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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Introduction to the Indian Financial Markets

Which of the following is regulated by the Reserve Bank of India as an instrument of the money market in India, rather than being primarily regulated by SEBI?

Call money market borrowing and lending among banks is regulated by the Reserve Bank of India. It is a core short-term money market segment. Listed shares, mutual fund units and listed corporate bonds are primarily regulated by SEBI, which is why they are not the correct choice.

  1. AEquity shares listed on the BSE
  2. BUnits of an equity mutual fund scheme
  3. CCall money market borrowing and lending among banksCorrect
  4. DCorporate bonds listed on a stock exchange

Explanation

The call/notice money market, where banks lend and borrow overnight and short-term funds, is regulated by the RBI. Listed equity shares, mutual fund units and listed corporate bonds fall under SEBI's regulation.

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