Corporate Updates – 22-08-2014

RBI:

RBI vide its circular dated 23-10-2012 has extended the period of concessions/ credit relaxations to borrowers / customers in Jammu & Kashmir up to 31 March 2014. It has been further decided that the concessions / credit relaxations to borrowers / customers in the State of Jammu & Kashmir, as laid down in the scheme will continue to be operative up to March 31, 2016. Further all Scheduled Commercial Banks are advised to issue Suitable instructions to their controlling / branch offices in this regard.

RBI:

RBI has come out with the set of guidelines on lending against shares carried out by NBFCs. At present, there are no specific instructions apart from the general prudential regulation applicable to all NBFCs. Accordingly, NBFCs lending against collateral of shares shall Maintain an LTV ratio of 50% and accept only Group 1 securities as collateral for loans of value more than Rs. 5 lakh, subject to review by the Bank. Further all NBFCs with asset size of Rs.100 crore and above shall report on-line to stock exchanges, information on the shares pledged in their favour, by borrowers for availing loans.

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