Multiple choice

Under provisions of SARFAESI Act, the security receipt evidences

  1. undivided right or interest of the purchaser, in the security

  2. independent right or interest of the purchaser, in the security

  3. exclusive right or interest of the purchaser, in the security

  4. exclusive right or interest of the seller, in the security
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A Correct answer
Explanation

The securitisation involves two stages. In the first stage, it is acquisition of financial assets and undivided interest therein. Second stage is issue of security receipts in favor of investors for the purpose of raising money from investors. Thus, option 1 is the correct answer.

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