Mumbai: The Reserve Bank of India (RBI) said on Wednesday it has amended disclosure rules for the hold-to-maturity (HTM) portfolio of financial institutions.
Under the new rules, they must disclose the value of investments under HTM if securities moved from or to that category are above 5% of investments at the start of the financial year.
Banks and financial institutions must classify their debt investments into three categories, including the HTM where transactions are allowed only at the start of the financial year.
These investments are also exempt from the mark-to-market requirements of the central bank.
Financial institutions also need to indicate the excess of book value over market value for which provision is not made in the HTM segment, the RBI said on Wednesday.
This disclosure is required to be made in ‘Notes to Accounts’ in the financial institutions’ audited annual financial statements.
The central bank had earlier this month issued similar norms for banks.