In connection with SEBI, which of the following statement / statements is/are valid?

I. SEBI exempted regulations for Infrastructure Investment Trusts (InvITs) and Muncipal Bonds in order to facilitate more efficient infrastructure financing through the capital markets.

II. SEBI introduced the framework in which listed large corporates will mandatorily meet 25% of their financing requirements through the issuance of debt securities.

III. SEBI increased the minimum ticket size of corporate bond investment in order to encourage investor responsibility.

IV. SEBI along with the RBI introduced the Retail Direct Scheme.

Select the correct answer using the codes given below:

Key Points

• SEBI (Securities and Exchange Board of India) is the regulator for the securities market in India.
• Statement I is incorrect: SEBI has not exempted regulations for Infrastructure Investment Trusts (InvITs) and Municipal Bonds specifically for infrastructure financing.
• Statement II is correct: SEBI introduced the framework mandating that listed large corporates meet 25% of their financing requirements through the issuance of debt securities.
• Statement III is incorrect: SEBI has not increased the minimum ticket size of corporate bond investment to encourage investor responsibility.
• Statement IV is incorrect: The Retail Direct Scheme was introduced by the RBI.

Additional Information

• SEBI (Securities and Exchange Board of India)
  • SEBI was established in 1988 and given statutory powers on 12 April 1992 through the SEBI Act, 1992.
  • It is responsible for regulating the securities market and protecting the interests of investors in securities.
  • SEBI's functions include regulating stock exchanges, ensuring fair trading practices, and monitoring and regulating mutual funds.
• Infrastructure Investment Trusts (InvITs)
  • InvITs are instruments that work like mutual funds and are designed to pool small sums of money from a number of investors to invest in assets that give cash flow over a period of time.
  • InvITs are regulated by SEBI and provide a way for investors to invest in infrastructure projects.
• Municipal Bonds
  • Municipal bonds are debt securities issued by local government authorities or their agencies.
  • The funds raised through these bonds are used to finance public projects such as roads, schools, and infrastructure development.
  • These bonds offer a way for municipalities to raise capital for development projects.
• Retail Direct Scheme
  • The Retail Direct Scheme was launched by the Reserve Bank of India (RBI) to facilitate investment in government securities by retail investors.
  • Under this scheme, retail investors can open and maintain a Retail Direct Gilt (RDG) account with RBI.
  • It aims to provide an easy and direct platform for investors to participate in the government securities market.