CBSE 2021 Class 12 Economics Term 1 Paper

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Question : 25
Total: 60
SECTION-B
Consider the following statements about 'Portfolio Investments in India' and choose the correct alternative:
(i) Investments by a foreign company to start its subsidiary company in India.
(ii) Investments by a foreign company to acquire some company in India.
(iii) A foreign investor buying shares in Indian markets.
(iv) A foreign investor buying Goods in Indian markets.
Solution:  
(c) (iii) only
Explanation: Portfolio investment scheme (PIS). developed by RBI, allows eligible entities such as foreign institutional investors. Non resident Indians. Persons of Indian origin and qualified foreign investors to invest in stock and convertible debentures of Indian companies.
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