NBFCs, FIIs & Stock Exchanges
Question
Consider the following statements: Which of the statements given above is/are correct?
- 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.
Options
1 and 2 only
2 and 3 only
3 only
1, 2 and 3
Explanation
Statement 1 is incorrect; the RBI's Liquidity Adjustment Facility (LAF) window is primarily restricted to scheduled commercial banks and primary dealers, not standard NBFCs. Statements 2 and 3 are correct; Foreign Institutional Investors are permitted to hold G-Secs (subject to limits), and stock exchanges (like BSE and NSE) do offer dedicated debt trading platforms.
Answer: (b).
Question details
Year
2024
Paper
GS Paper 1
Question
Q42
Subject
Economy
Sub-topic
Financial Markets & Instruments
Type
Statement-based
Difficulty
Hard
Nature
Static
Source hint
RBI LAF Window Eligibility Guidelines / FII Debt Investment Limits
Same sub-topic — other years
Financial Markets & Instruments has appeared in multiple papers:
See all questions on Financial Markets & Instruments
Browse every tagged question across all years