Question

Which of the following statement/statements are correct?

A. The money market falls directly under the regulatory jurisdiction of RBI.

B. The Securities and Exchange Board of India (SEBI) is the regulatory authority for the capital market.

Answer Options:

1. A only
2. B only
3. Both A and B
4. Neither A nor B

Answer 1

Correct Answer: Both A and B

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Explanation:

1. Statement A: The money market falls directly under the regulatory jurisdiction of RBI.

   • Correct: The money market, which deals with short-term financial instruments like treasury bills, certificates of deposit, and commercial papers, is regulated by the Reserve Bank of India (RBI).

2. Statement B: The Securities and Exchange Board of India (SEBI) is the regulatory authority for the capital market.

   • Correct: The capital market, which involves long-term investments like stocks and bonds, is regulated by the Securities and Exchange Board of India (SEBI).

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Conclusion:

Both statements are correct.
The money market is under the RBI's jurisdiction, while the capital market is regulated by SEBI.