UPSC CSE Prelims
Question 41
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 ?
View correct answer and explanation
Correct answer: C
Correct Option: C (1, 2 and 3)
Explanation: Eligible primary dealers, including stand-alone primary dealers registered as NBFCs, may use RBI liquidity windows; foreign investors can hold G-Secs and exchanges provide debt platforms.
Statement / Pair / Item-wise Analysis:
1. Correct/True - Eligible stand-alone primary dealers (a category of NBFC) can access the LAF; this does not extend to every NBFC.
2. Correct/True - Foreign portfolio investors may buy eligible Indian government securities under RBI rules.
3. Correct/True - Exchanges provide dedicated debt-segment/trading platforms.
Option-wise Analysis:
A. Incorrect-omits correct item 3 (Exchanges provide dedicated debt-segment/trading platforms.).
B. Incorrect-omits correct item 1 (Eligible stand-alone primary dealers (a category of NBFC) can access the LAF; this does not extend to every NBFC.); omits correct item 2 (Foreign portfolio investors may buy eligible Indian government securities under RBI rules.).
C. Correct-includes precisely the true/correct statements or pairs identified above.
D. Incorrect-omits correct item 1 (Eligible stand-alone primary dealers (a category of NBFC) can access the LAF; this does not extend to every NBFC.).