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 ?
A
1 and 2 only
B
3 only
C
1, 2 and 3
Correct answer
D
2 and 3 only
Explanation
Statement 1 is treated as correct because standalone primary dealers, which are registered as NBFCs, can use the RBI's Liquidity Adjustment Facility along with banks. Statement 2 is correct: foreign portfolio investors (earlier called FIIs) can hold government securities, within limits and, since 2020, without limit in bonds under the Fully Accessible Route. Statement 3 is correct: stock exchanges such as NSE and BSE run separate platforms for trading debt securities. So all three.
Money, Banking & Monetary Policy