Explanation:

The derivative markets have started the process of moving from cash settlement to physical settlement, following the criteria specified in the relevant SEBI circulars.

Explanation:

Financial institutions may issue equity or debt securities to fulfill their capital needs beyond the typical funding sources of deposits and government grants. The correct option is “Only 2 & 3,” which includes financial institutions and banks.

Explanation:

Certificates of Deposit (CDs) are issued by banks, non-banking finance companies, and financial institutions, which makes option (b) the correct answer. These financial instruments represent time deposits with fixed interest rates and specified maturity dates, allowing institutions to raise short-term funds from the market.

Explanation:

The correct answer is “Only 1 & 3,” as these are the common types of margins collected in the futures market. The initial margin is the upfront amount required, and the exposure margin is collected based on the potential exposure of the position.

Explanation:

An open-ended equity scheme investing in line with an investment theme such as housing or infrastructure is categorized as a Thematic Fund. Thematic funds focus on specific investment themes or sectors, aligning their portfolio with a particular trend or idea.

Explanation:

An open-ended scheme investing in equity, arbitrage, and debt is known as an Equity Savings Fund. Equity Savings Funds typically allocate their assets among equity, arbitrage opportunities, and debt instruments, offering a balanced approach to investors.

Explanation:

Systematic Transfer Plans (STP) permit investors to periodically transfer a specified sum from one scheme to another within the same fund house. STP allows investors to manage their investments by systematically moving funds between different schemes based on their financial objectives and market conditions.

Explanation:

Professional Clearing Members (PCMs) are entities that function as clearing members but not as trading members. They are typically banks or custodians that exclusively perform clearing functions.

Explanation:

Exchange Traded Funds (ETFs) combine features of an open-ended fund and a stock. ETFs are traded on stock exchanges like individual stocks, but they represent a diversified portfolio of assets similar to open-ended mutual funds.

Explanation:

Units are only issued in domestic markets. Therefore, option (c) is the correct answer. Units typically refer to units of mutual funds or other investment schemes that are offered and traded in the domestic market.