How are foreign portfolio investments regulated in India?a) Through the RBI onlyb) Through SEBI onlyc) Through a combination of SEBI and RBI regulationsd) Through Ministry of Finance
Question
How are foreign portfolio investments regulated in India?a) Through the RBI onlyb) Through SEBI onlyc) Through a combination of SEBI and RBI regulationsd) Through Ministry of Finance
Solution
Foreign portfolio investments in India are regulated through a combination of SEBI (Securities and Exchange Board of India) and RBI (Reserve Bank of India) regulations.
Here's a step-by-step explanation:
-
SEBI: The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India. It regulates the business in stock exchanges and any other securities markets and also protects the interests of investors in securities. Foreign Portfolio Investors (FPIs) are required to register with SEBI for participating in the Indian securities market.
-
RBI: The Reserve Bank of India (RBI) is India's central banking institution, which controls the issuance and supply of the Indian Rupee. RBI regulates the financial system of the country and ensures its stability. It also manages foreign exchange under the Foreign Exchange Management Act, 1999 (FEMA).
So, the correct answer is c) Through a combination of SEBI and RBI regulations.
Similar Questions
Indian equity market is regulated by____a.SEBIb.Finance Departmentc.RBId.All of the above
Regulatory body is responsible for regulating the securities market in India? A. RBI B. SEBI C. IRDAI D. PFRDA
In the capital market structure, which institution regulates and supervises the securities market in many countries, including the United States? A. SEBI (Securities and Exchange Board of India) B. FCA (Financial Conduct Authority) C. SEC (U.S. Securities and Exchange Commission) D. AMFI (Association of Mutual Funds in India)
Regulation of the Financial Markets: A. RBI B. CAG C. SEBI D. UIDAI
Which of these authorities supervises India’s equity markets?a.Securities and Exchange Board of India (SEBI).b.Reserve Bank of India (RBI).c.The Insurance Regulatory and Development Authority (IRDA).d.Agriculture and Rural Development National Bank (NABARD).
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.