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      Question

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

      per borrower?
      A β‚Ή15 lakh Correct Answer Incorrect Answer
      B β‚Ή25 lakh Correct Answer Incorrect Answer
      C β‚Ή50 lakh Correct Answer Incorrect Answer
      D β‚Ή1 crore Correct Answer Incorrect Answer
      E β‚Ή2.5 crore Correct Answer Incorrect Answer

      Solution

      β€’ As per RBI regulations, NBFCs can provide funding for subscription to Initial Public Offers (IPOs), but a ceiling has been prescribed to mitigate risk. β€’ The maximum limit is β‚Ή1 crore per borrower. β€’ NBFCs are free to adopt a more conservative internal cap depending on their risk appetite and credit policies. β€’ 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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