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, due to their long-term liabilities and substantial asset bases, are significant participants in the bond markets, investing in both government securities and corporate bonds to meet their obligations. Retail investors, with the advent of online trading platforms and demat accounts, can also directly or indirectly invest in corporate bonds and government securities, though often in smaller volumes compared to institutional investors.

Source: UPSC gs1 2024

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