Correct option is D
Statement 1 is incorrect.
The Liquidity Adjustment Facility (LAF) window of the Reserve Bank of India (RBI) is primarily accessible to Scheduled Commercial Banks (SCBs) and Primary Dealers (PDs). Non-Banking Financial Companies (NBFCs) generally do not have direct access to the LAF window. They usually rely on other sources of funding, including market borrowings, bank loans, and other financial institutions.
Statement 2 is correct.
Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) are allowed to invest in Government Securities (G-Secs) in India. The RBI and the government set limits on the total amount of G-Secs that can be held by foreign investors to manage external exposure and maintain financial stability.
Statement 3 is correct.
In India, stock exchanges such as the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) offer separate trading platforms for debt securities. These platforms allow the trading of corporate bonds, government bonds, and other debt instruments. For example, BSE's Debt Market segment and NSE's NDS-OM platform (Negotiated Dealing System-Order Matching) cater specifically to the debt market.
