Security Market in India: UPSC Previous Year Questions (Indian Economy)
1 previous year UPSC Prelims question on Security Market in India (Indian Economy). Choose an option to see the answer and explanation.
Explanations state facts as of the year each question was asked; words like “recently” refer to that year.
Showing 1–1 of 1 question
UPSC 2007Indian Economy · Security Market in India
Q1. Participatory Notes (PNs) are associated with which one of the following?
Explanation
Participatory Notes (PNs) are financial instruments used by Foreign Institutional Investors (FIIs) to invest in Indian stock markets without direct registration with the Securities and Exchange Board of India (SEBI). These instruments allow overseas investors, including hedge funds, to gain exposure to Indian equities while bypassing regulatory procedures. PNs are issued by registered FIIs and sub-accounts against underlying Indian securities. While they provide easy access to foreign investment, concerns exist regarding lack of transparency and potential misuse for money laundering.As per SEBI regulations, efforts have been made to increase transparency and reduce misuse of PNs in India’s financial markets.
Answer key for these questions
Q
UPSC year
Correct answer
1
2007
(b) Foreign Institutional Investors
Frequently asked questions
How many previous year UPSC questions are there on Security Market in India?
This page covers 1 previous year UPSC Prelims GS Paper-I questions on Security Market in India (Indian Economy), asked from 2000 to 2025. Each has the correct answer and an explanation.
How should I use previous year UPSC questions for Prelims?
Attempt each question first, then open the answer and read the explanation for every option. Repeat by chapter, and track which statements UPSC reuses across years. Previous year questions show the exam pattern and difficulty level.
Which years are covered for Security Market in India?
Questions on Security Market in India (Indian Economy) are available for 15 years, from 2000 to 2025. Use the Year filter to practise a single paper.
