Consider the following statements regarding Alternative Investment Funds (AIF) in India:

1. Category I and II AIFs can now borrow funds for operational flexibility.

2. The borrowing is capped at 10% of investible funds, or 20% of the drawdown value.

Which of the statements given above is/are incorrect?

1
1 only
2
2 only 
3
Both 1 and 2
4
Neither 1 nor 2

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