UPSC Prelims Practice Questions — SEBI proposes extending IT framework of MIIs to arms

Q1. Which one of the following statements best describes 'Market Infrastructure Institutions' (MIIs) in the Indian securities market?

  • A. Depositories, stock brokers and merchant bankers, which together constitute the first-level regulatory tier of the securities market
  • B. Clearing corporations, custodians and credit rating agencies, which are designated as systemically important entities of the securities market
  • C. Stock exchanges, clearing corporations and depositories, which are also vested with regulatory authority as 'first-level' regulators of the market
  • D. Stock exchanges, depository participants and registrars to an issue, which are registered as market intermediaries with the Board

Q2. The provisions of the Securities and Exchange Board of India Act, by which the Board acquired statutory status, came into force on which one of the following dates?

  • A. 12 April 1988
  • B. 30 January 1992
  • C. 12 April 1992
  • D. 4 April 1993

Q3. Consider the following statements regarding the statutory and regulatory instruments governing SEBI and the institutions it supervises: 1. Stock exchanges and clearing corporations are governed by the SECC Regulations, 2018, whereas depositories are governed by a separate set of regulations for depositories and participants. 2. The preamble to the SEBI Act, 1992 describes the object of establishing the Board as protecting the interests of investors in securities and promoting the development of, and regulating, the securities market. 3. Section 11 of the SEBI Act, 1992 confers on the Board the power to make regulations, while Section 30 lays down the general duty of the Board. Which of the statements given above is/are correct?

  1. Stock exchanges and clearing corporations are governed by the SECC Regulations, 2018, whereas depositories are governed by a separate set of regulations for depositories and participants.
  2. The preamble to the SEBI Act, 1992 describes the object of establishing the Board as protecting the interests of investors in securities and promoting the development of, and regulating, the securities market.
  3. Section 11 of the SEBI Act, 1992 confers on the Board the power to make regulations, while Section 30 lays down the general duty of the Board.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q4. SEBI's 2026 proposal to bring the subsidiaries of Market Infrastructure Institutions within its information-technology and cyber security requirements seeks to extend to those subsidiaries the discipline that, for SEBI's regulated entities generally, is laid down in which one of the following instruments?

  • A. The SECC Regulations, 2018, which govern the recognition and functioning of stock exchanges and clearing corporations
  • B. The SEBI (Procedure for making, amending and reviewing of Regulations) Regulations, 2025, which codify the Board's rule-making process
  • C. The framework of the IT Resilience Index, under which an index score is computed and reviewed half-yearly by each institution
  • D. The Cybersecurity and Cyber Resilience Framework issued in 2024, which supersedes the earlier cyber security circulars for regulated entities

Q5. SEBI's Cybersecurity and Cyber Resilience Framework for Regulated Entities is built around a set of cyber resilience goals that include 'Anticipate', 'Contain' and 'Evolve'. How many such goals does the framework lay down in all?

  • A. Three
  • B. Five
  • C. Six
  • D. Eight

Q6. Which one of the following statements correctly describes the origin and status of SEBI's Cybersecurity and Cyber Resilience Framework (CSCRF)?

  • A. Issued in August 2023, it operates alongside and does not displace the earlier cyber security guidelines issued to Market Infrastructure Institutions
  • B. Issued in March 2025, it applies only to Market Infrastructure Institutions and to the subsidiaries through which they carry on their activities
  • C. Issued in August 2025, it replaces the SECC Regulations, 2018 as the governing instrument for stock exchanges and clearing corporations
  • D. Issued in August 2024, it supersedes the cyber security circulars and guidelines previously issued to entities regulated by SEBI

Q7. Consider the following parameters and the weightage assigned to each of them in SEBI's IT Resilience Index for Market Infrastructure Institutions: 1. Availability — 20 per cent 2. Security — 20 per cent 3. Integrity — 20 per cent 4. Governance — 10 per cent Which of the above is/are correctly identified?

  1. Availability — 20 per cent
  2. Security — 20 per cent
  3. Integrity — 20 per cent
  4. Governance — 10 per cent
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 4
  • D. 1, 2, 3 and 4

Q8. Which one of the following correctly states how the IT Resilience Index for Market Infrastructure Institutions came into being?

  • A. Floated through a consultation paper in March 2026 and thereafter introduced by a SEBI circular in August 2026
  • B. Floated through a consultation paper in July 2023 and thereafter introduced by a SEBI circular in August 2024
  • C. Floated through a consultation paper in June 2026 and thereafter introduced by a SEBI circular in September 2026
  • D. Introduced directly by a SEBI circular in August 2023, without any prior consultation paper being issued

Q9. In India, securities are held in dematerialised electronic form and transferred to the buyer's account after a trade through which one of the following pairs of institutions?

  • A. National Stock Exchange of India and BSE Limited, which run the country's principal equity trading platforms
  • B. National Securities Depository Limited and Central Depository Services Limited, set up in 1996 and 1999 respectively
  • C. NSE Clearing Limited and Indian Clearing Corporation Limited, which act as counterparties to trades executed on the exchanges
  • D. Multi Commodity Exchange of India and National Commodity and Derivatives Exchange, which operate the commodity derivatives segments