Multiple choice

In the process of securitization of NPA accounts, the qualified institutional buyers are eligible to purchase security receipts issued by the secuiritisation company. QIB does not include

  1. financial institution or insurance company

  2. banks or mutual funds

  3. state financial corporations or state industrial development corporations

  4. joint stock companies

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

Qualified Institutional Buyer shall mean:

  • Scheduled commercial banks;
  • Mutual funds;
  • Foreign institutional investor registered with SEBI;
  • Multilateral and bilateral development financial institutions;
  • Venture capital funds registered with SEBI;
  • Foreign Venture capital investors registered with SEBI;
  • State Industrial Development Corporations. etc. Thus, option 4 is the correct answer.