Question

Read the given text carefully:

“The Government has now decided to further promote the development of mutual funds by throwing the field open to the private sector and joint sector mutual funds. In order to safeguard the interests of the investing public, and to encourage a healthy growth of the capital markets, a comprehensive set of guidelines is being evolved for the operation of all mutual funds.”

Identify the sector under which the aforesaid reform was introduced and choose the correct option.

Options

• Industrial

• Financial

• Tax

• Foreign Trade

Answer 1

Financial

Explanation:

The financial sector promotes and regulates mutual funds. This step aimed to liberalise the financial system by allowing involvement from the private and joint sectors, assuring investor protection, and encouraging capital growth.