📊 NISM Series XVChapter 14 of 15⚖ 10 marks weightageCase-Based ✓
Ch.14: Legal and Regulatory Environment
Practice questions for NISM-Series-XV: Research Analyst Certification Examination
(mandated by SEBI under the Research Analysts Regulations, 2014).
Chapter 14 carries 10 out of 100 marks
in the final examination. The exam has 80 MCQs + 5 case-based sets, 120-minute duration,
60% passing score, and −0.25 negative marking per wrong answer.
50
MCQ
2
Case Sets
58
Total Qs
10
Exam Marks
60%
Pass Score
−0.25
Neg. Marking
What You Will Learn in This Chapter
Understand SEBI Research Analyst Regulations 2014
Know compliance requirements, code of conduct and disclosure norms
Understand ASM/GSM surveillance and CSCRF cybersecurity framework
Key Terms:SEBI Regulationsresearch analyst registrationcode of conductinsider tradingASMGSMCSCRF
Multiple Choice Questions (50)
Q1MCQMediumSEBI Functions
With which regulatory body did SEBI merge on September 28, 2015, to also regulate the commodities markets in India?
AReserve Bank of India
BInsurance Regulatory and Development Authority of India
CForward Markets Commission
DPension Fund Regulatory and Development Authority
Q2MCQMediumReserve Bank of India
According to its Preamble, what is one of the basic functions of the Reserve Bank of India?
AAdministering the Companies Act
BRegulating the insurance sector
CSecuring monetary stability in India
DOverseeing insolvency processes
Q3MCQMediumRBI Functions
As the regulator and supervisor of the financial system, what is the primary objective of the Reserve Bank of India (RBI) regarding the banking system?
ATo ensure rapid growth of money supply to facilitate economic growth.
BTo maintain public confidence in the system, protect depositors' interest, and facilitate cost-effective banking services.
CTo administer the Foreign Exchange Management Act 1999 for external trade.
DTo manage issuances of Central and State Government Securities.
Q4MCQEasySEBI Functions
What is the primary role of the Securities and Exchange Board of India (SEBI) as described in its Preamble?
ATo manage foreign exchange reserves and currency circulation.
BTo regulate the insurance sector and protect policyholders.
CTo protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
DTo formulate and monitor India's fiscal policy and manage government expenditure.
Q5MCQHardMinistry of Finance - Departments
Which department within the Ministry of Finance is responsible for the systematic policy approach to disinvestment and privatization of Public Sector Undertakings?
ADepartment of Economic Affairs
BDepartment of Expenditure
CDepartment of Revenue
DDepartment of Disinvestments
Q6MCQEasyMinistry of Corporate Affairs
Which Ministry is primarily concerned with the administration of the Companies Act and the Competition Act 2002?
AMinistry of Finance
BMinistry of Corporate Affairs
CReserve Bank of India
DSecurities and Exchange Board of India
Q7MCQEasyMinistry of Corporate Affairs
Which of the following professional bodies is supervised by the Ministry of Corporate Affairs?
AAssociation of Mutual Funds in India (AMFI)
BIndian Banks' Association (IBA)
CThe Institute of Chartered Accountants of India (ICAI)
DNational Securities Depository Limited (NSDL)
Q8MCQMediumMinistry of Finance
The Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC) operate under which department of the Ministry of Finance?
ADepartment of Economic Affairs
BDepartment of Expenditure
CDepartment of Revenue
DDepartment of Financial Services
Q9MCQHardMinistry of Finance Departments
The Department of Disinvestments, within the Ministry of Finance, is primarily concerned with which of the following?
AManaging all policy matters relating to the design and production of bank notes and coins.
BAdministering various financial rules and service conditions of Central Government employees.
CSystematic policy approach to disinvestment and privatization of Public Sector undertakings.
DHandling matters relating to all Direct and Indirect Taxes through statutory Boards.
The primary purpose of the Securities Contracts (Regulation) Act, 1956 (SC(R)A) is to:
AFormulate India's fiscal policy
BAdminister the monetary policy
CPrevent undesirable transactions in securities
DRegulate the insurance sector
Q11MCQMediumMinistry of Finance Departments
Which department within the Ministry of Finance is concerned with the administration of various financial rules and regulations, including service conditions of all Central Government employees?
