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Consider the following statements:

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  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?

(a) 1 and 2 only
(b) 3 only
(c) 1, 2 and 3
(d) 2 and 3 only

1 Answer

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Answer:

(d) 2 and 3 only

Explanation:

  • Statement 1: This statement is incorrect. The Liquidity Adjustment Facility (LAF) is generally accessible to scheduled commercial banks and primary dealers, not NBFCs. NBFCs typically do not have direct access to this facility.

  • Statement 2: This statement is correct. Foreign Institutional Investors (FIIs) are allowed to invest in government securities within the limits set by the RBI.

  • Statement 3: This statement is correct. In India, stock exchanges like the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have dedicated debt trading platforms for trading in debt securities.

Therefore, statements 2 and 3 are correct, making option (d) the right answer.

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