On which among the following dates FERA was replaced by FEMA?
[A]June 1, 2000
[B]June 11, 2000
[C]April 1, 2001
[D]April 1, 2002
June 1, 2000
What is the minimum net owned funds (NOF) mandatory for a Infrastructure Finance Company (IFC) in India?
[A]Rs. 200 Crore
[B]Rs. 300 Crore
[C]Rs. 500 Crore
[D]Rs. 100 Crore
Rs. 300 Crore
A company which has net owned funds of at least Rs. 300 Crore and has deployed 75% of its total assets in Infrastructure loans is called IFC provided it has credit rating of A or above and has a CRAR of 15%.
What is the main business of Systemically Important Core Investment Company (CIC-ND-SI) in India?
[A]Acquisition of shares and securities
[B]Facilitate the flow of long term debt into infrastructure projects
[C]Deploy its assets in infrastructure loans
[D]Financing of physical assets such as automobiles, earth moving equipments etc.
Acquisition of shares and securities
A CIC-ND-SI is a Non-Banking Financial Company
(i) with asset size of Rs 100 crore and above
(ii) carrying on the business of acquisition of shares and securities and which satisfies the following conditions as on the date of the last audited balance sheet,
(iii) it holds not less than 90% of its net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies;
(iv) its investments in the equity shares (including instruments compulsorily convertible into equity shares within a period not exceeding 10 years from the date of issue) in group companies constitutes not less than 60% of its net assets as mentioned in clause (iii) above;
(v) it does not trade in its investments in shares, bonds, debentures, debt or loans in group companies except through block sale for the purpose of dilution or disinvestment;
(vi) it does not carry on any other financial activity referred to in Section 45I(c) and 45I(f) of the RBI act, 1934 except investment in bank deposits, money market instruments, government securities, loans to and investments in debt issuances of group companies or guarantees issued on behalf of group companies.
(vii) it accepts public funds (RBI)
In India, Infrastructure Debt Fund can be established as a Trust or a company. Which of the following regulated the Infrastructure Debt Fund set up as a trust?
[D]Ministry of Corporate Affairs
If the IDF is set up as a trust, it would be a mutual fund, regulated by SEBI.
What is the cap on loan amount given out by a Non-Banking Financial Company – Micro Finance Institution (NBFC-MFI)?
NBFC-MFI is a non-deposit taking NBFC which has at least 85% of its assets in the form of m microfinance. Such microfinance should be in the form of loan given to those who have annual income of Rs. 60,000 in rural areas and Rs. 120,000 in urban areas. Such loans should not exceed Rs. 50000 and its tenure should not be less than 24 months. Further, the loan has to be given without collateral. Loan repayment is done on weekly, fortnightly or monthly instalments at the choice of the borrower.
Which of the following is are the parties in Factoring Business?
[C]buyer and seller
[D]buyer, seller and financial institution
buyer, seller and financial institution
Factoring refers to the process of managing the sales register of a client by a financial services company. Basically, there are three parties involved in a factoring transaction:
1. The buyer of the goods
2. The seller of the goods
3. The factor, i.e. The financial institution.
What is the minimum tenure of deposits to be taken by NBFCs?
All NBFCs are not allowed to take deposits. Only those NBFCs which have specific authorization from RBI are allowed to accept/hold public deposits. NBFCs cannot take demand deposits. They can accept only term deposits with a tenure of minimum 12 months.