Multiple choice

In which of the following processes are non-liquidated financial assets (say NPAs) converted into marketable securities (security receipts)?

  1. Liquidation of NPAs

  2. Factoring of NPAs

  3. Securitisation of NPAs

  4. Reconstruction of NPAs
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Securitisation of NPAs is a process where non-liquidated financial assets (dues from a borrower) are converted into marketable securities (security receipts), that can be sold to investors.

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