Which of the following state- ments is/are correct ? 1. NIFTY is based upon 50 firms in India. 2. NIFTY is governed and regulated by the Reserve Bank of India. 3. NIFTY does not trade in mutual funds. Select the correct answer using the codes given below :

Statement 1 is correct as the NIFTY 50 is a benchmark stock market index representing the weighted average of 50 of the largest and most liquid Indian companies listed on the National Stock Exchange (NSE) [3]. Statement 2 is incorrect because NIFTY is owned and managed by NSE Indices Limited, a subsidiary of the NSE [3]. While the Reserve Bank of India (RBI) regulates the money market and banking, the Securities and Exchange Board of India (SEBI) is the primary regulator for stock exchanges, indices, and the capital market in India [1]. Statement 3 is incorrect because NIFTY is extensively used as a benchmark for various financial products, including mutual funds (index funds) and Exchange Traded Funds (ETFs), which actively trade and track the index's performance. Therefore, only the first statement is accurate.

Sources

1. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > National Stock Exchange > p. 276
2. [3] https://www.sebi.gov.in/sebi_data/attachdocs/1385619871090.pdf
3. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > P Functions of SEBI > p. 274