Question

Consider the following statements about the Indian capital market:
$1.$ Primary Market in India is mainly dealt in the new issues and debentures.
$2.$ Primary Market in India is supervised by the Insurance Regulatory Development Authority.
Which of the statements given above is/are correct?

• A. Only $1$
• B. Only $2$
• C. Both $1$ and $2$
• D. Neither $1$ nor $2$

Answer 1

The correct option is A Only $1$

The primary market is where the firms actually obtain resources to finance investment projects. In nutshell, primary market is that part of capital market where dealing exchange take place in the new capital issues (Initial Public Offerings (IPOs) by existing and new companies. Primary market is supervised by Securities Exchange Boards of India.