Question
Which of the following statements about Net Owned Fund
(NOF) requirement for ARCs is true? Refer to the following information to answer the next 4 questions (Q15 to Q17) The asset reconstruction industry is set to clock the best growth this fiscal as their asset under management is expected to increase by almost 10% to Rs 1.1 lakh crore. The 29-player ARC industry began its journey in the second half of 2002 and has since undergone radical regulatory changes and challenges. With the beginning of operation of public sector National Asset Reconstruction Co. and rising popularity of the Insolvency and Bankruptcy Code effective from May 2016 also pose challenge for the ARC industry. Another major challenge is the steep fall in banks' non-performing assets, which is set to fall to under 5% by March, down from over 11% in FY18. Assets under management of ARCs are set togrow 9.8% to a five-year high this fiscal, driven by a few large transactions to Rs 1.19 lakh crore.Solution
The minimum Net Owned Fund (NOF) for ARCs shall be Rs.300 crore on an ongoing basis from October 11, 2022. Therefore, option C is the correct answer. Options A, B, and D are incorrect as they provide incorrect information, and option E is incorrect as there is a change in the NOF requirement.
- Arun and Meena start a business with investments in the ratio 7:3 respectively. After 4 months, Neha joins with an amount equal to the average of both. If ...
In a business there are two partners ‘P’ and ‘Q’. ‘P’ started the business with the capital of Rs. 24000 and after 3 months ‘Q’ joined h...
Ms. Neha and Ms. Tara launched a startup with a total investment of Rs. ‘x’. Neha's share in the initial investment was 45%, and Tara invested the r...
The savings of Arun and Bhaskar are same. The difference between the expenditure of Bhaskar and the savings of both Arun and Bhaskar together is 0. The ...
‘X’ invested Rs. 5000 in a business. ‘Y’ joined x months later with an investment of Rs. 4000. If at the end of the year, Y’s share in the pro...
Seeta, Geeta and Reeta invested Rs. 8000, Rs. 10000 and Rs. 12000 respectively. Partnership condition is that, each will get interest on his capital at ...
If a sum of money is to be divided among A, B, C such that A’s share is equal to thrice B’s share and B’s share is 8 times C’s share then their ...
A, B and C enter into a partnership with a capital in which A’s contribution is Rs. 10,000. If out of a total profit of Rs. 2000, A gets Rs. 800 a...
'Ashish' started a business by investing Rs.15,000. 'm' months later, 'Arjun' joined him by investing Rs. 10,000. 4 months after joining the business, '...
Armaan began a business with an initial investment of Rs. 2400. After 8 months, Bhuvan entered the business with an amount such that Armaan's investment...
