×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

RBI excludes investments in NPCI and USEL

RBI excludes investments in NPCI and USEL
Comment E-mail Print Share
First Published: Tue, Sep 21 2010. 11 44 PM IST
Updated: Tue, Sep 21 2010. 11 44 PM IST
Mumbai: The Reserve Bank of India on Tuesday excluded banks’ investments in National Payments Corporation of India and United Stock Exchange Ltd from capital market exposure, classifying both firms as institutions that form crucial financial infrastructure.
According to RBI guidelines, banks have a capital market exposure ceiling of 40% of net worth and direct investment ceiling of 20% of net worth, until they are listed. After listing, the exposure in excess of the original investment would form part of the capital market exposure.
However, investments in banks’ subsidiaries, joint ventures, sponsored regional rural banks, apart from investments in shares and convertible debentures, convertible bonds issued by certain institutions forming crucial financial infrastructure, are exempt from capital markets exposure.
Comment E-mail Print Share
First Published: Tue, Sep 21 2010. 11 44 PM IST