Multiple choice

A Self Regulatory Organization can

  1. regulate all entities in the market

  2. regulate only its own members in a limited way

  3. regulate its own members with total jurisdiction

  4. regulate no one
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Self Regulatory Organizations have limited regulatory authority that extends only to their own members. For example, NSE can regulate brokers and companies listed on its exchange, but it cannot regulate entities outside its membership or the entire market. This limited jurisdiction is a key characteristic of SROs.

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