Economics · Financial Instruments and Regulations
Which of the following statements regarding regulatory mechanisms and instruments within the Indian financial system is INCORRECT?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The yield on a Treasury Bill (T-Bill) in India is calculated using the formula: [(Face Value - Issue Price) / Issue Price] × [365 / Days] × 100.
- 2The Insurance Regulatory and Development Authority of India (IRDAI) de-tariffed all general insurance lines, including third-party motor insurance, as of 2007, making pricing entirely market-determined.✓
- 3In the regulatory three-tier structure of mutual funds in India, the Trust must be registered under the Indian Trusts Act, 1882, to hold fund assets on behalf of unit holders.
- 4For a corporate entity or Non-Banking Financial Company (NBFC) to raise short-term funds through Commercial Paper (CP), it must hold a minimum credit rating of A2+.
Correct answer
The Insurance Regulatory and Development Authority of India (IRDAI) de-tariffed all general insurance lines, including third-party motor insurance, as of 2007, making pricing entirely market-determined.
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