- In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India.
- In India, Foreign Institutional Investors can hold the Government Securities (G-Secs).
- In India, Stock Exchanges can offer separate trading platforms for debts.
Explanation
All three statements regarding the financial regulatory framework in India are correct.
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Non-Banking Financial Companies (NBFCs) cannot access the Liquidity Adjustment Facility (LAF) directly; only Scheduled Commercial Banks and certain select financial institutions can do so.
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Foreign Institutional Investors (FIIs) are permitted to invest in Government Securities (G-Secs), thus contributing to the depth and liquidity of the Indian capital market.
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Indian Stock Exchanges are allowed to provide separate trading platforms for debt instruments, facilitating investment in fixed-income securities alongside equities. This multi-faceted approach in India’s financial system highlights the increasing role of various entities and structures in expanding investment avenues and maintaining market integrity.
However, just one of the statements being incorrect means the overall assertion that all three are correct is misleading. It's essential to understand the specific roles and regulations governing different financial institutions and instruments in India's economy for the UPSC prelims.