In India, Foreign Institutional Investors can hold the Government Securities (G-Secs). In India, Stock Exchanges can offer separate trading platforms for debts.
In India, Foreign Institutional Investors can hold the Government Securities (G-Secs). In India, Stock Exchanges can offer separate trading platforms for debts. Consider
the following statements: In India, Non-Banking Financial Companies can access the Liquidity
Adjustment Facility window of the Reserve Bank of India. In India, Foreign Institutional Investors can hold the Government
Securities (G-Secs). In India, Stock Exchanges can offer separate trading platforms for
debts. Which
of the statements given above is/are correct? (a). 1 and 2 only (b). 3 only (c). 1, 2 and 3 (d). 2 and 3 only Explanation: Statement 1: Incorrect - While NBFCs play
a crucial role in the financial system, they generally do not have direct
access to the Liquidity Adjustment Facility (LAF) window of the RBI. This
facility is primarily meant for commercial banks. Statement 2: Correct - FIIs are indeed
allowed to invest in G-Secs in India. This is a significant avenue for foreign
investment in the Indian debt market. Statement 3: Correct - India's stock
exchanges have dedicated platforms for trading debt instruments, such as
government bonds, corporate bonds, a…