Q. Consider the following statements:
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.
Which of the statements given above is/are correct?
Exp) Option c is the correct answer
Statement 1 is correct: Primary dealers can access liquidity adjustment facility of the RBI. As per definition of Primary dealers by RBI- “A non-bank entity applying for permission to undertake PD business shall obtain Certificate of Registration as an NBFC under Section 45-IA of the RBI Act, 1934 from the Department of Non-Banking Supervision, Reserve Bank of India.” Thus, non-banking financial companies can access the liquidity adjustment facility of the Reserve Bank of India.
Statement 2 is correct: Foreign Institutional Investors (FIIs) are allowed to invest in Government Securities (G-Secs) in India.
Statement 3 is correct: Stock Exchanges in India can indeed offer separate trading platforms for debt instruments (bonds and other debt securities). This provides a mechanism for trading debt securities separately from equity shares.
Source: https://pib.gov.in/newsite/PrintRelease.aspx?relid=65937
