Multiple choice

Aggregate investment of a bank in its subsidiary companies cannot exceed __% of _ the bank.

  1. 15%, capital fund

  2. 15%, paid up capital

  3. 20%, paid up capital

  4. 20%, net worth

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

Correct Answer: 20%, paid up capital Equity investments in any non-financial services company held by (a) a bank; (b) entities which are bank’s subsidiaries, associates or joint ventures or entities directly or indirectly controlled by the bank; and (c) mutual funds managed by Asset Management Companies (AMCs) controlled by the bank should in the aggregate not exceed 20 per cent of the investee company’s paid up share capital.