gs1hard

Consider the following statements:

  1. 1.In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India.
  2. 2.In India, Foreign Institutional Investors can hold the Government Securities (G-Secs).
  3. 3.In India, Stock Exchanges can offer separate trading platforms for debts.

Which of the statements given above is/are correct?

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

Correct answer: C. 1, 2 and 3

Non-Banking Financial Companies (NBFCs) can indeed participate in the Liquidity Adjustment Facility (LAF) under specific conditions set by the RBI. Foreign Institutional Investors (FIIs), now often referred to as Foreign Portfolio Investors (FPIs), are permitted to invest in Government Securities (G-Secs) within prescribed limits. Furthermore, stock exchanges in India have been enabled to establish dedicated platforms for the trading of debt instruments, enhancing liquidity and accessibility for corporate bonds and government securities.

Source: UPSC gs1 2024

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