Question

    Who among the following participate in the Government

    Securities market?
    A Primary Dealers Correct Answer Incorrect Answer
    B Public Sector Banks Correct Answer Incorrect Answer
    C Private Sector Banks Correct Answer Incorrect Answer
    D Foreign Institutional Investors Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    Solution- Major players in the Government securities market include commercial banks and primary dealers besides institutional investors like insurance companies. Primary Dealers play an important role as market makers in Government securities market. Other participants include co-operative banks, regional rural banks, mutual funds, provident and pension funds. Foreign Institutional Investors (FIIs) are allowed to participate in the Government securities market within the quantitative limits prescribed from time to time. Corporates also buy/ sell the government securities to manage their overall portfolio risk.

    Practice Next

    Relevant for Exams: