In recent times, India has been one of the most favourite equity market for the foreign institutional investors (FII). A Foreign Institutional Investor is allowed to invest in India in__:

  1. Primary Markets
  2. Secondary Markets
  3. Treasury Bills

Select the correct option from the codes given below:

Answer: [A] Only 1 & 2

FIIs are not allowed to invest in primary as well as secondary markets in India. In 2014, RBI had prohibited the FIIs from investment in T-Bills in India to save them from interest rate volatility.

This question is a part of GKToday's Integrated IAS General Studies Module