Financial System

Indian Economic System

Title

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Indian Economy - Understanding the basics of Indian economic system

Consider the following statements, with reference to corporate bonds

Corporate bonds are a form of debt issued by companies to raise capital.
Investors buying corporate bonds lend money to the company and receive interest payments.
Corporate bonds can be traded on the secondary market and are considered safer than government bonds.

How many of the statements given above are correct?

Only One

Only Two

All Three

None

Only statements 1&2 are correct.

Corporate Bond Market

Regulator: In India SEBI (Security Exchange Board of India), is the primary regulator of the corporate bond market.
As of September 2023, the government bond market size stands impressively at $1.3 trillion, with corporate bonds at $0.6 trillion.
However, Foreign Portfolio Investment (FPI) in these markets is relatively modest at $8.5 billion.
Corporate bonds are a form of debt issued by companies to raise capital.
Investors buying corporate bonds lend money to the company and receive interest payments.
Corporate bonds involve debt issued by companies, and they can be traded in secondary debt markets. As they are riskier than government bonds, corporate bonds carry higher interest rates.

Hence option 2nd is correct.

By: Shubham Tiwari