[amp_mcq option1=”Both 1 and 2″ option2=”2, 3 and 4″ option3=”1, 2 and 3″ option4=”1, 3 and 4″ correct=”option2″]
The correct answer is: Both 1 and 2
Statement 1 is correct. Foreign institutional investors (FIIs) have been allowed to invest in mutual funds since 1993. FIIs are institutional investors that come from outside India and invest in Indian securities. They can invest in mutual funds directly or through the stock market.
Statement 2 is also correct. The main objective of the Securities and Exchange Board of India (SEBI) is to protect the interests of investors in securities and to promote the development of, and regulate, the securities market in India. SEBI does this by regulating the activities of stock exchanges, brokers, and other market participants.
Statement 3 is incorrect. Private placement is a method of raising capital by selling securities directly to a small number of investors, typically institutional investors. It is not a route through which promoter’s contribution is mobilised by a public company.
Statement 4 is correct. The Reserve Bank of India (RBI) is the central bank of India and is responsible for regulating the country’s financial system. The RBI lays down the guidelines governing the capital market operation, including the issuance of new securities, the trading of securities, and the settlement of transactions.
Therefore, the correct answer is: Both 1 and 2