ADepartment of Economic Affairs
BDepartment of Expenditure
CDepartment of Revenue
DDepartment of Disinvestments
Q12MCQEasyIRDAI
What is a key aspect of the mission of the Insurance Regulatory and Development Authority of India (IRDAI)?
ATo ensure adequate growth of money supply in the economy
BTo protect the interests of subscribers to pension funds
CTo ensure protection of the interest of insurance policyholders
DTo prohibit fraudulent and unfair trade practices in securities market
Q13MCQHardPFRDA
A key responsibility assigned to the Pension Fund Regulatory and Development Authority (PFRDA) is to:
AAdminister the Foreign Exchange Management Act 1999
BRegulate the business in stock exchanges
CDesign the structure of funds and constituents in the National Pension System (NPS)
DOversee the expenditure management of Government of India
Q14MCQMediumSecurities and Exchange Board of India
Which regulatory body in India merged with the Forward Markets Commission (FMC) on September 28, 2015, and now regulates the commodities markets?
AReserve Bank of India (RBI)
BSecurities and Exchange Board of India (SEBI)
CInsurance Regulatory and Development Authority of India (IRDAI)
DPension Fund Regulatory and Development Authority (PFRDA)
Q15MCQEasyIBBI Establishment
Under which legislation was the Insolvency and Bankruptcy Board of India (IBBI) established?
ASecurities and Exchange Board of India Act, 1992
BInsolvency and Bankruptcy Code, 2016
CSecurities Contracts (Regulation) Act, 1956
DPFRDA Act, 2013
Q16MCQMediumMinistry of Finance
Which department of the Ministry of Finance handles matters relating to all Direct and Indirect Taxes through statutory Boards like CBDT and CBEC?
ADepartment of Economic Affairs
BDepartment of Expenditure
CDepartment of Revenue
DDepartment of Financial Services
Q17MCQEasyMinistry of Corporate Affairs
The Ministry of Corporate Affairs is primarily concerned with the administration of which of the following Acts?
AForeign Exchange Management Act, 1999
BSecurities Contracts (Regulation) Act, 1956
CCompanies Act
DIRDA Act, 1999
Q18MCQMediumIRDAI Functions
Which of the following is a key responsibility of the Insurance Regulatory and Development Authority of India (IRDAI)?
ARegistering fund managers and custodians for pension schemes.
BOverseeing corporate insolvency resolution and liquidation processes.
CDefining the capital and net-worth requirements for insurance companies.
DRegulating the business in stock exchanges and any other securities markets.
Q19MCQEasyInsolvency and Bankruptcy Board of India
Which authority is responsible for overseeing the insolvency process as well as insolvency professionals in India?
APension Fund Regulatory and Development Authority (PFRDA)
BInsolvency and Bankruptcy Board of India (IBBI)
CMinistry of Corporate Affairs (MCA)
DSecurities and Exchange Board of India (SEBI)
Q20MCQMediumIRDAI
IRDAI defines rules for the terms and conditions of insurance contracts. Which of the following is NOT explicitly mentioned as a term or condition for which IRDAI defines rules?
ASum assured
BSurrender value
CPremium calculation methodologies
DSettlement of claims
Q21MCQEasyMinistry of Corporate Affairs
The Ministry of Corporate Affairs is responsible for administering the Competition Act 2002. Which previous Act did the Competition Act 2002 replace?
ACompanies Act, 1956
BMonopolies and Restrictive Trade Practices Act, 1969
CPartnership Act, 1932
DSocieties Registration Act, 1980
Q22MCQMediumSEBI Act, 1992
As per Section 11(2) of the SEBI Act, 1992, which of the following is NOT a measure that SEBI could adopt?
ATo regulate the business in stock exchanges and any other securities markets.
BTo register and regulate the working of credit rating agencies.
CTo issue currency and coins and to exchange or destroy the same.
DTo prohibit insider trading in securities.
Q23MCQMediumPFRDA Responsibilities
One of the key responsibilities of the Pension Fund Regulatory and Development Authority (PFRDA) is related to the National Pension System (NPS). What is this responsibility?
ATo formulate and monitor India's fiscal policy.
