The Chief Executives, All Banks / DFIs
Dear Sirs / Madam,
Prudential Regulation R-6 for Corporate / Commercial Banking
It has been decided to make following amendments in the Prudential Regulation R-6, Para 1.B, with immediate effect:
i) The DFIs which are not mobilizing funds as deposits / COIs from general public / individuals will be exempt from the requirement of capping their total investment in equities. ii) The DFIs which are mobilizing funds as deposits / COIs from general public / individuals will be required to contain their total investment in shares up to 35% of their equity.
i) The DFIs which are not mobilizing funds as deposits / COIs from general public / individuals will be exempt from the requirement of capping their total investment in equities.
2. It is further clarified that the shares will be valued at cost of acquisition for the purposes of calculation under Prudential Regulation R-6, Para 1.B.
Please acknowledge receipt.