Multiple choice

Lahiri Committee Recommendation relates to which of the following?

  1. Issue of units by Mutual Funds

  2. Issue of Depository Receipts

  3. Issue of Participation Certificates by Banks

  4. Issue of Participatory notes by FIIs
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

During the UPA government’s tenure, a committee headed by the then Chief Economic Advisor, Ashok Lahiri, released a report in November 2005 on encouraging FII flows and checking the vulnerability of capital markets to speculative flows. On recommendation from Lahiri Committee, in 2004, it passed a regulation that derivative instruments like PNs against underlying Indian securities can be issued only to regulated entities and further transfers, if any, can also be to other regulated entities only.

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