New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    What additional safeguard has SEBI proposed for

    securitised debt instruments (SDIs) to address timing mismatches in cash flows?
    A Introduction of variable interest rates Correct Answer Incorrect Answer
    B Shorter maturity period Correct Answer Incorrect Answer
    C Liquidity facilities provided by originators or third parties Correct Answer Incorrect Answer
    D Mandatory reserve fund Correct Answer Incorrect Answer
    E Restrictions on high-risk asset pools Correct Answer Incorrect Answer

    Solution

    SEBI proposes that originators or third parties should provide liquidity facilities to manage cash flow timing mismatches, ensuring timely payments to investors and reducing risks associated with SDI investments.

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