Investments in Equities/Bonds issued by All-India Financial Institutions

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Published on July 22, 2002

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Investments in Equities/Bonds issued by All-India Financial Institutions

Ref. DBOD No. Dir.BC. 6/13.07.05 /2002-03

July 22, 2002

All Scheduled Commercial Banks (excluding RRBs and LABs)

Dear Sir,

Investments in Equities/Bonds issued by All-India Financial Institutions

Please refer to paragraph 5.1.3 of our Master Circular DBOD No. Dir. 12/13.03.00/2001-02 dated August 13, 2001 in terms of which banks’ investments in equity/bonds issued by the All-India Financial Institutions enumerated in Annexure 3 of the above circular are exempted from the 5 per cent ceiling prescribed in terms of paragraph 5 of our Circular DBOD No. BP. BC. 119/21.04.137/2000-2001 dated May 11, 2001. It has been decided that investments by banks in equities/bonds issued by Infrastructure Development Finance Company Ltd. (IDFC) should also be exempted from the abovesaid 5 per cent ceiling. Accordingly, a revised list of All-India Financial Institutions is enclosed for your information.

Please acknowledge receipt.

Yours faithfully,

(M. R. Srinivasan)
Chief General Manager

Annexure 3
Master Circular
Exposure Norms
List of All-India Financial Institutions

( Investment in equity/bonds by banks - List of FIs whose instruments are exempted from the 5 % ceiling)

(vide paragraph 5.1.3)

1. Industrial Credit and Investment Corporation of India Ltd. (ICICI)

2. Industrial Finance Corporation of India Ltd. (IFCI)

3. Industrial Development Bank of India (IDBI)

4. Tourism Finance Corporation of India Ltd. (TFCI)

5. Risk Capital and Technology Finance Corporation Ltd. (RCTC)

6. Technology Development and Information Company of India Ltd. (TDICI)