Question

Which of the following statement regarding SEBI’s guidelines for Alternate Investment Funds (AIFs) related to participation in Credit Default Swaps (CD

  • S is not true?
A Category I AIFs and Category II AIFs may buy CDS on underlying investment in debt securities, only for the purpose of hedging.
B Category I and Category II AIFs which transact in CDS, shall maintain sixty days cooling off period between the two periods of borrowing or engaging in leverage.
C Category III AIFs may buy CDS for the purpose of hedging or otherwise, within permissible leverage as specified by SEBI
D Only a and c are false
E All are false
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