Multiple choice

A bank can hold as mortgagee, pledgee or absolute owner of shares of a company, for a maximum extent of

  1. 30% of paid<font size="2">-</font>up capital of the bank and 30% of paid-up capital of the company, whichever is lower

  2. 30% of paid<font size="2">-</font>up capital of the bank and 20% of paid-up capital of the company, whichever is higher

  3. 30% of paid<font size="2">-</font>up capital of the bank or 30% of paid-up capital of the company, whichever is higher

  4. 30% of paid<font size="2">-</font>up capital + reserves of the bank and 30% of paid<font size="2">-</font>up capital of the company, whichever is lower
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Bank should not hold more than 30% of the paid-up capital of the company or 30% of its own paid-up capital, whether as pledgee, mortgagee or absolute owner. 

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