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Question No. 297Interactive Test Mode
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Q297. 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 :

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 :
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

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Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2024 • Indian Economy

Correct Answer: Option (D) — 1, 2 and 3

Concept & Option Breakdown

Standard Reference Verified

Statement 1 is correct: Insurance companies are permitted by the Insurance Regulatory and Development Authority of India (IRDAI) to invest and trade in government securities and corporate debt instruments subject to investment guidelines.

Statement 2 is correct: Pension funds governed by the Pension Fund Regulatory and Development Authority (PFRDA), including the National Pension System (NPS), actively invest in both Government Securities (G-Secs) and corporate debt.

Statement 3 is correct: Retail investors can directly participate in the G-Sec market via the RBI Retail Direct Scheme and can trade corporate bonds on the debt segments of stock exchanges (BSE and NSE) or through debt mutual funds.

Elimination Heuristic & Exam Approach

In permissive regulatory questions regarding financial asset trading ('who can trade...'), regulatory frameworks in modern open financial systems generally permit all these major investor categories to access government debt and corporate bonds.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2024 (Q297)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (D) — 1, 2 and 3

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Frequently Asked Questions — UPSC Prelims 2024 Q297

What is the official answer for UPSC Prelims 2024 GS Paper I Question 297 (Indian Economy)?

The official UPSC answer key for this 2024 Indian Economy (Indian Economic Planning & Growth) question is Option (D): "1, 2 and 3". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2024 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

In permissive regulatory questions regarding financial asset trading ('who can trade...'), regulatory frameworks in modern open financial systems generally permit all these major investor categories to access government debt and corporate bonds.

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