BTo define the capital and net-worth requirements for insurance companies.
CTo design the structure of funds and constituents in the National Pension System (NPS).
DTo oversee the expenditure management of the Government of India.
Q24MCQHardReserve Bank of India
The Preamble of which regulatory body is defined as: “…to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage”?
ASecurities and Exchange Board of India (SEBI)
BReserve Bank of India (RBI)
CInsurance Regulatory and Development Authority of India (IRDAI)
DMinistry of Finance
Q25MCQHardSEBI Act, 1992
According to Section 11(2) of the SEBI Act, 1992, which of the following entities does SEBI specifically have the power to register and regulate?
Which of the following aspects is covered by the Securities Contracts (Regulation) Act, 1956 (SC(R)A)?
AAdministering the monetary policy to maintain price stability.
BDefining capital and net-worth requirements for insurance companies.
CGranting recognition to stock exchanges and prohibiting undesirable speculation.
DDesigning the structure of funds and constituents in the National Pension System (NPS).
Q27MCQEasyMinistry of Finance
Which department within the Ministry of Finance is the nodal agency for formulating and monitoring India's fiscal policy and the functioning of the Capital Market?
ADepartment of Economic Affairs
BDepartment of Expenditure
CDepartment of Revenue
DDepartment of Financial Services
Q28MCQMediumRBI Functions
As the manager of Foreign Exchange, the Reserve Bank of India (RBI) is responsible for administering which specific Act?
AThe Companies Act
BThe Securities Contracts (Regulation) Act, 1956
CThe Foreign Exchange Management Act 1999
DThe Insolvency and Bankruptcy Code 2016
Q29MCQMediumInsolvency and Bankruptcy Board of India
In addition to overseeing the insolvency process and insolvency professionals, the Insolvency and Bankruptcy Board of India (IBBI) is also appointed as the authority for what other specific function?
AAdministering the Partnership Act, 1932
BRegulation and development of valuers in India
CSupervising the functioning of the Tariff Advisory Committee
DManaging issuances of Central and State Government Securities
Q30MCQEasyIRDAI
Which authority is responsible for regulating the insurance sector in India and is the licensing authority for insurance companies?
ASEBI
BRBI
CIRDAI
DPFRDA
Q31MCQEasyRBI Functions
Which of the following is NOT listed as a main function of the Reserve Bank of India (RBI)?
Which of the following powers is specifically granted under the Securities Contracts (Regulation) Act, 1956 (SC(R)A) rather than the general duties of SEBI under the SEBI Act, 1992?
APromoting investors' education
BProhibiting insider trading
CGranting recognition to stock exchanges
DRegulating substantial acquisition of shares
Q37MCQHardIBBI Functions
In addition to overseeing the insolvency process and insolvency professionals, what other specific regulatory and developmental responsibility is vested with the Insolvency and Bankruptcy Board of India (IBBI)?
AAdministering the monetary policy to maintain price stability.
BRegulating the business in stock exchanges and any other securities markets.
CRegulating and development of valuers in India.
DEnsuring the adherence of insurance products to laid down rules.
Q38MCQHardRBI Preamble
The Preamble of the Reserve Bank of India defines its basic functions with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage. This specifically includes:
AAdministering the Foreign Exchange Management Act 1999 to facilitate external trade and payment.
BTo regulate the issue of Bank Notes and keeping of reserves.
CPerforming a wide range of promotional functions to support national objectives.
DActing as a banker to the Government and managing issuances of Central and State Government Securities.
Q39MCQEasyMinistry of Finance
Which department within the Ministry of Finance is the nodal agency for formulating and monitoring India's fiscal policy and the functioning of the Capital Market, including stock exchanges?
ADepartment of Economic Affairs
BDepartment of Expenditure
CDepartment of Revenue
DDepartment of Financial Services
Q40MCQEasyRBI Responsibilities
Which of the following is NOT listed as a main function of the Reserve Bank of India (RBI)?
AAs the monetary authority.
BAs the regulator and supervisor of the insurance sector.
The Securities Contracts (Regulation) Act, 1956 (SC(R)A) covers a variety of issues. Which of the following is a power specifically covered under this Act?
