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Q43 (IAS/2024) Economy › Money, Banking & Inflation › Financial markets overview Official Key

In India, which of the following can trade in Corporate Bonds and Government Securities ? 1. Insurance Companies 2. Pension Funds 3. Retail Investors Select the correct answer using the code given below :

Result
Your answer: —  ·  Correct: D
Explanation

The correct answer is option D because all three entities—insurance companies, pension funds, and retail investors—can trade in corporate bonds and government securities in India.

Insurance companies are among the select entities permitted by RBI to undertake repo in corporate debt securities.[1] Pension Fund Managers invest in various classes of securities including Corporate Bonds and Government Securities as per PFRDA guidelines.[2] Retail individual investors can open a Retail Direct Gilt (RDG) Account with RBI and purchase Government securities (Treasury Bills and Dated Securities, State Government securities) in both primary and secondary markets.[3]

Therefore, all three categories of investors—insurance companies (Statement 1), pension funds (Statement 2), and retail investors (Statement 3)—are permitted to trade in these securities, making option D (1, 2 and 3) the correct answer.

Sources
  1. [1] https://www.rbi.org.in/commonman/english/scripts/FAQs.aspx?Id=711
  2. [2] https://mea.gov.in/Portal/CountryNews/4929_FAQs_on_NPA_for_NRIs.pdf
  3. [3] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > Retail Direct Scheme (of RBI): > p. 47
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.
58%
got it right
PROVENANCE & STUDY PATTERN
Full view
Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. In India, which of the following can trade in Corporate Bonds and Government Securities ? 1. Insurance Companies 2. Pension Funds 3. R…
At a glance
Origin: Books + Current Affairs Fairness: Low / Borderline fairness Books / CA: 3.3/10 · 6.7/10

This question blends 'Static Common Sense' (Institutions like Insurance/Pension funds exist to invest money) with 'High-Profile Reform' (RBI Retail Direct Scheme). It rewards understanding the *business model* of financial players rather than just memorizing lists.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
In India, are insurance companies permitted to trade in corporate bonds and government securities?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 4/5
"RBI has permitted select entities (scheduled commercial banks excluding RRBs and LABs, PDs, all-India FIs, NBFCs, mutual funds, housing finance companies, insurance companies) to undertake repo in corporate debt securities. This is similar to repo in G-Secs except that corporate debt securities are used as collateral for borrowing funds."
Why this source?
  • RBI explicitly permits select entities, including 'insurance companies', to undertake repo in corporate debt securities.
  • The passage lists 'insurance companies' among the permitted entities, directly tying insurance firms to permitted activity in corporate bonds.
  • The text notes this repo arrangement is 'similar to repo in G-Secs', linking the permission for corporate-debt repo to the government-securities repo framework.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.7 Financial Markets > p. 50
Strength: 5/5
“In this market transaction is between the issuer (company) of security and the investor. In the securities example earlier, the market in which the company issued bonds for the first time to one lakh investors is the primary market.• (ii) Secondary Market: Once the securities have been issued by the issuer in the primary market, it gets traded in the secondary market among the investors. In this market, investors trade the previously issued securities among themselves without the involvement of the issuer of security (company). Example, Bombay Stock Exchange. In the securities example, the market in which the investors started buying and selling the bonds among themselves is a secondary market.• 2.”
Why relevant

Defines the secondary market where investors trade previously issued securities (including bonds) among themselves.

How to extend

A student could combine this with the fact that insurance companies are investors to infer they could participate in secondary trading of bonds and then check specific regulations.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.23 Foreign Investment > p. 97
Strength: 4/5
“If the warrant holder does not exercise his option to subscribe to equity shares, then the initial amount (some percent of the total amount paid by the warrant holder to purchase the warrant) paid stands forfeited.• Foreign investment can be broadly classified into two ways: • Foreign Direct Investment (FDI) is the investment through 'capital instruments' by a person resident outside India: • In an unlisted Indian company; or• In 10 percent or more of the equity capital of a listed Indian company• Foreign Portfolio Investment (FPI) is any investment made by a person resident outside India in 'capital instruments' where such investment is less than 10 percent of the equity capital of a listed Indian company.• Foreign Portfolio Investors (FPIs) can also invest in Central and State Government securities/bonds and corporate bonds and are treated as debt.• Foreign Direct Investment can come through two routes viz. automatic and government approval route.”
Why relevant

States that Foreign Portfolio Investors can invest in Central and State Government securities/bonds and corporate bonds and are treated as debt.

