Question map
Not attempted Correct Incorrect ★ Bookmarked
Loading…
Q6 (CDS-I/2012) Economy › Industry, Infrastructure & Investment › Stock market indices Answer Verified

Which of the following state- ments is/are correct ? 1. NIFTY is based upon 50 firms in India. 2. NIFTY is governed and regulated by the Reserve Bank of India. 3. NIFTY does not trade in mutual funds. Select the correct answer using the codes given below :

Result
Your answer: —  Â·  Correct: A
Explanation

Statement 1 is correct as the NIFTY 50 is a benchmark stock market index representing the weighted average of 50 of the largest and most liquid Indian companies listed on the National Stock Exchange (NSE) [3]. Statement 2 is incorrect because NIFTY is owned and managed by NSE Indices Limited, a subsidiary of the NSE [3]. While the Reserve Bank of India (RBI) regulates the money market and banking, the Securities and Exchange Board of India (SEBI) is the primary regulator for stock exchanges, indices, and the capital market in India [1]. Statement 3 is incorrect because NIFTY is extensively used as a benchmark for various financial products, including mutual funds (index funds) and Exchange Traded Funds (ETFs), which actively trade and track the index's performance. Therefore, only the first statement is accurate.

Sources

  1. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > National Stock Exchange > p. 276
  2. [3] https://www.sebi.gov.in/sebi_data/attachdocs/1385619871090.pdf
  3. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > P Functions of SEBI > p. 274
How others answered
Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
Community Performance
Out of everyone who attempted this question.
50%
got it right
✓ Thank you! We'll review this.

SIMILAR QUESTIONS

CDS-II · 2019 · Q78 Relevance score: 2.75

Which of the following state- ments about 'Invest India' is/ are correct? I. It Ls a joint venture (not for profit) company. 2. It is the National Invest- ment Promotion and Facili- tation Agency of India. Select the correct answer using the code given below :

CDS-II · 2019 · Q92 Relevance score: 2.43

Which of the following state- ments is/ are correct ? I. India is a signatory to the United Nations Convention to Combat Desertification (UNCCD) 2. Ministry of Home Affairs is the nodal Ministry in the Government of India for the UNCCD. Select the correct answer using the code given below :

CDS-II · 2019 · Q19 Relevance score: 2.17

Which of the following state- ments with regard to the 'Make in India' initiative is/are correct ? I. It was launched in the year 2018. 2. Its objective is to foster innovation. Select the correct answer using the code given below :

IAS · 2022 · Q96 Relevance score: 0.09

With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct ? 1. They can sell their own goods in addition to offering their platforms as market-places. 2. The degree to which they can own big sellers on their platforms is limited. Select the correct answer using the code given below :

CDS-II · 2014 · Q53 Relevance score: -0.81

World Bank in June 2014 released a study report on India’s Power Sector titled ‘More Power to India : The Challenge of Electricity Distribution’. Which of the following is/are the key recommendation^) of the report ? 1. Ensure regulatory autonomy, effec- tiveness and accountability for utilities and regulators 2. Insulate utilities from State Govern- ments to prevent interference with internal operations 3. Scrap the Electricity Act 2003 in order to improve the revenue generation of the power distribution companies Select the correct answer using the code given below: