Question

Under what conditions can an insurer invest a maximum of 20% of the project cost of a Public Limited Special Purpose Vehicle (SPV) engaged in the Infrastructure sector?

a.

If the investment is in equity

b.

If the parent company guarantees the entire debt extended and the interest payment of SPV

c.

If the parent company has a rating of less than AA

d.

If the Net worth of the parent company is less than Rs. 500 crores

Answer: (b).If the parent company guarantees the entire debt extended and the interest payment of SPV Explanation:An insurer can invest a maximum of 20% of the project cost of a Public Limited Special Purpose Vehicle (SPV) engaged in the Infrastructure sector if the investment is in debt and the parent company guarantees the entire debt extended and the interest payment of SPV.

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Q. Under what conditions can an insurer invest a maximum of 20% of the project cost of a Public Limited Special Purpose Vehicle (SPV) engaged in the Infrastructure sector?

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