Multiple choice

Which of the following is a reason for the cancellation of registration of the securitisation company and reconstruction company without giving a hearing opportunity?

  1. The company does not keep accounts as per the RBI norms

  2. The company ceases to carry on the business of securitisation or reconstruction

  3. The company fails to hold investment from the qualified investor

  4. Any of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Reserve Bank may cancel a certificate of registration granted to a securitisation company or a reconstruction company, if such company

(a) ceases to carry on the business of securitisation or asset reconstruction (b) ceases to receive or hold any investment from a qualified institutional buyer (c) has failed to comply with any conditions subject to which the certificate of registration has been granted to it (d) at any time fails to fulfil any of the conditions referred to in clauses (a) to (g) of Sub-section (3) of Section 3.

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