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      Question

      What is the absolute, non-exceedable single counterparty

      exposure ceiling for an Upper Layer NBFC under any permissible combination of board or project approvals?
      A 15% of the eligible capital base Correct Answer Incorrect Answer
      B 20% of the eligible capital base Correct Answer Incorrect Answer
      C 25% of the eligible capital base Correct Answer Incorrect Answer
      D 35% of the eligible capital base Correct Answer Incorrect Answer
      E 50% of the eligible capital base Correct Answer Incorrect Answer

      Solution

      Under no circumstances can the total concentrated credit exposure to a single standalone counterparty cross an absolute maximum ceiling of 25% of the eligible capital base.

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