Question

Which of the following is the key feature of the

Q: Answer-Which of the following is the key feature of the Security Receipts (SRs) issued by ARCs when acquiri...

Security Receipts SRs are issued by ARCs to represent the value of the assets they acquire. SRs have features of both debt and equity, with unpredictable cash flows. They are typically high-risk instruments and are only redeemed when the underlying assets are recovered.

Security Receipts (SRs) issued by ARCs when acquiring stressed assets?

A SRs are issued only to individual investors and not institutional investors.

B SRs represent a combination of equity and debt, with high risks involved.

C SRs are always backed by government securities and thus have no risk.

D SRs can only be redeemed if the assets are fully recovered.

E SRs are typically issued for assets that have been securitized.

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Which of the following is the key feature of the

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