Question

Which of these statements are true?

• Statement 1: No banking Company shall grant any loans or advances on the security of its own shares.

• Statement 2: Advance against their own shares is not allowed by banks, because these are prohibited under RBI Act of 1934.

• A. Both Statements 1 and 2 are true.
• B. Neither Statement 1 nor Statement 2 is true.
• C. Only Statement I is true.
• D. Only Statement 2 is true.

Answer 1

Answer:

C. Only Statement I is true.

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