How to extend

Use this as a pattern that regulators permit institutional/portfolio investors to hold such bonds, then ask whether domestic institutional investors (like insurers) are similarly classified.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.6 Corporate Bond Market in India > p. 49
Strength: 4/5
“requirements of the corporate entities are large. The development of a corporate bond market has now become crucial especially, in view of the need for raising large amount of resources for infrastructure development in the country during the next couple of years. Following are the factors responsible for the slow growth of corporate bond market in India. • There are only a few corporate entities which are capable of meeting investor requirements in terms of transparency and governance standards. This has resulted in a yawning gap between demand for and supply of corporate bonds in India.”
Why relevant

Describes the existence and importance of a corporate bond market in India and demand/supply factors for corporate bonds.

How to extend

A student can infer that a domestic investor base (including insurance companies) is needed for this market, motivating checking whether insurers are allowed to invest/trade in corporate bonds.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 14: Service Sector > SERVICE SECTOR > p. 423
Strength: 3/5
“Introduction Insurance Sector Life Insurance Corporation General Insurance Corporation Agriculture Insurance Company of India Limited Deposit Insurance and Credit Guarantee Corporation (DICGC) Insurance Reforms Insurance Schemes Backed by Government Tourism Sector Medical Tourism, Eco-tourism, Information Technology and Business Process Management Services, India BPO Promotion Scheme, Communication Sector, Logistic Sector, Port and Shipping Services, Space Sector, Real Estate Sector”
Why relevant

Lists the insurance sector and major insurance entities, establishing insurers as organised, regulated financial players.

How to extend

Combining insurer institutional status with the secondary market rule (snippet 10) suggests insurers are plausible participants in bond markets, warranting looking up their investment permissions.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.5 Government Securities > p. 47
Strength: 3/5
“increased by the inflation index and the interest is offered on the increased principle. • Special Securities: Under the market borrowing program, the Government of India also issues, from time to time, special securities to entities like Oil Marketing Companies, Fertilizer Companies, the Food Corporation of India, etc. (popularly called oil bonds, fertiliser bonds and food bonds respectively) as compensation to these companies in lieu of cash subsidies.• Bank recapitalization bonds: Government of India has also issued Bank Recapitalisation Bonds to specific Public Sector Banks in 2018. (Discussed in detail in bank recapitalization)• Sovereign gold bonds (SGB): SGBs are unique instruments, prices of which are linked to commodity price viz Gold.”
Why relevant

Explains various types of government securities issued by the Government of India (e.g., special securities, bonds).

How to extend

Knowing what government securities exist lets a student identify the instruments insurers might hold and then verify regulatory permissions for insurers to invest in those specific instruments.

Statement 2
In India, are pension funds permitted to trade in corporate bonds and government securities?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"The fund is invested by the selected Pension Fund Manager in the various classes of securities, as per the investment guidelines prescribed by PFRDA. The investment is usually in Equity (E), Corporate Bonds (C) and /or Government Securities (G)."
Why this source?
  • Explicitly states how pension fund managers invest pension funds under PFRDA guidelines.
  • Specifically lists Corporate Bonds (C) and Government Securities (G) as usual investment classes alongside Equity (E).
Web source
Presence: 3/5
"Pension Funds- Appointed to invest the Pension Fund contribution of all the subscribers in various schemes."
Why this source?
  • Describes the role of Pension Funds as entities appointed to invest subscribers' pension contributions.
  • Establishes that pension funds are active investors responsible for placing contributions into permitted investment schemes.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.8 National/New Pension System (NPS) > p. 268
Strength: 4/5
“• National Pension System (NPS) is a pension cum investment scheme launched by Government of India to provide old age security to Citizens of India. The Scheme is administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA) set up under PFRDA Act, 2013. National Pension System Trust (NPST) established by PFRDA is the registered owner of all assets under NPS.• NPS is broadly classified into two categories:”
Why relevant

Defines the National Pension System (NPS) and notes that assets under NPS are held by a registered trust (PFRDA/NPST), implying a regulated pension-investment vehicle exists.

