Multiple choice

For each asset acquired or to be acquired by the securitisation company or the reconstruction company, there should be

  1. separate scheme

  2. combined scheme

  3. separate and combined scheme

  4. None of the above
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A Correct answer
Explanation

Scheme of acquisition has to be formulated for every acquisition detailing therein the description of financial assets under acquisition, the quantum of investment, rate of return assured etc. Further separate and distinct accounts have to be maintained in respect of each scheme of acquisition. Realisations made from the financial assets have to be held and applied towards the redemption of investments and payment of assured returns.

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