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 :
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Answer: D. All three can trade in corporate bonds and government securities in India. Insurance companies and pension funds are large investors in both, as required by IRDAI and PFRDA investment rules. Retail investors can buy G-Secs through RBI Retail Direct and stock exchanges, and corporate bonds through exchanges and online bond platforms. So 1, 2 and 3.
Watch for: Students think bonds are only for big institutions, but RBI Retail Direct (2021) opened G-Secs to individuals.
Why the other options are wrong
- A. Wrong because retail investors can also trade in these securities.
- B. Wrong because insurance companies are major buyers of bonds and G-Secs.
- C. Wrong because pension funds also invest heavily in these securities.
Source to check: RBI Retail Direct Scheme (rbiretaildirect.org.in); SEBI circulars on Online Bond Platform Providers (2022)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.