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 secu

examrobotsa's picture

Submitted by examrobotsa on

Q: (IAS/2021)
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?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,116,77,34,116,18,25

keywords: 

{'reserve bank': [1, 0, 3, 4], 'bombay stock exchange': [0, 0, 1, 0], 'government securities trading platform': [0, 0, 0, 1], 'primary market': [0, 0, 0, 2], 'demat account': [0, 0, 0, 1], 'treasury bills': [0, 0, 0, 1], 'india debt bonds': [0, 0, 0, 1], 'retail investors': [0, 0, 0, 1], 'government': [5, 0, 0, 1]}

The correct answer is option 2: "1 and 2."

Here is why each statement is correct or incorrect:

Statement 1: Retail investors through demat account can invest in `Treasury Bills` and `Government of India Debt Bonds` in primary market.

This statement is true. Retail investors in India can indeed buy and sell Treasury Bills and Government of India Debt Bonds via their dematerialised (demat) account.

Statement 2: The “Negotiated Dealing System- Order Matching’ is a government securities trading platform of the Reserve Bank of India.

This statement is also true. The Negotiated Dealing System-Order Matching (NDS-OM) is a platform on which Government Securities are traded. It is an electronic system established and operated by the Reserve Bank of India.

Statement 3: The `Central Depository Services Ltd.` is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.

This statement is false. The Central Depository Services Ltd (CDSL) is not promoted jointly by the Reserve Bank of India and the Bombay Stock Exchange. It is primarily promoted by the Bombay Stock Exchange along with a group of leading banks in India.

Practice this on app