AAdministering the Foreign Exchange Management Act (FEMA) 1999.
BDesigning the structure of funds and constituents in the National Pension System (NPS).
CGranting recognition to stock exchanges.
DRegulating the insurance sector in India.
Q42MCQEasyMinistry of Finance
Which department within the Ministry of Finance is the nodal agency responsible for formulating and monitoring India's fiscal policy as well as the functioning of the Capital Market?
ADepartment of Revenue
BDepartment of Expenditure
CDepartment of Economic Affairs
DDepartment of Financial Services
Q43MCQEasyReserve Bank of India
The Reserve Bank of India (RBI) is primarily responsible for administering which of the following?
ACorporate Governance Standards
BMonetary Policy
CTaxation Policy
DInsurance Sector Regulations
Q44MCQHardSecurities Regulations
Which of the following powers is explicitly listed under the Securities Contracts (Regulation) Act, 1956 (SC(R)A) in the provided text?
AProhibiting insider trading in securities.
BRegistering and regulating the working of stockbrokers.
CGranting recognition to stock exchanges.
DPromoting investors’ education and training of intermediaries.
Q45MCQMediumSEBI & Commodity Markets
SEBI merged with which regulatory body on September 28, 2015, to begin regulating the commodities markets in India?
AInsurance Regulatory and Development Authority of India (IRDAI)
BForward Markets Commission (FMC)
CPension Fund Regulatory and Development Authority (PFRDA)
DInsolvency and Bankruptcy Board of India (IBBI)
Q46MCQEasyMinistry of Finance
Which department within the Ministry of Finance is responsible for the preparation of the Union Budget annually?
ADepartment of Revenue
BDepartment of Financial Services
CDepartment of Economic Affairs
DDepartment of Expenditure
Q47MCQMediumMinistry of Corporate Affairs
Which of the following professional bodies is NOT supervised by the Ministry of Corporate Affairs?
AThe Institute of Chartered Accountants of India (ICAI)
BThe Institute of Company Secretaries of India (ICSI)
CThe Institute of Cost and Works Accountants of India (ICWAI)
DThe Institute of Banking Personnel Selection (IBPS)
Q48MCQEasyMinistry of Finance
Which department within the Ministry of Finance is primarily responsible for the preparation of the Union Budget annually?
ADepartment of Revenue
BDepartment of Financial Services
CDepartment of Economic Affairs
DDepartment of Expenditure
Q49MCQMediumIBBI
Besides overseeing the insolvency process and professionals, the Insolvency and Bankruptcy Board of India (IBBI) is also appointed as the authority for the regulation and development of which group in India?
AStockbrokers
BInsurance agents
CValuers
DMerchant bankers
Q50MCQMediumSEBI
SEBI merged with which other regulatory body on September 28, 2015, to extend its regulation to the commodities markets in India?
APension Fund Regulatory and Development Authority (PFRDA)
BForward Markets Commission (FMC)
CInsurance Regulatory and Development Authority of India (IRDAI)
DInsolvency and Bankruptcy Board of India (IBBI)
Case-Based Questions (2 sets)
Case 1Case-BasedCorporate Finance and Regulatory Compliance
InnovateTech Solutions Ltd., a growing technology firm, is facing financial difficulties and considering various options to restructure its debt and raise capital. The company is exploring a public issue of debentures to raise funds and simultaneously evaluating a potential merger with a larger competitor to gain market share and financial stability. This merger, if it proceeds, would involve significant changes in their corporate structure and shareholding. Due to the financial distress, there's also a possibility that the company might enter into an insolvency resolution process if other measures fail. The board of directors is actively seeking advice on compliance with various regulations, including those related to capital raising, corporate restructuring, and potential insolvency proceedings. They are also reviewing existing contracts and financial instruments to ensure they adhere to broad parameters set for financial operations in India.
Medium Sub-question 1
If InnovateTech Solutions Ltd. proceeds with a public issue of debentures to raise capital, which regulatory body would primarily oversee the issuance of these securities and protect the interests of investors in them?
