Recently, RBI had announced that the government would be repurchasing the unsuccessful inflation indexed bonds (IIBs) maturing in 2023 through a reverse auction. Which of the following statements is/are correct about Inflation Indexed Bonds (IIBs) in India?

  1. IIBs are auctioned directly by RBI.
  2. IIBs are traded in primary as well as secondary market.
  3. Foreign institutional investors are not allowed to invest in IIBs.

Select the correct option from the codes given below:

Answer: [A] Only 1 & 2

Third statement is wrong because both foreign institutional investors and domestic investors are allowed to invest in IIBs.

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