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SEBI, IRDAI, PFRDA

Banking / Economy Awareness · Institutions, Markets & Economy

Useful for: IBPS Banking

Overview

Financial-sector regulators oversee markets, insurance and pensions.

Key points

SEBI regulates securities markets; set up in 1988, statutory since 1992; headquarters in Mumbai.
IRDAI regulates insurance; constituted under the IRDA Act, 1999; headquarters in Hyderabad.
PFRDA regulates pensions, including the National Pension System; set up in 2003, statutory under the PFRDA Act, 2013; headquarters in New Delhi.
The RBI regulates banks, NBFCs and payment systems.
Each regulator protects investors, policyholders or subscribers in its sector.

Explanation

SEBI regulates stock exchanges, mutual funds and listed companies’ disclosures.
IRDAI approves insurance products and licenses insurers.
PFRDA regulates NPS and Atal Pension Yojana.
Commodity derivatives are regulated by SEBI after the 2015 FMC merger.

Step by step

Identify the institution, rule or instrument asked.
Recall its definition, year, limit or function from a table.
Eliminate options from similar institutions or older rules.

Examples

IRDAI headquarters → Hyderabad.
The regulator of the National Pension System → PFRDA.
SEBI became a statutory body in → 1992.

Traps and advanced points

Trap: Putting IRDAI in Mumbai.
Trap: Thinking RBI regulates insurance.
Trap: Dating SEBI’s statutory status to 1988.

Quick revision

SEBI 1992 Mumbai.
IRDAI 1999 Hyderabad.
PFRDA NPS New Delhi.

Practice MCQs

Which term-description pair is correctly matched for the concept “liquidity”?
1. liquidity — Cash Reserve Ratio
2. EMI — ability to meet short-term obligations
3. liquidity — ability to meet short-term obligations
4. liquidity — Equated Monthly Instalment
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Answer: (c) liquidity — ability to meet short-term obligations. Liquidity is different from long-term solvency.
In banking/finance, what does “CASA” refer to most accurately?
1. instruction/restriction affecting how a cheque is paid/collected
2. Real Time Gross Settlement
3. Current Account Savings Account
4. Immediate Payment Service
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Answer: (c) Current Account Savings Account. CASA deposits are a key low-cost deposit base for banks.
In banking/finance, what does “NEFT” refer to most accurately?
1. ownership interest in a company
2. Indian Financial System Code
3. National Electronic Funds Transfer
4. deposit placed for a specified tenure
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Answer: (c) National Electronic Funds Transfer. Electronic bank-to-bank funds transfer system operated in batches/continuous cycles under RBI arrangements.
In banking/finance, what does “cash flow” refer to most accurately?
1. sustained rise in the general price level
2. Non-Performing Asset
3. price of one currency in terms of another
4. movement of cash and cash equivalents into/out of an entity
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Answer: (d) movement of cash and cash equivalents into/out of an entity. Different from accounting profit.
In banking/finance, what does “liquidity” refer to most accurately?
1. Anti-Money Laundering
2. P×R×T/100
3. Export-Import Bank of India
4. ability to meet short-term obligations
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Answer: (d) ability to meet short-term obligations. Liquidity is different from long-term solvency.
SEBI regulates —
1. insurance
2. pensions
3. banks
4. securities markets
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Answer: (d) securities markets. Markets.
SEBI became statutory in —
1. 1999
2. 2003
3. 1988
4. 1992
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Answer: (d) 1992. 1992.
SEBI’s headquarters is in —
1. Chennai
2. Mumbai
3. Hyderabad
4. New Delhi
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Answer: (b) Mumbai. Mumbai.
IRDAI regulates —
1. banks
2. stock markets
3. insurance
4. pensions
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Answer: (c) insurance. Insurance.
IRDAI’s headquarters is in —
1. Hyderabad
2. Kolkata
3. Pune
4. Mumbai
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Answer: (a) Hyderabad. Hyderabad.