Question 1

Which regulatory body is responsible for regulating the securities market and protecting investor interests in India?

Accepted Answer

The Securities and Exchange Board of India (SEBI) is the statutory body established under the Securities and Exchange Board of India Act, 1992. SEBI regulates stock exchanges, mutual funds, brokers, and all securities market participants. IRDAI regulates insurance, PFRDA regulates pensions, and RBI regulates banking. Therefore, answer is A.

Question 2

Which of the following regulatory bodies is responsible for regulating and supervising the insurance sector in India?

Accepted Answer

The Insurance Regulatory and Development Authority of India (IRDAI) is the statutory body established under the Insurance Regulatory and Development Authority Act, 1999. It regulates life insurance, general insurance, and health insurance sectors. SEBI regulates securities markets, PFRDA oversees pension schemes, and RBI regulates banking. Therefore, answer is B.

Question 3

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

Accepted Answer

PFRDA was established under the Pension Fund Regulatory and Development Authority Act, 2013, to regulate the National Pension System (NPS) and other pension schemes. NPS is a voluntary, defined-contribution pension scheme open to all Indian citizens. PFRDA does not regulate life insurance (IRDAI's role), securities trading (SEBI's role), or bank deposits (RBI's role). Therefore, answer is C.

Question 4

Which of the following is NOT a function of SEBI?

Accepted Answer

SEBI regulates securities markets, mutual funds, brokers, and investor protection. Regulating insurance products is the function of IRDAI, not SEBI. While SEBI may have some oversight of insurance-linked securities, the primary regulation of insurance is IRDAI's responsibility. Therefore, answer is D.

Question 5

Under which Act was the Insurance Regulatory and Development Authority of India (IRDAI) established?

Accepted Answer

IRDAI was established under the Insurance Regulatory and Development Authority Act, 1999. This Act grants IRDAI the authority to regulate, supervise, and develop the insurance sector in India. The SEBI Act (1992) established SEBI, the Banking Regulation Act (1949) governs banks, and the PFRDA Act (2013) established PFRDA. Therefore, answer is B.

Question 6

Which of the following statements regarding SEBI's regulatory authority is CORRECT?

Accepted Answer

SEBI (Securities and Exchange Board of India) was established in 1988 and given statutory status under the SEBI Act, 1992. SEBI regulates the securities market, including stock exchanges, mutual funds, and collective investment schemes. It does NOT regulate insurance (IRDAI does), banking (RBI does), or pension funds (PFRDA does). Therefore, answer is A.

Question 7

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

Accepted Answer

SEBI's primary functions include regulating stock exchanges, protecting investor interests, promoting fair trading practices, and regulating mutual funds and collective investment schemes. However, SEBI does NOT regulate insurance products or issue insurance licenses — that is IRDAI's exclusive function. Therefore, answer is D.

Question 8

Under which Act was the Pension Fund Regulatory and Development Authority (PFRDA) given statutory status?

Accepted Answer

PFRDA was initially established as a non-statutory body in 2003 but was given statutory status under the Pension Fund Regulatory and Development Authority Act, 2013. This Act empowers PFRDA to regulate all aspects of the National Pension System and Atal Pension Yojana. Therefore, answer is B.

Question 9

Under the National Pension System (NPS) regulated by PFRDA, a subscriber can invest in four asset classes. Which of the following is NOT one of the four standard asset classes in NPS?

Accepted Answer

The National Pension System (NPS), regulated by PFRDA, allows subscribers to invest in four primary asset classes: (1) Equity (E), (2) Government Securities/Debt (G), (3) Corporate Bonds/Debt (C), and (4) Alternative Investments including infrastructure and real estate (A). These are denoted as E, G, C, and A respectively. Mutual funds are NOT a separate asset class in NPS; instead, subscribers invest through NPS-registered fund managers who manage portfolios across these four asset classes. Commodities are also not a standard NPS asset class. Therefore, the answer is C.

Question 10

Under the SEBI Act, 1992, which of the following activities does NOT fall within SEBI's direct regulatory jurisdiction?

Accepted Answer

SEBI (Securities and Exchange Board of India) regulates securities markets, stock exchanges, mutual funds, and collective investment schemes under the SEBI Act, 1992. However, insurance products and insurance intermediaries fall under the exclusive jurisdiction of IRDAI (Insurance Regulatory and Development Authority of India), established under the Insurance Act, 1938 (as amended by the Insurance Regulatory and Development Authority Act, 1999). Life insurance policies, health insurance, and insurance agents are regulated by IRDAI, not SEBI. Therefore, the answer is C.

Question 11

SEBI has prescribed that mutual fund schemes must disclose their portfolio holdings to investors. Under which of the following SEBI regulations is this disclosure requirement primarily mandated?

Accepted Answer

SEBI mandates portfolio disclosure requirements for mutual funds under the SEBI (Mutual Funds) Regulations, 1996. These regulations require mutual fund schemes to disclose their portfolio holdings, asset allocation, and fund performance to investors on a regular basis (typically monthly or quarterly, depending on the scheme type). This disclosure requirement is part of SEBI's investor protection framework and ensures transparency in mutual fund operations. The disclosure is made through factsheets, annual reports, and regulatory filings. Therefore, the answer is B.

Question 12

The Pension Fund Regulatory and Development Authority (PFRDA) was established to regulate the National Pension System (NPS). Under which of the following acts is PFRDA primarily governed?

Accepted Answer

PFRDA (Pension Fund Regulatory and Development Authority) was established in 2003 as a statutory body to regulate and develop the pension sector in India. It was initially established under an executive resolution, but its statutory authority comes from the Pension Fund Regulatory and Development Authority Act, 2013 (PFRDA Act, 2013). This Act grants PFRDA the power to regulate pension funds, intermediaries, and the National Pension System (NPS). The PFRDA Act, 2013 is the primary governing legislation, not the Banking Regulation Act or Insurance Act. Therefore, the answer is B.

Question 13

IRDAI has prescribed that insurance intermediaries (agents and brokers) must maintain a certain minimum net owned fund (NOF) as per regulatory guidelines. Which of the following best describes the primary purpose of this NOF requirement?

Accepted Answer

IRDAI (Insurance Regulatory and Development Authority of India) mandates that insurance intermediaries — including agents, brokers, and corporate agents — maintain a minimum Net Owned Fund (NOF) to ensure financial stability and protect policyholders' interests. The NOF requirement serves as a solvency buffer and ensures that intermediaries have sufficient capital to meet their obligations. This requirement is prescribed under IRDAI's regulations for insurance agents and brokers. The primary purpose is to ensure financial soundness and consumer protection, not to generate revenue for IRDAI or to regulate premium rates. Therefore, the answer is A.

RBI Assistant SEBI, IRDAI, PFRDA

SEBI, IRDAI, PFRDA— Rules & Concept

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SEBI, IRDAI, PFRDA — Practice Questions

60-Second Revision — SEBI, IRDAI, PFRDA