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Asset reconstruction company shall not commence or carry on the business of securitization or asset reconstruction without ___________.
  • a)
    Obtaining a certificate of registration granted by the RBI
  • b)
    Having net owned fund of less than two crore rupees or such other higher amount as the RBI, may, specify
  • c)
    Having net owned fund of not less than two crore rupees or such other higher amount as the RBI, may, specify
  • d)
    Both (a) & (b)
  • e)
    Both (a) & (c)
Correct answer is option 'E'. Can you explain this answer?
Most Upvoted Answer
Asset reconstruction company shall not commence or carry on the busine...
An asset reconstruction company (ARC) shall not commence or carry on the business of securitization or asset reconstruction without both of the following conditions being fulfilled:
(a) Obtaining a certificate of registration granted by the Reserve Bank of India (RBI): The ARC must obtain a certificate of registration from the RBI before it can commence or carry on the business of securitization or asset reconstruction. The certificate of registration is granted by the RBI after fulfilling certain regulatory requirements and conditions.
(c) Having net owned fund of not less than two crore rupees or such other higher amount as the RBI may specify: The ARC must have a minimum net owned fund of at least two crore rupees, or any higher amount specified by the RBI. The net owned fund refers to the owned fund as reduced by accumulated losses and intangible assets. This requirement ensures that the ARC has a minimum level of financial strength and stability to carry out its activities.
Therefore, both obtaining a certificate of registration from the RBI and having a minimum net owned fund are essential for an ARC to commence or carry on the business of securitization or asset reconstruction.
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Asset reconstruction company shall not commence or carry on the business of securitization or asset reconstruction without ___________.a)Obtaining a certificate of registration granted by the RBIb)Having net owned fund of less than two crore rupees or such other higher amount as the RBI, may, specifyc)Having net owned fund of not less than two crore rupees or such other higher amount as the RBI, may, specifyd)Both (a) & (b)e)Both (a) & (c)Correct answer is option 'E'. Can you explain this answer?
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Asset reconstruction company shall not commence or carry on the business of securitization or asset reconstruction without ___________.a)Obtaining a certificate of registration granted by the RBIb)Having net owned fund of less than two crore rupees or such other higher amount as the RBI, may, specifyc)Having net owned fund of not less than two crore rupees or such other higher amount as the RBI, may, specifyd)Both (a) & (b)e)Both (a) & (c)Correct answer is option 'E'. Can you explain this answer? for Banking Exams 2024 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about Asset reconstruction company shall not commence or carry on the business of securitization or asset reconstruction without ___________.a)Obtaining a certificate of registration granted by the RBIb)Having net owned fund of less than two crore rupees or such other higher amount as the RBI, may, specifyc)Having net owned fund of not less than two crore rupees or such other higher amount as the RBI, may, specifyd)Both (a) & (b)e)Both (a) & (c)Correct answer is option 'E'. Can you explain this answer? covers all topics & solutions for Banking Exams 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Asset reconstruction company shall not commence or carry on the business of securitization or asset reconstruction without ___________.a)Obtaining a certificate of registration granted by the RBIb)Having net owned fund of less than two crore rupees or such other higher amount as the RBI, may, specifyc)Having net owned fund of not less than two crore rupees or such other higher amount as the RBI, may, specifyd)Both (a) & (b)e)Both (a) & (c)Correct answer is option 'E'. Can you explain this answer?.
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