Question

    What is the minimum investment threshold proposed by

    SEBI for securitised debt instruments (SDIs), and what is the primary reason for setting this threshold?
    A ₹10 lakh, to allow more retail participation in SDIs Correct Answer Incorrect Answer
    B ₹50 lakh, to encourage both retail and institutional investments Correct Answer Incorrect Answer
    C ₹1 crore, to attract sophisticated investors and reduce retail exposure Correct Answer Incorrect Answer
    D ₹5 crore, to limit the market to institutional investors only Correct Answer Incorrect Answer
    E No threshold, allowing flexibility for all types of investors Correct Answer Incorrect Answer

    Solution

    SEBI proposed a minimum investment threshold of ₹1 crore for SDIs to ensure that primarily sophisticated investors participate, thereby reducing the high-risk exposure for retail investors and enhancing investor protections.

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