Multiple choice

Which of the following facts is incorrect regarding a securitisation company?

  1. It is a company registered under Companies Act.

  2. It has to obtain registration with SEBI for undertaking securitisation.

  3. It can set up a separate trust for different schemes of securitisation.

  4. Its minimum paid up capital is Rs. 100 crores and net worth is at least 15% of the acquired assets.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The regulations exclude few persons from the application of the regulations. They are specific family trusts, ESOP trusts (conditions), employee welfare trusts, gratuity trusts, holding companies‘ within the meaning of Section 4 of the Companies Act, 1956, securitisation trusts, securitisation company, reconstruction company registered with RBI, any such pool of funds which is directly regulated by any other regulator in India.

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