Question

How should investments in Fixed Deposits and Certificate Deposits of a scheduled bank be made?

a.

In compliance with Section 27A (9) and Section 27B (10) of the Insurance Act

b.

Without any regulatory restrictions

c.

Subject to exposure limits for financial and insurance activities

d.

Through private placement

Answer: (a).In compliance with Section 27A (9) and Section 27B (10) of the Insurance Act Explanation:Investments in Fixed Deposits and Certificate Deposits of a scheduled bank should be made in terms of the provisions of Section 27A (9) and Section 27B (10) of the Insurance Act. Such investments would not be deemed as exposure of financial and insurance activities.

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Q. How should investments in Fixed Deposits and Certificate Deposits of a scheduled bank be made?

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