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Consider the following statements:
1. The Discount and Finance House of India Limited (DFHI) was established by the RBI jointly with public sector banks and financial investment institutions.
2. NBFCs were put under the regulatory control of the RBI in the mid-1980s.
3. Mutual funds in India are regulated solely by the RBI.
Which of the statements given above is/are correct?
  • a)
    1 Only
  • b)
    1 and 2 Only
  • c)
    1 and 3 Only
  • d)
    1, 2 and 3
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Consider the following statements:1. The Discount and Finance House of...
- Statement 1: The Discount and Finance House of India Limited (DFHI) was indeed set up in April 1988 by the RBI jointly with public sector banks and financial investment institutions (such as LIC, GIC, and UTI). This statement is correct.
- Statement 2: NBFCs were actually put under the regulatory control of the RBI in 1997, not in the mid-1980s. Hence, this statement is incorrect.
- Statement 3: Mutual funds in India are regulated by both the RBI and SEBI, with SEBI being the primary regulator. This statement is incorrect.
Thus, only statement 1 is correct. Therefore, the correct answer is Option A: 1 Only.
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Most Upvoted Answer
Consider the following statements:1. The Discount and Finance House of...
Explanation:

Discount and Finance House of India Limited (DFHI)
- The Discount and Finance House of India Limited (DFHI) was established by the RBI jointly with public sector banks and financial investment institutions.
- It was incorporated in April 1988 to develop the money market in India and provide liquidity to money market instruments.

Regulatory Control of NBFCs
- NBFCs were put under the regulatory control of the RBI in the mid-1980s.
- The Reserve Bank of India (RBI) regulates and supervises the Non-Banking Financial Companies (NBFCs) in India to ensure financial stability and consumer protection.

Regulation of Mutual Funds
- Mutual funds in India are regulated by the Securities and Exchange Board of India (SEBI) and not solely by the RBI.
- SEBI is the regulatory body for the securities market in India and regulates the mutual fund industry to protect the interests of investors and promote transparency and accountability.
Therefore, only statement 1 is correct as DFHI was established by the RBI jointly with public sector banks and financial investment institutions. Statements 2 and 3 are incorrect as NBFCs were put under the regulatory control of the RBI, not in the mid-1980s, and mutual funds in India are regulated by SEBI, not solely by the RBI.
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Consider the following statements:1. The Discount and Finance House of India Limited (DFHI) was established by the RBI jointly with public sector banks and financial investment institutions.2. NBFCs were put under the regulatory control of the RBI in the mid-1980s.3. Mutual funds in India are regulated solely by the RBI.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer?
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