23.18 ndian onom
autonomy in areas of critical importance, AIFs with ‘positive spill over effects’ on
similar to many Western economies. It the economy, for which certain incentives
is believed that it has been given a kind or concessions might be considered by
of working autonomy in the area of SEBI or the GoI or other regulators
making and announcing the Credit and in India, which shall include Venture
Monetary Policy (though there is no Capital Funds, SME Funds, Social Venture
change in the official stand hitherto). Funds, Infrastructure Funds and such
15. (d) Since market makers quote two-way other Alternative Investment Funds(AIFs)
prices for securities, they seem to ‘make’ as may be specified.
market for the concerned securities. The 20. (a) Standard Chartered Bank is the only
OTCEI is modelled on the NASDAQ of company which has issued IDRs in
the USA for listing of SMEs, which face India. In May 2010 it raised Rs. 2,500
lesser liquidity in their share transactions. crore through this route.
The DFHI is a dedicated body for two 21. (d) This is one of the clauses of the Basel
transactions in the money market of III norms (of the Basel based Bank for
India, operating since 1988. International Settlement) aimed at
16. (d) All the statements are correct. In case prudential regulation of the banking
of India’s agricultural commodities, sector. Banks are supposed to maintain
such trading doesn’t seem functioning sufficient long-term (one year) liquidity
well because other related institutional under it so that they could be sure of stable
developments have not happened in time source of fund in times of financial stress
and farmers are not yet active players on if such situations arise in the economy.
the commodity exchanges of India (partly 22. (d) As per the new policy announced by the
due to operational difficulties, smaller Government in 2016–17, any amount
capital base and lack of knowledge). of shares can be sold in the public sector
Once big farmers (contract/corporate undertakings (PSUs). Disinvestment is
farmers) emerge, it will start functioning now seen as the part of ‘comprehensive
management of Government’s
in a better way for such commodities.
investment in the PSUs’.
17. (d) Other routes of raising capital from the
23. (d) Capital consumption is the other term
primary market are: (a) Public Issue and
for ‘depreciation’. In the process of
(b) Rights Issue.
their uses fixed assets depreciate (go for
18. (d) All the options are correct. wear and tear) at the rate decided by
19. (d) Such investors are usually found among the government of the economy—the
an entrepreneur’s family and friends, but rates for the same assets may vary across
they may be from outside also providing economies.
financial backing to entrepreneurs In the new system of national income
for starting their business. The Union accounting it in written as CPC
Budget 2013–14 promised a provision (Consumption of fixed capital)–in use
for them. As per SEBI (Alternative since 2015–16 after the advice of the IMF.
Investment Funds) Regulations, 2012 (AIF 24. (d) Microfinance (MF) is a small-scale
Regulations), Category I AIF are those financial intermediation, inclusive of