n NISM Certifications
X NISM Series X
Medium

Regarding the Corporate Bond market in India, which statement is correct?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Only mutual funds and retail investors can hold corporate bonds

  2. Institutional investors are the largest investors

    Correct answer

  3. C

    Retail investors dominate the market

  4. D

    Financial institutions are not permitted to invest

Why this is the answer

Corporate bonds are primarily held by institutional investors, with retail participation being relatively small.

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