How to extend

A student could look up PFRDA/NPST investment guidelines to see which asset classes (e.g., government securities, corporate bonds) that regulated pension funds may be allowed to hold.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Mutual Funds > p. 269
Strength: 4/5
“Financial Market 8.13 There are various types of mutual funds such as: • Equity funds: These funds or schemes invest their entire money in the shares/equities of 1. companies listed in the stock exchanges. There are varieties in equity depending on the market capitalisation of the company like multi-cap, large cap, mid cap and small cap funds. • Debt or fixed income funds: These funds invest in bonds issued by the Central 2. Government, State Governments, PSUs, corporates, NBFCs, etc.”
Why relevant

Explains that 'Debt or fixed income funds' invest in bonds issued by the Central Government, State Governments, PSUs and corporates, showing these instrument types are standard, regulated investments in Indian financial markets.

How to extend

A student can reason that since debt instruments are standard regulated assets for institutional funds, pension funds might also be permitted to hold similar debt instruments and should verify specific pension rules.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.5 Government Securities > p. 47
Strength: 3/5
“increased by the inflation index and the interest is offered on the increased principle. • Special Securities: Under the market borrowing program, the Government of India also issues, from time to time, special securities to entities like Oil Marketing Companies, Fertilizer Companies, the Food Corporation of India, etc. (popularly called oil bonds, fertiliser bonds and food bonds respectively) as compensation to these companies in lieu of cash subsidies.• Bank recapitalization bonds: Government of India has also issued Bank Recapitalisation Bonds to specific Public Sector Banks in 2018. (Discussed in detail in bank recapitalization)• Sovereign gold bonds (SGB): SGBs are unique instruments, prices of which are linked to commodity price viz Gold.”
Why relevant

Describes various types of government securities (special securities, bank recapitalisation bonds, sovereign gold bonds), indicating an established market and variety of government debt instruments.

How to extend

Knowing there is a structured government securities market, a student could check whether regulated institutional investors (including pension funds) participate in this market under domestic regulations.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.6 Corporate Bond Market in India > p. 49
Strength: 3/5
“Efforts are being made by the Government to create a vibrant, dynamic, and deep corporate debt/bond market in the country. The following are few steps in this direction. • Government, in consultation with RBI, has raised the Foreign Portfolio Investors (FPI) ceiling limit to 15% from the present 9% in corporate bonds. This means that whatever value of total corporate bonds are outstanding (presently issued), 15% could be held by FPIs.• Government is framing an investor charter that would focus on the rights and responsibilities of investors and a grievance redressal mechanism.”
Why relevant

Discusses efforts to develop the corporate bond market and regulatory actions (e.g., FPI limits), indicating corporate bonds are a recognized asset class with defined participation rules.

How to extend

A student could extend this to ask whether domestic institutional investors such as pension funds are listed among typical eligible holders in corporate bond regulations (or consult PFRDA rules).

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 16: Terminology > 16 Terminology > p. 458
Strength: 2/5
“Mutual funds give small or individual investors access to professionally managed portfolios of equities, bonds, and other securities. Each shareholder, therefore, participates proportionally in the gains or losses of the fund.• National Small Savings Funds (NSSF): A fund established in 1999 under Public Account of India. The receipts under various small savings schemes like Public Provident Fund (PPF), Post office deposit schemes, Sukanya Samridhi Scheme etc. goes into this fund.• Negative Consensus: Under the Dispute Settlement Body of WTO, the decision of WTO panel can be rejected only by a negative consensus i.e. all member-countries present have to turn down the ruling.• Non-Convertible Debentures (NCD): Non-convertible debentures (NCDs) are financial instruments that are issued by companies to raise medium to long-term capital.”
Why relevant

States that mutual funds give access to professionally managed portfolios of equities, bonds and other securities, showing that pooled/regulated investment vehicles routinely include bonds.

How to extend

Compare the permitted asset mix for mutual funds with that for pension funds (NPS) to infer whether bonds are commonly authorized for regulated institutional investors and then check pension-specific rules.

