Multiple choice

RBI can cancel the registration of a Securitization Company, without giving opportunity to such company in certain circumstances. Which of these is not one among them?

  1. Company ceases to carry on business of securitization.

  2. Company ceases to hold any investment from qualified institutional buyers.

  3. Company fails to comply with directions of RBI.

  4. Cancellation without giving opportunity cannot be done, as it is illegal.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A securitization company or reconstruction company aggrieved by the order of cancellation of certificate of registration may prefer an appeal, within a period of thirty days from the date on which such order of cancellation is communicated to it, to the Central Government provided that before rejecting an appeal, such company shall be given a reasonable opportunity of being heard as cancellation without giving opportunity is not licit.

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