An NBFC-Factor shall ensure that its financial assets in the factoring business constitute at least what percentage of its total assets and its income derived from factoring business is not less than what percentage of its gross income?

A 30% of total assets and 30% of gross income Correct Incorrect

B 40% of total assets and 40% of gross income Correct Incorrect

C 50% of total assets and 50% of gross income Correct Incorrect

D 60% of total assets and 60% of gross income Correct Incorrect

E 70% of total assets and 70% of gross income Correct Incorrect

Detailed Solution

An NBFC-Factor must ensure that its financial assets in the factoring business constitute at least 50% of its total assets and that its income derived from the factoring business is not less than 50% of its gross income. This requirement is intended to ensure that NBFC-Factors maintain a significant focus on their core business of factoring.

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An NBFC-Factor shall ensure that its financial assets in the factoring business constitute at least what percentage of its total assets and its income derived from factoring business is not less than what percentage of its gross income?

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