Q. With reference to the Capital Market in India, consider the following statements:
1.Instruments of the capital market include shares, debt securities, and derivatives only.
2.Stock exchanges are part of the capital market infrastructure and act as a platform for buying and selling financial instruments.
3.SEBI, RBI, and the Union Ministry of Corporate Affairs are among the key regulatory bodies of the capital market. Which of the statements given above is/are correct?
Answer: B
Notes:
Explanation:
- Capital market instruments are not limited to shares, debt securities, and derivatives. They also include mutual funds, exchange-traded funds (ETFs), and instruments of foreign investments.
- Stock exchanges are a core component of the capital market infrastructure, providing a platform for trading in financial instruments.
- The Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI), and the Union Ministry of Corporate Affairs are among the main regulatory authorities overseeing capital market operations in India.
Source- 11th NCERT: Economics: Indian Economic Development and TMH Indian Economy by Ramesh Singh

