Question
Which of the following is not a type of securities
market in India?Solution
The capital market in India comprises three types of securities markets - equity market, debt market, and derivatives market. The equity market, also known as the stock market, is where shares of publicly listed companies are traded. The debt market is where debt securities such as bonds, debentures, and commercial papers are traded. The derivatives market is where financial instruments such as futures and options contracts are traded. However, the foreign exchange market is not a type of securities market in India. It is a market where currencies of different countries are bought and sold. Hence, option D is correct.
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