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.

Practice Next

More Financial Management Questions

Which district is called the energy capital of Madhya Pradesh?
Which state governments recently signed an MoU for the implementation of the Rs 72,000 crore Parbati-Kalisindh-Chambal (PKC) inter-state river linking p...
As per July 2023, which among the following states have more than 30 Lok Sabha constituencies?

I. Uttar Pradesh

II. Madhya Pradesh
The Union Cabinet has recently approved the extension of which scheme?
Who among the following won the Nobel Prize in 1961 for mapping of the pathway of carbon assimilation in photosynthesis?
The Elphinstone code which introduced a uniform scheme of criminal law was introduced in which year?
Where did the Wings India 2024 event hold in January 2024?
Who has launched “Call before u dig” Application ?
Consider the following statements:

1. The source of sunlight and heat is Nuclear Fusion.

2. The Hydrogen Bomb is based on Nuclear Fusion.<...
Where will the event "Semicon India 2023" take place from 28th to 30th July 2023?

Which of the following is the key feature of the

Solution