UPSC CSE Prelims
Question 24
In India, which of the following can trade in Corporate Bonds and Government Securities ?
- Insurance Companies
- Pension Funds
- Retail Investors
Select the correct answer using the code given below :
View correct answer and explanation
Correct answer: D
Correct Option: D (1, 2 and 3)
Explanation: Insurance companies, pension funds and retail investors may all invest or trade in government securities and corporate bonds, subject to the relevant regulations and access routes.
Statement / Pair / Item-wise Analysis:
1. Correct/True - Insurers invest in debt securities as regulated institutional investors.
2. Correct/True - Pension funds allocate assets to government/corporate debt.
3. Correct/True - Retail investors can access G-Secs and corporate debt through permitted platforms.
Option-wise Analysis:
A. Incorrect-omits correct item 3 (Retail investors can access G-Secs and corporate debt through permitted platforms.).
B. Incorrect-omits correct item 1 (Insurers invest in debt securities as regulated institutional investors.).
C. Incorrect-omits correct item 2 (Pension funds allocate assets to government/corporate debt.).
D. Correct-includes precisely the true/correct statements or pairs identified above.