Question

Which is the odd one out?

• A. RBI
• B. SEBI
• C. LIC
• D. IRDA

Hint:

Three of the four are financial regulators; one of them is an insurance company that is regulated, not a regulator.

Answer 1

The Correct Option is C

This question checks whether a student can tell a market regulator apart from a company that is itself regulated. Three of the four names are regulatory bodies set up by law to watch over a sector, and one of them is an operating company. Let's go through each option.

1. RBI: The Reserve Bank of India is the country's central bank. It regulates banks, sets monetary policy, and controls the money supply. It is a regulator, not a company that sells a product to the public.
2. SEBI: The Securities and Exchange Board of India regulates the stock markets and protects investors who buy shares, bonds, and mutual funds. It is a regulator of the capital market.
3. LIC: The Life Insurance Corporation of India is a public sector insurance company. It sells life insurance policies to people. LIC does not regulate anyone; instead, LIC itself is regulated by another body.
4. IRDA: The Insurance Regulatory and Development Authority regulates and supervises the insurance sector in India, including companies like LIC.

RBI, SEBI, and IRDA are all statutory regulators, each watching over one part of the financial system: banking, the securities market, and insurance. LIC is different because it is a service provider that operates inside the sector IRDA regulates, not a regulator itself. That makes LIC the odd one out.

Let's summarize:

• RBI, SEBI, and IRDA are regulatory authorities for banking, securities, and insurance.
• LIC is an insurance company that is supervised by IRDA, so it does not belong with the other three.

The odd one out is LIC, since it is a regulated company while the other three are regulators.