Consider the following statements :

1. In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India.

2. In India, Foreign Institutional Investors can hold the Government Securities (G-Secs).

3. In India, Stock Exchanges can offer separate trading platforms for debts.

Which of the statements given above is/are correct?

Question

Question

This question was previously asked in

UPSC CSE Prelims 2024: General Studies Official Paper

Answer 1

The correct answer is Option 4.Key Points

Non-Banking Financial Companies (NBFCs) in India do not have direct access to the Liquidity Adjustment Facility (LAF) window of the Reserve Bank of India (RBI). The LAF is primarily used by banks to manage their day-to-day liquidity mismatches. Hence, Statement 1 is incorrect.
Foreign Institutional Investors (FIIs) are permitted to invest in Government Securities (G-Secs) within the limits prescribed by the RBI and SEBI. This is part of efforts to attract foreign investment into India's debt market. Hence, Statement 2 is correct.
Indian stock exchanges like the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have established separate trading platforms for debt instruments, facilitating the trading of corporate bonds, government securities, and other debt instruments. Hence, Statement 3 is correct.
Therefore, the correct answer is option (4).