Statement 3
In India, are retail investors permitted to trade in corporate bonds and government securities?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > Retail Direct Scheme (of RBI): > p. 47
Presence: 5/5
“• Retail individual investors will be able to open a Retail Direct Gilt (RDG) Account with the RBI.• Retail individual investors will be able to purchase Govt. securities in the primary market directly as well as in the secondary market. [But still, they cannot participate in the competitive bidding process].• Retail investors can purchase Central Government Securities (Treasury Bills and Dated Securities), State Govt.”
Why this source?
  • Specifies a Retail Direct Gilt (RDG) account allowing retail individual investors to purchase central and state government securities in primary and secondary markets.
  • Explicitly states retail investors can buy Treasury Bills and dated government securities (with the single restriction on competitive bidding).
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.6 Corporate Bond Market in India > p. 49
Presence: 4/5
“Corporate governance and disclosure standards available do not provide enough confidence to investors to go in for investments in bonds unlike banks.• Public offering of bonds (the process) being expensive, time consuming and procedure oriented, corporates have been finding it easier to either borrow from banks or make a private placement (to few select investors rather than to general public/investor) of their bonds.• Non availability of bankruptcy laws to ensure investor protection has also contributed towards slow development of the corporate bond market (with the coming of IBC 2016 this challenge has now been resolved). • Building the infrastructure required for a well-developed bond market is subject to significant time and resource costs which India has not put till now.”
Why this source?
  • Explains corporate bond market dynamics where public offerings are costly and firms prefer private placements to select investors rather than the general public.
  • Implies limited retail participation in corporate bonds because private placements restrict access and governance/disclosure concerns deter broad retail investment.
Pattern takeaway: UPSC Economy questions often test 'Permissibility' (Can X do Y?). In financial markets, unless there is a specific, famous prohibition (e.g., Payment Banks cannot lend), the trend is towards inclusion. If an entity manages money, it generally has access to the bond market.
How you should have studied
  1. [THE VERDICT]: Sitter. The 'RBI Retail Direct Scheme' (allowing retail in G-Secs) was a headline reform in 2021-22. Standard books (Vivek Singh) covered it explicitly.
  2. [THE CONCEPTUAL TRIGGER]: Financial Markets > Debt Market Participants. Specifically, the transition from 'Wholesale only' to 'Retail access'.
  3. [THE HORIZONTAL EXPANSION]: 1. NDS-OM (The platform retail now accesses). 2. Competitive vs Non-Competitive Bidding (Retail uses Non-Competitive). 3. Voluntary Retention Route (VRR) for FPIs in debt. 4. Difference between T-Bills (Central only) and Dated Securities (Central + State). 5. Masala Bonds (Rupee denominated abroad).
  4. [THE STRATEGIC METACOGNITION]: When a new scheme launches (e.g., Retail Direct), ask: 'Who was allowed before this?' (Banks, PDs, Insurance, Pension). The question simply aggregated the 'New Entrant' (Retail) with the 'Old Giants' (Insurance/Pension).
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 Government securities (G‑Secs) and their varieties
💡 The insight

Understanding types of government securities and special issues is central to questions about who can hold or trade sovereign debt.

High-yield for UPSC because G‑Secs are integral to public finance, debt management and monetary operations; mastery helps answer questions on government borrowing, market instruments and institutional investors. Connects to topics on fiscal policy, RBI operations and capital markets, enabling answers on debt issuance, investor base and market inclusion.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.5 Government Securities > p. 47
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > Indian Govt. securities will very soon join Global Bond Index > p. 48
🔗 Anchor: "In India, are insurance companies permitted to trade in corporate bonds and gove..."
📌 Adjacent topic to master
S1
👉 Corporate bond market structure and constraints
💡 The insight

Knowledge of the corporate bond market's development, investor requirements and limitations helps evaluate participation by institutional investors.

Important for questions on infrastructure financing and capital markets reform; links to banking, financial regulation and capital formation. Helps frame answers on impediments to bond market growth, investor suitability and measures to deepen debt markets.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.6 Corporate Bond Market in India > p. 49
🔗 Anchor: "In India, are insurance companies permitted to trade in corporate bonds and gove..."
📌 Adjacent topic to master
S1
👉 Insurance sector regulation and foreign investment rules
💡 The insight

Regulatory structure and FDI policy in insurance shape the capabilities and permitted activities of insurance companies in financial markets.

Crucial for public policy and economic governance questions involving sectoral regulation, ownership norms and market access. Connects to financial sector reforms, role of institutional investors and implications of FDI limits on market behavior.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 14: Service Sector > W History and Background > p. 424
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > 7.13 FDI in Insurance > p. 244
🔗 Anchor: "In India, are insurance companies permitted to trade in corporate bonds and gove..."
📌 Adjacent topic to master
S2
👉 National Pension System (NPS) & PFRDA
💡 The insight

NPS is India’s pension-cum-investment scheme administered by PFRDA and holds assets on behalf of subscribers, so understanding its structure is central to questions about pension fund investment activity.

