Statement I: WTO is only international organisation which deals with the rules of trade between organisations. Statement II: The limit of holding by individual foreign institutional investors in a company has been raised from 5 to 10% of company’s share while the aggregate limit has been increased from 24 to 34%.

The correct answer is: A. Statement I is correct, but Statement II is incorrect

Statement I is correct because the World Trade Organization (WTO) is the only international organization that deals with the rules of trade between organizations. The WTO was established in 1995 and is headquartered in Geneva, Switzerland. It currently has 164 member countries. The WTO’s mission is to ensure that trade flows smoothly, freely, fairly and predictably. It does this by negotiating trade agreements, providing a forum for resolving trade disputes, and monitoring national trade policies.

Statement II is incorrect because the limit of holding by individual foreign institutional investors in a company has not been raised from 5 to 10% of company’s share. The current limit is 10%. The aggregate limit has been increased from 24 to 34%, but this is the aggregate limit for all foreign institutional investors, not for each individual investor.

The following are the reasons why Statement I is correct:

• The WTO is the only international organization that deals with the rules of trade between organizations.
• The WTO was established in 1995 and is headquartered in Geneva, Switzerland.
• The WTO currently has 164 member countries.
• The WTO’s mission is to ensure that trade flows smoothly, freely, fairly and predictably.
• The WTO does this by negotiating trade agreements, providing a forum for resolving trade disputes, and monitoring national trade policies.

The following are the reasons why Statement II is incorrect:

• The limit of holding by individual foreign institutional investors in a company has not been raised from 5 to 10% of company’s share.
• The current limit is 10%.
• The aggregate limit has been increased from 24 to 34%, but this is the aggregate limit for all foreign institutional investors, not for each individual investor.