Economics · Financial Markets
Analyze the following statements regarding the secondary market for debt instruments and the corporate bond market in India: Statement I: Corporate bonds in India are primarily issued through the private placement route, and these trades must be reported on the reporting platforms of the stock exchanges (such as NSE-CBRICS or BSE-ICDM) within 15 minutes of the trade. Statement II: The Base Rate or MCLR of a bank is the benchmark used for pricing all corporate bonds issued by 'AAA' rated companies in the primary market. Statement III: Credit Default Swaps (CDS) are financial derivatives that allow a lender to hedge the credit risk of a corporate bond by paying a periodic premium to a protection seller. Statement IV: The Retail Direct Scheme launched by the RBI allows individual investors to directly invest in corporate bonds and equity shares through a single unified Gilt Account. Which of these statements are operationally valid?
- 1Statements I, II, and III are correct.
- 2Statements II, III, and IV are correct.
- 3Statements I and IV are correct.
- 4Statements I and III are correct.✓
Correct answer
Statements I and III are correct.
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