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      Question

      Under Section 45Y of the RBI Act, 1934, who is the ex

      officio Chairperson of the Joint Committee constituted to resolve differences regarding hybrid or composite instruments?
      A The Governor of the Reserve Bank of India Correct Answer Incorrect Answer
      B The Cabinet Secretary Correct Answer Incorrect Answer
      C The Secretary, Department of Economic Affairs Correct Answer Incorrect Answer
      D The Chairman, Securities and Exchange Board of India Correct Answer Incorrect Answer
      E The Union Finance Minister Correct Answer Incorrect Answer

      Solution

      Section 45Y, under Chapter IIIE dealing with the Joint Mechanism, provides that differences of opinion as to whether an instrument is hybrid or composite shall be referred to a Joint Committee. Under Section 45Y(1)(a), the Union Finance Minister is the ex officio Chairperson, and the Governor of the Reserve Bank of India is the ex officio Vice-Chairperson. The decision of the Joint Committee is binding on RBI, SEBI, IRDA and PFRDA. The ex officio Chairperson is the Union Finance Minister.

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