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      Question

      What is the minimum holding period requirement SEBI has

      proposed for the underlying assets of securitized debt instruments (SDIs), and what purpose does this serve?
      A 6 months, to allow early redemption options Correct Answer Incorrect Answer
      B 12 months, to increase investor turnover Correct Answer Incorrect Answer
      C 24 months, to establish a stable track record of asset performance Correct Answer Incorrect Answer
      D 18 months, to align with market trends Correct Answer Incorrect Answer
      E No minimum period, allowing greater flexibility for issuers Correct Answer Incorrect Answer

      Solution

      SEBI's proposal includes a minimum holding period to ensure that the underlying assets of SDIs have a stable performance record before securitisation, aligning interests between originators and investors and enhancing market stability.

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