Official Answer Key & Detailed Solution
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Correct Answer: Option (D) — 1, 2 and 3
Concept & Option Breakdown
Standard Reference VerifiedStatement 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.
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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