Trading in Corporate Bonds & G-Secs
Question
In India, which of the following can trade in Corporate Bonds and Government Securities? Select the correct answer using the code given below:
- 1.
Insurance Companies
- 2.
Pension Funds
- 3.
Retail Investors
Options
1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3
Explanation
All three entities can trade in both corporate bonds and G-Secs. Insurance Companies and Pension Funds are massive institutional participants in debt markets. Under modern RBI reforms (like the RBI Retail Direct Scheme), Retail Investors are also fully permitted to open direct accounts and trade in Government Securities and corporate bonds.
Answer: (d).
Question details
Year
2024
Paper
GS Paper 1
Question
Q43
Subject
Economy
Sub-topic
Financial Markets & Instruments
Type
Statement-based
Difficulty
Medium
Nature
Static
Source hint
RBI Retail Direct Scheme 2021
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