AReserve Bank of India (RBI)
BMinistry of Corporate Affairs (MCA)
CSecurities and Exchange Board of India (SEBI)
DInsolvency and Bankruptcy Board of India (IBBI)
Medium Sub-question 2
The potential merger of InnovateTech Solutions Ltd. with a larger competitor would involve significant changes in their corporate structure. Which Act, administered by the Ministry of Corporate Affairs, has replaced the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP) and would be relevant for reviewing such mergers for competition aspects?
ACompanies Act
BCompetition Act 2002
CSecurities Contracts (Regulation) Act, 1956
DForeign Exchange Management Act, 1999
Easy Sub-question 3
In the event that InnovateTech Solutions Ltd. needs to initiate an insolvency resolution process due to its financial distress, which regulatory body would be responsible for overseeing this process?
AMinistry of Finance
BSecurities and Exchange Board of India (SEBI)
CInsolvency and Bankruptcy Board of India (IBBI)
DReserve Bank of India (RBI)
Hard Sub-question 4
InnovateTech is reviewing its financial instruments and contracts to ensure adherence to broad parameters for financial operations. Which of the following functions of the Reserve Bank of India (RBI) is most relevant to setting these broad parameters and maintaining public confidence in the financial system?
AAs the issuer of currency.
BAs the manager of Foreign Exchange.
CAs the regulator and supervisor of the financial system.
DAs a banker to the Government.
Case 2Case-BasedRegulatory Framework for Financial Entities
Alpha Research & Advisory Pvt. Ltd., a newly established financial research firm, is seeking to expand its operations beyond traditional equity research. The firm plans to offer comprehensive investment advisory services to retail and institutional clients and is also considering the feasibility of launching a small mutual fund. The founders are meticulous about ensuring full compliance with the Indian financial market regulations. During a recent strategic meeting, one founder highlighted the importance of understanding the Ministry of Finance's role, specifically the Department of Economic Affairs, in overseeing capital markets and formulating fiscal policy. Another founder emphasized SEBI's overarching jurisdiction over securities markets, especially concerning investor protection and market development. They are particularly concerned about the specific process of registering as an Investment Adviser and the regulatory implications of launching a mutual fund. Furthermore, they are reviewing the corporate governance requirements and the administration of the Companies Act, which are relevant to their corporate structure and any potential public offerings they might consider in the future. The firm aims to build a reputation for integrity and adherence to the highest standards of regulatory compliance in India's dynamic financial landscape.
Hard Sub-question 1
Alpha's plan to launch a mutual fund involves several regulatory aspects. Which of the following is NOT a primary function of SEBI that directly relates to regulating entities like mutual funds and protecting investors?
APromoting and regulating self-regulatory organizations in the securities market.
BRegulating the business in stock exchanges and any other securities markets.
CAdministering the Foreign Exchange Management Act (FEMA) 1999.
DCalling for information from, undertaking inspection, and conducting inquiries of mutual funds.
Medium Sub-question 2
For Alpha Research & Advisory Pvt. Ltd. to launch a mutual fund and register as an Investment Adviser, which regulatory body would be the primary authority for registration and ongoing regulation related to these specific activities in the securities market?
AReserve Bank of India (RBI)
BMinistry of Corporate Affairs (MCA)
CSecurities and Exchange Board of India (SEBI)
DPension Fund Regulatory and Development Authority (PFRDA)
Medium Sub-question 3
The founders are reviewing the corporate governance requirements and the administration of the Companies Act. Which ministry is primarily concerned with the administration of the Companies Act and regulating the functioning of the corporate sector in India?
AMinistry of Finance
BMinistry of Corporate Affairs
CMinistry of Commerce and Industry
DMinistry of Law and Justice
Easy Sub-question 4
Which specific department within the Ministry of Finance is primarily responsible for the functioning of the Capital Market, including stock exchanges, and formulating India’s fiscal policy?
ADepartment of Expenditure
BDepartment of Revenue
CDepartment of Economic Affairs
DDepartment of Financial Services
About this content: These practice questions are based on the
NISM-Series-XV: Research Analyst Certification Examination Workbook (February 2026)
published by the National Institute of Securities Markets (NISM), Mumbai.
NISM is a SEBI-established institution. Questions cover Legal and Regulatory Environment with verified answers and explanations.
BullWiser is an independent exam preparation platform — not affiliated with NISM or SEBI.
Last updated: .
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