High-yield for public policy and economic governance questions: connects social security design with financial market participation, regulatory frameworks, and public finance. Mastering this helps answer questions on pension reform, institutional investors, and asset ownership rules.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.8 National/New Pension System (NPS) > p. 268
🔗 Anchor: "In India, are pension funds permitted to trade in corporate bonds and government..."
📌 Adjacent topic to master
S2
👉 Debt or fixed-income funds and their instruments
💡 The insight

Debt funds invest in bonds issued by central and state governments, PSUs, corporates and NBFCs, which maps directly onto the instruments (government securities and corporate bonds) referenced in the statement.

Important for finance and economy topics: clarifies what instruments institutional investors target, aids in comparing mutual funds, pension funds and other intermediaries. Useful for questions on bond markets, fiscal management, and portfolio allocation.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Mutual Funds > p. 269
🔗 Anchor: "In India, are pension funds permitted to trade in corporate bonds and government..."
📌 Adjacent topic to master
S2
👉 Regulation of foreign investment in corporate bonds
💡 The insight

There are explicit caps and regulatory rules governing how much foreign investors can hold in corporate bonds, highlighting that bond-market participation is subject to regulatory limits.

Helps tackle questions on capital flow management and bond-market liberalisation: links regulatory ceilings, FPIs, and market access policies. Useful for essays and prelims/GS papers on external-sector regulation and financial markets.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.6 Corporate Bond Market in India > p. 49
🔗 Anchor: "In India, are pension funds permitted to trade in corporate bonds and government..."
📌 Adjacent topic to master
S3
👉 Retail Direct Gilt (RDG) access to government securities
💡 The insight

Retail Direct Gilt accounts let individual investors directly buy central and state government securities in primary and secondary markets.

High-yield for UPSC answers on public debt market reforms and retail participation; links to RBI regulation, government borrowing and investor access. Enables answers on recent financial inclusion measures and market infrastructure changes.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > Retail Direct Scheme (of RBI): > p. 47
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 3. Regulation of Foreign Exchange Market, Govt. Securities Market and Money Market > p. 68
🔗 Anchor: "In India, are retail investors permitted to trade in corporate bonds and governm..."
🌑 The Hidden Trap

The 'Non-Competitive Bidding' Trap. While Retail Investors *can* now buy G-Secs, they participate in the 'Non-Competitive' segment of the primary auction (they take the price determined by big players). A future statement might trick you by saying 'Retail investors participate in competitive bidding for G-Secs.'

⚡ Elimination Cheat Code

Use 'Business Model' Logic. Insurance Companies and Pension Funds collect money today to pay out 20-30 years later. They *must* park this capital in long-term, safe, interest-bearing assets. Corporate Bonds and G-Secs are the *only* asset classes that fit this need perfectly. Therefore, 1 and 2 must be correct.

🔗 Mains Connection

Mains GS-3 (Fiscal Policy): Why does the Govt want Retail/Pension money in bonds? To broaden the 'Borrowing Base'. A wider base reduces the 'Yield' (interest cost) for the Govt, helping manage the Fiscal Deficit and reducing reliance on Banks (leaving banks free to lend to private sector -> preventing Crowding Out).

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SIMILAR QUESTIONS

IAS · 2021 · Q23 Relevance score: 3.97

With reference to India, consider the following statements : 1. Retail investors through demat account can invest in 'Treasury Bills' and 'Government of India Debt Bonds' in primary market. 2. The Negotiated Dealing System-Order Matching' is a government securities trading platform of the Reserve Bank of India. 3. The 'Central Depository Services Ltd.' is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange. Which of the statements given above is/are correct?

IAS · 2025 · Q2 Relevance score: -0.15

Which of the following are the sources of income for the Reserve Bank of India? I. Buying and selling Government bonds II. Buying and selling foreign currency III. Pension fund management IV. Lending to private companies V. Printing and distributing currency notes Select the correct answer using the code given below.

IAS · 2008 · Q97 Relevance score: -1.15

Which of the following are the public sector undertakings of the Government of India? 1. Balmer Lawrie and Company Ltd. 2. Dredging Corporation of India. 3. Educational Consultants of India Ltd. Select the correct answer using the code given below: Code:

CDS-I · 2012 · Q6 Relevance score: -1.38

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 :