UPSC Exam > UPSC Questions > Consider the following statements with refere...
Start Learning for Free
Consider the following statements with reference to the Participatory Notes:
1. These are financial instruments used by investors to invest in the Indian securities.
2. These are issued by the Reserve Bank of India to overseas investors.
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Consider the following statements with reference to the Participatory ...
Foreign Portfolio Investors (FPIs) domiciled at the GIFT International Financial Services Centre (IFSC) and registered with the Securities and Exchange Board of India (SEBI) have been allowed to issue participatory notes.
- These are often referred to as PNs or P-Notes.
- These are financial instruments used by investors and hedge funds to invest in the Indian securities, and no registration is required with the Security Exchange Board of India (SEBI).
- Investments flowing in through PNs are considered as offshore derivative investments.
- These are issued by registered FPIs to overseas investors who wish to be part of the Indian stock market without registering themselves directly.
- While the FIIs have to report all such investments each quarter to SEBI, they need not disclose the identity of the actual investors.
What is Foreign Portfolio Investment?
- It refers to the purchase and holding of a wide array of foreign financial assets by investors seeking to invest in a country outside their own.
- Foreign portfolio investors have access to a range of investment instruments such as stocks, bonds, mutual funds, derivatives, fixed deposits, etc.
- FPI generally intends to invest money into the foreign country’s stock market to generate a quick return.
- In India, foreign portfolio investment is regulated by the Securities and Exchange Board of India (SEBI).
Hence only statement 1 is correct.
Free Test
FREE
| Start Free Test |
Community Answer
Consider the following statements with reference to the Participatory ...
Explanation:
Statement 1:These are financial instruments used by investors to invest in the Indian securities.
- Participatory Notes (PNs) are financial instruments used by foreign investors who are not registered with the Securities and Exchange Board of India (SEBI) to invest in Indian securities.
- These investors can invest in Indian stock markets through PNs without registering with SEBI.
- PNs are used by foreign institutional investors (FIIs) and foreign portfolio investors (FPIs) to invest in Indian markets.
Statement 2:These are issued by the Reserve Bank of India to overseas investors.
- This statement is incorrect. Participatory Notes are not issued by the Reserve Bank of India (RBI) or any other Indian regulatory authority.
- PNs are issued by registered foreign institutional investors or their sub-accounts to overseas investors who wish to invest in Indian securities.
- SEBI regulates the issuance and trading of PNs in India.
Therefore, only Statement 1 is correct, as Participatory Notes are financial instruments used by investors to invest in Indian securities without the need for registration with SEBI.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Top Courses for UPSCView all
Consider the following statements with reference to the Participatory Notes:1. These are financial instruments used by investors to invest in the Indian securities.2. These are issued by the Reserve Bank of India to overseas investors.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
Question Description
Consider the following statements with reference to the Participatory Notes:1. These are financial instruments used by investors to invest in the Indian securities.2. These are issued by the Reserve Bank of India to overseas investors.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements with reference to the Participatory Notes:1. These are financial instruments used by investors to invest in the Indian securities.2. These are issued by the Reserve Bank of India to overseas investors.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements with reference to the Participatory Notes:1. These are financial instruments used by investors to invest in the Indian securities.2. These are issued by the Reserve Bank of India to overseas investors.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?.
Consider the following statements with reference to the Participatory Notes:1. These are financial instruments used by investors to invest in the Indian securities.2. These are issued by the Reserve Bank of India to overseas investors.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements with reference to the Participatory Notes:1. These are financial instruments used by investors to invest in the Indian securities.2. These are issued by the Reserve Bank of India to overseas investors.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements with reference to the Participatory Notes:1. These are financial instruments used by investors to invest in the Indian securities.2. These are issued by the Reserve Bank of India to overseas investors.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?.
Solutions for Consider the following statements with reference to the Participatory Notes:1. These are financial instruments used by investors to invest in the Indian securities.2. These are issued by the Reserve Bank of India to overseas investors.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Consider the following statements with reference to the Participatory Notes:1. These are financial instruments used by investors to invest in the Indian securities.2. These are issued by the Reserve Bank of India to overseas investors.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Consider the following statements with reference to the Participatory Notes:1. These are financial instruments used by investors to invest in the Indian securities.2. These are issued by the Reserve Bank of India to overseas investors.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Consider the following statements with reference to the Participatory Notes:1. These are financial instruments used by investors to invest in the Indian securities.2. These are issued by the Reserve Bank of India to overseas investors.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Consider the following statements with reference to the Participatory Notes:1. These are financial instruments used by investors to invest in the Indian securities.2. These are issued by the Reserve Bank of India to overseas investors.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements with reference to the Participatory Notes:1. These are financial instruments used by investors to invest in the Indian securities.2. These are issued by the Reserve Bank of India to overseas investors.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup