In India, which of the following can trade in Corporate Bonds and Government Securities1. Insurance Companies2. Pension Funds3. Retail InvestorsSelect the correct answer using the code given below :
✓ Correct answer: d) 1, 2 and 3
ExplanationOption 1 is correct : Insurance companies in India can trade in both Corporate Bonds and Government Securi- ties (G-Secs).The Insurance Regulatory and Development Authority of India (IRDAI) allows insurance companies to in- vest in Government Bonds, Corporate Bonds, and Infrastructure Bonds, subject to prescribed limits.Option 2 is correct : Pension funds are allowed to invest in both government securities (G-Secs) and corporate bonds.For ex- ample, the Pension Fund Regulatory and Development Authority (PFRDA) permits pension funds under the National Pension System (NPS) to invest in Government Bonds, State Develop- ment Loans (SDLs), and Corporate Debt.Since pension funds fo- cus on long-term stability, they often prefer G-Secs, which offer secure and steady returns for retirement benefits.Option 3 is correct : Retail investors can trade in both corpo- rate bonds and government securities.The RBI’s Retail Direct Scheme enables individuals to directly buy and sell government securities.Corporate bonds are available for trading on the debt segments of BSE and NSE, and retail in
Practice more Economy PYQs
Attempt a free 10-question quiz or browse the full Economy previous-year-question bank with instant answers and explanations.
📈 Economy PYQs →