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This page covers IBPS PO SEBI, IRDAI, PFRDA with complete concept notes, 24 graded practice MCQs, key points and exam-specific tips. Free to study.

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Concept Notes

SEBI, IRDAI, PFRDA— Rules & Concept

1.Core Concept

Read this first — the foundation of the topic
Key Functions of SEBI

Protect investors from fraud 2. Regulate stock exchanges (NSE, BSE) 3. Promote fair trading practices 4. Register and regulate mutual funds, brokers, merchant bankers 5.

Prohibit insider trading SEBI has THREE powers: Quasi-Legislative (makes rules), Quasi-Judicial (gives judgments), Quasi-Executive (investigates and raids). Chairman of SEBI is appointed by the Central Government

Current Chairman

Tuhin Kanta Pandey (as of 2025). --- IRDAI — Insurance Regulatory and Development Authority of India Established: 1999 via IRDA Act, 1999 Headquarters: Hyderabad Role: Regulates and develops the insurance industry in India

Key Functions of IRDAI

Grant licenses to insurance companies 2. Protect policyholders' interests 3. Set rules for premium rates and policy terms 4. Promote insurance awareness 5.

Regulate both Life Insurance and General Insurance companies IMPORTANT: LIC (Life Insurance Corporation) is under IRDAI, not RBI. IRDAI has 10 members — 1 Chairman + 5 whole-time + 4 part-time members

Current Chairman

Debasish Panda (2025). --- PFRDA — Pension Fund Regulatory and Development Authority Established: 2003 (interim) → statutory body via PFRDA Act, 2013 Headquarters: New Delhi Role: Regulates pension sector, especially the National Pension System (NPS)

Key Functions of PFRDA

Regulate and supervise NPS (National Pension System) 2. Appoint CRA (Central Recordkeeping Agency) — currently NSDl-CRA 3. Register Pension Fund Managers (like SBI Pension Fund, LIC Pension Fund) 4. Protect subscribers' interests 5.

Promote old-age income security NPS was launched in 2004 for government employees, opened for all citizens in 2009

Current Chairman

Deepak Mohanty (2025). ---

2.Formula Block

Memorise — at least one formula appears in every paper
• SEBI Act = 1992 → Remember '92 = 9+2 = 11 letters in 'Capital Market'
• IRDAI Act = 1999 → Remember '99 = Insurance has 9 letters
• PFRDA Act = 2013 → Pension = Oldest concept, but newest Act
Remember: M-H-D = 'Money Helps Daily'
SEBI = Mumbai (M), IRDAI = Hyderabad (H), PFRDA = Delhi (D)
SEBI → S = Shares/Securities
IRDAI → I = Insurance
PFRDA → P = Pension

(Memory Shortcuts)

Shortcut 1 — YEAR TRICK:

Shortcut 2 — HQ TRICK (Mumbai-Hyderabad-Delhi):

Shortcut 3 — WHAT THEY REGULATE:

---

3.Exam Patterns

What examiners ask — read before attempting PYQs
1

'Which body regulates mutual funds?' → SEBI

2

'IRDAI headquarters is located in?' → Hyderabad

3

'NPS is regulated by?' → PFRDA

4

'SEBI was established under which Act?' → SEBI Act, 1992

5

'Which regulator has quasi-legislative power?' → SEBI

4.Worked Example

Solve this step-by-step before moving on
1
Step 1

Identify the sector — Insurance sector

2
Step 2

Who regulates insurance? → IRDAI

3
Step 3

IRDAI was created by IRDA Act, 1999 Answer: IRDAI will grant the license. --- WORKED EXAMPLE 2 Question: Ramesh invests in a Mutual Fund. An agent cheats him. Which regulator should he complain to?

1
Step 1

Mutual Funds fall under which sector? → Securities/Capital Market

2
Step 2

Who regulates capital markets? → SEBI

3
Step 3

SEBI protects investor interests. Answer: Ramesh should complain to SEBI. --- COMMON TRAP — #1 MISTAKE STUDENTS MAKE Students confuse RBI with SEBI for Mutual Funds. RBI does NOT regulate Mutual Funds. SEBI does. Also, students think PFRDA was created in 2003. Wrong! It became a STATUTORY body only in 2013 via the PFRDA Act, 2013. It existed informally since 2003.

Key Points to Remember

  • SEBI regulates India's securities/capital market — stock exchanges, mutual funds, brokers, and listed companies.
  • SEBI became a statutory body in 1992 under the SEBI Act, 1992 — headquartered in Mumbai.
  • IRDAI regulates both Life Insurance and General Insurance companies in India.
  • IRDAI was established under IRDA Act, 1999 — headquartered in Hyderabad (NOT Mumbai).
  • PFRDA regulates the pension sector, especially the National Pension System (NPS) — headquartered in New Delhi.
  • PFRDA Act was passed in 2013 — making it the newest statutory regulator among the three.
  • Shortcut — HQ Memory: M-H-D = 'Money Helps Daily' → SEBI=Mumbai, IRDAI=Hyderabad, PFRDA=Delhi.
  • SEBI has THREE powers: Quasi-Legislative, Quasi-Judicial, and Quasi-Executive.
  • NPS was launched in 2004 for central government employees and extended to all citizens in 2009.
  • Trap Formula: Mutual Funds → SEBI (NOT RBI); Insurance → IRDAI (NOT SEBI); Pension/NPS → PFRDA.

