Consider the following statements: 1. In India, Non-Banking Financial Companies can access the Liquidity…
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?
1 and 2 only
3 only
1, 2 and 3
2 and 3 only
Solution
LAF is available only to Scheduled Commercial Banks and Primary Dealers — NBFCs cannot access it directly (Statement 1 wrong). FIIs/FPIs are permitted to hold G-Secs within prescribed limits (Statement 2 correct). Stock exchanges do operate separate debt segments/platforms (Statement 3 correct).