gs1medium

In India, which of the following can trade in Corporate Bonds and Government Securities?

  1. 1.Insurance Companies
  2. 2.Pension Funds
  3. 3.Retail Investors

Select the correct answer using the code given below:

  1. A.1 and 2 only
  2. B.2 and 3 only
  3. C.1 and 3 only
  4. D.1, 2 and 3
▶ Answer & Explanation

Correct answer: D. 1, 2 and 3

Insurance companies and pension funds, being large institutional investors, actively participate in trading corporate bonds and government securities to manage their asset portfolios and generate returns. Retail investors can also directly or indirectly invest in these instruments through various platforms and mutual funds, thereby participating in the bond markets.

Source: UPSC gs1 2024

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