Exam-Specific Tips

  • SEBI was established as a non-statutory body on April 12, 1988, and became statutory under SEBI Act, 1992.
  • IRDAI was constituted under the Insurance Regulatory and Development Authority Act, 1999.
  • IRDAI headquarters: Hyderabad; SEBI headquarters: Mumbai (BKC); PFRDA headquarters: New Delhi.
  • PFRDA Act was enacted in 2013, making PFRDA a statutory body — it existed as an interim body since 2003.
  • NPS (National Pension System) was launched on January 1, 2004, initially for Central Government employees.
  • IRDAI consists of 10 members: 1 Chairman + 5 whole-time members + 4 part-time members.
  • SEBI regulates: Stock Exchanges (NSE, BSE), Mutual Funds, FIIs/FPIs, Merchant Bankers, Portfolio Managers.
  • CRA (Central Recordkeeping Agency) for NPS is NSDL-CRA, appointed and supervised by PFRDA.
Practice MCQs

SEBI, IRDAI, PFRDA — Practice Questions

24graded MCQs · easy to hard · full solution & trap analysis · showing 20 of 24

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Practice 1medium

Which of the following statements correctly describes the primary regulatory objective of SEBI (Securities and Exchange Board of India)?

Practice 2medium

PFRDA (Pension Fund Regulatory and Development Authority) was established as a statutory body in which year, and under which act?

Practice 3medium

Which of the following is NOT a function of SEBI as per the Securities and Exchange Board of India Act, 1992?

Practice 4medium

Which of the following statements correctly describes the primary regulatory mandate of PFRDA (Pension Fund Regulatory and Development Authority)?

Practice 5medium

Under SEBI's regulatory framework, which of the following activities requires registration as a Category I Merchant Banker?

Practice 6medium

Which of the following statements best describes the primary regulatory objective of SEBI under the Securities and Exchange Board of India Act, 1992?

Practice 7medium

Under the Insurance Regulatory and Development Authority Act, 2015, which of the following is NOT a primary function of IRDAI?

Practice 8medium

The Pension Fund Regulatory and Development Authority (PFRDA) was established to regulate which of the following schemes in India?

Practice 9medium

Which regulatory authority in India has the mandate to regulate Alternative Investment Funds (AIFs) and ensure compliance with know-your-customer (KYC) norms for securities market participants?

Practice 10medium

Under SEBI regulations, mutual funds are required to maintain a minimum Net Asset Value (NAV) and follow specific portfolio composition norms. Which of the following best describes SEBI's role in mutual fund regulation?

Practice 11medium

Which of the following regulatory bodies is responsible for regulating and supervising the insurance sector in India, including life insurance, general insurance, and health insurance?

Practice 12medium

Under the Pension Fund Regulatory and Development Authority (PFRDA), the National Pension System (NPS) allows individuals to invest in which of the following asset classes?

Practice 13hard

The Pension Fund Regulatory and Development Authority (PFRDA) regulates the National Pension System (NPS). Under the NPS architecture, which of the following correctly describes the role and regulatory scope of PFRDA in relation to the Central Nodal Agency (CNA) and the distinction between Tier I and Tier II accounts?

Practice 14hard

Under the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, which of the following constitutes 'insider trading' as per the definition that requires both possession of Unpublished Price Sensitive Information (UPSI) AND trading in securities?

Practice 15hard

The Insurance Regulatory and Development Authority (IRDAI) was established as a statutory body under which Act, and what is its primary regulatory objective regarding policyholder protection?

Practice 16hard

The Pension Fund Regulatory and Development Authority (PFRDA) regulates the National Pension System (NPS). Which of the following correctly describes the regulatory scope of PFRDA and the structure of NPS tiers?

Practice 17hard

Under SEBI's regulatory framework, what is the minimum lock-in period for promoters' shareholding in a company seeking listing on a stock exchange, and which SEBI regulation governs this requirement?

Practice 18hard

IRDAI has prescribed specific solvency margin requirements for insurance companies to ensure financial stability. Which of the following correctly states the regulatory framework and the purpose of solvency margin requirements?

Practice 19hard

The IRDAI (Insurance Regulatory and Development Authority of India) was established as a statutory body under which Act, and in which year?

Practice 20hard

Under the Pension Fund Regulatory and Development Authority (PFRDA) framework, the National Pension System (NPS) Tier-II account can be opened by which category of individuals, and what is the minimum balance requirement?

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60-Second Revision — SEBI, IRDAI, PFRDA

  • Remember: SEBI (1992, Mumbai) = Securities | IRDAI (1999, Hyderabad) = Insurance | PFRDA (2013, Delhi) = Pension.
  • Shortcut HQ: M-H-D = Money Helps Daily → Mumbai, Hyderabad, Delhi for SEBI, IRDAI, PFRDA respectively.
  • Trap: Mutual Funds are regulated by SEBI — NOT RBI. This is the #1 trick question in exams.
  • Trap: PFRDA became statutory in 2013, NOT 2003 — 2003 was only the year it was set up informally.
  • Formula: NPS launched 2004 (Govt employees) → 2009 (All citizens) — regulated by PFRDA.
  • Remember: SEBI has 3 Quasi powers — Legislative, Judicial, Executive — unique among the three regulators.
  • Fact: IRDAI has exactly 10 members (1+5+4) — this exact number is frequently asked in MCQs.
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