2019
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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BSE
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NSE
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SEBI
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NSDL
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Detailed explanation-1: -Markets regulator Sebi has allowed custodial services in the commodity derivatives market which would enable participation of institutional investors, including mutual funds, in the segment.
Detailed explanation-2: -Custodians are clearing members but not trading members. They settle trades on behalf of their clients that are executed through other trading members. A trading member may assign a particular trade to a custodian for settlement. The custodian is required to confirm whether he is going to settle that trade or not.
Detailed explanation-3: -A depository has the legal ownership and more control over the asset as compared to a custodian who is not a legal owner. He acts on behalf of his clients.
Detailed explanation-4: -Custodial services offer the safekeeping of assets. In addition, a depository offers multiple services about financial assets and their transfer. For example, the Bank of New York is a custodian. Whereas NSDL and CDSL are renowned depositories.
Detailed explanation-5: -The key function of SEBI is to keep the interest of investors/traders protected. While trading in the Indian stock market, investors and traders have to execute trades while abiding by rules. This is to promote fairness.