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    Question

    What is the maximum ceiling on IPO funding by an NBFC,

    per borrower?
    A ₹15 lakh Correct Answer Incorrect Answer
    B ₹25 lakh Correct Answer Incorrect Answer
    C ₹50 lakh Correct Answer Incorrect Answer
    D ₹1 crore Correct Answer Incorrect Answer
    E ₹2.5 crore Correct Answer Incorrect Answer

    Solution

    • As per RBI regulations, NBFCs can provide funding for subscription to Initial Public Offers (IPOs), but a ceiling has been prescribed to mitigate risk. • The maximum limit is ₹1 crore per borrower. • NBFCs are free to adopt a more conservative internal cap depending on their risk appetite and credit policies. • This regulation is aimed at avoiding excessive speculative borrowing in IPOs and ensuring that credit risk remains contained within prudent limits.

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