Question

    What recent regulatory change did SEBI introduce for NBFCs

    and HFCs?
    A They can invest in security receipts issued by Asset Reconstruction Companies (ARCs). Correct Answer Incorrect Answer
    B They can issue new forms of bonds to retail investors. Correct Answer Incorrect Answer
    C They must maintain higher capital reserves than commercial banks. Correct Answer Incorrect Answer
    D They are required to reduce bad loans by 50% in five years. Correct Answer Incorrect Answer
    E They are exempt from SARFAESI Act provisions. Correct Answer Incorrect Answer

    Solution

    SEBI now allows NBFCs and HFCs to invest in security receipts issued by Asset Reconstruction Companies (ARCs), improving liquidity and asset management.

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