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      Question

      The RBI has imposed investment ceilings for regulated

      entities in AIFs to reduce risk concentration. Which of the following statements are true?Β  I. Individual exposure must not exceed 10% of AIF corpus.Β  II. Collective exposure of all REs must remain below 20%.Β  III. Any exposure over 5% to its own debtor requires full provisioning.Β 
      A I only Correct Answer Incorrect Answer
      B I and II only Correct Answer Incorrect Answer
      C II and III only Correct Answer Incorrect Answer
      D I and III only Correct Answer Incorrect Answer
      E I, II, and III Correct Answer Incorrect Answer

      Solution

      All three conditions are part of the RBI's latest AIF guidelines: 10% individual cap, 20% collective, and 100% provisioning beyond 5% exposure.Β 

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