The Reserve Bank of India RBI is keeping a close watch on the developments in the wake of filing of Chapter 11 bankruptcy petition by Lehman Brothers Holding Inc. in the US and is in constant touch with banks and other market participants to manage, in an orderly manner, any fallout of these developments on the Indian markets.

In public interest and in the interest of financial stability, RBI has advised Lehman Brothers Capital Pvt. Ltd., a NBFC that it would need prior approval of RBI before contracting any direct/indirect liability from any institution in India or outside India or making any foreign currency remittance.

Lehman Brothers Fixed Income Securities Pvt. Ltd. a Primary Dealer has been advised not to declare any interim dividend or remit any amount to its holding company or any other group company without prior approval of RBI. Further, Lehman Brothers Fixed Income Securities Pvt. Ltd. has been advised not to undertake transactions in Government securities as a Primary Dealer in the primary market.

Alpana Killawala
Chief General Manager