BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Securities Exchange Board of India
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ICICI Ltd
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IDBI Ltd
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Reserve Bank of India
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Detailed explanation-1: -In May 1994, STCI Finance Limited was promoted by RBI with the main objective of fostering an active secondary market in Government of India Securities and Public Sector bonds. RBI owned a majority stake of 50.18% in the paid up share capital of the company.
Detailed explanation-2: -COMPANY BACKGROUND. STCI Primary Dealer Limited (STCI PD) was set up as a wholly owned subsidiary of Securities Trading Corporation of India (STCI) in 2006. STCI was among one of the first Primary Dealers in the country set up in 1994 as a subsidiary of RBI.
Detailed explanation-3: -The STCI plays a role of market-maker in government securities and as such, it would strive to achieve large business turnover, rather than becoming a mere repository of the government securities. In doing so, the STCI would mainly be guided by commercial considerations.
Detailed explanation-4: -The RBI acts as a regulator and supervisor of the overall financial system. This injects public confidence into the national financial system, protects interest rates, and provides positive banking alternatives to the public. Finally, the RBI acts as the issuer of national currency.