n NISM Certifications
VII NISM Series VII
Medium

Which of the following acts governs the functioning of depositories in India?

Practice question from NISM Series VII Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Companies Act, 2013

  2. B

    SEBI Act, 1992

  3. Depositories Act, 1996

    Correct answer

  4. D

    Banking Regulation Act, 1949

Why this is the answer

The Depositories Act provides the legal framework for electronic holding and transfer of securities, and regulates depositories and their participants.

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