Question

According to Regulation 9, what is the purpose of limiting exposure to a single investee company?

a.

To encourage concentrated investments

b.

To minimize risk and ensure diversification

c.

To increase the profitability of investments

d.

To comply with regulatory requirements

Answer: (b).To minimize risk and ensure diversification Explanation:The purpose of limiting exposure to a single investee company, as per Regulation 9, is to minimize risk and ensure diversification of investments. This helps in managing risks associated with concentration in a particular company.

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Q. According to Regulation 9, what is the purpose of limiting exposure to a single investee company?

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