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    Question

    According to Section 3 of the Factoring Regulation Act,

    what is required for a factor to commence or carry on the factoring business?
    A A license from the Ministry of Finance Correct Answer Incorrect Answer
    B A certificate of registration from the Reserve Bank Correct Answer Incorrect Answer
    C Approval from the Competition Commission of India Correct Answer Incorrect Answer
    D A certificate of registration from the Securities and Exchange Board of India Correct Answer Incorrect Answer
    E Authorization from the Insurance Regulatory and Development Authority of India Correct Answer Incorrect Answer

    Solution

    Section 3 Registration of Factors: No factor shall commence or carry on the factoring business unless it obtains a certificate of registration from the Reserve Bank to commence or carry on the factoring business under this Act.  

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