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    Question

    As per the Securities Contracts (Regulation) Act (SCRA),

    1956, which of the following best describes the definition of government securities?
    A Bonds issued by private companies but backed by the government Correct Answer Incorrect Answer
    B Equity shares of government-owned enterprises Correct Answer Incorrect Answer
    C Tradable instruments issued by the central and state governments Correct Answer Incorrect Answer
    D Fixed deposits maintained with public sector banks Correct Answer Incorrect Answer
    E Short-term treasury bills issued by corporations Correct Answer Incorrect Answer

    Solution

    Under SCRA, government securities include tradable instruments like treasury bills and dated securities issued by central or state governments, considered risk-free due to sovereign backing.

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