Multiple choice

When the securitisation company or reconstruction company issues security receipts, the holder thereof is entitled to a ____________ in the financial asset.

  1. divided interest

  2. undivided interest

  3. divided and undivided interest

  4. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

"Securitisation" means acquisition of financial assets by any securitisation company or reconstruction company from any originator, by raising of funds by such securitisation company or reconstruction company from qualified institutional buyers by issue of security receipts representing undivided interest in such financial assets.