Corporate Updates – 23-09-2015


The Ministry of Communications and Information Technology, (Department of Electronics and Information Technology) has notified the revised norms on digital signature. The Ministry has notified The Digital Signature (End Entity) Rules, 2015under the powers conferred by Section 87 of the Information Technology Act, 2000. These rules shall come into force on the date of their publication in the official gazette. Through these rules attempt has been made to define various terms used in the process & usage of the digital signatures. Further, process and procedure relating to manner of authentication of information by means of Digital Signature, Creation of Digital Signature, Verification of Digital Signature, Verification of Digital Signature Certificate, Digital Signature Standards, Creation of XML Digital Signature, Verification of XML Digital Signature and XML Digital Signature Standards have been provided.


Equity Investment by Banks are subject to prudential limits as mentioned in the Master Circular on ‘Para-banking Activities’ dated July 1, 2015, viz., equity investments by a bank in a subsidiary company, or a financial services company, including financial institutions, stock and other exchanges, depositories, etc., which is not a subsidiary should not exceed 10 per cent of the bank’s paid-up share capital and reserves and the total investments made in all subsidiaries and other entities that are engaged in financial services activities together with equity investments in entities engaged in non- financial services activities should not exceed 20 per cent of the bank’s paid-up share capital and reserves. To give more operational freedom and flexibility in decision making, it is advised that banks which have CRAR of 10 per cent or more and have also made net profit as of March 31 of the previous year need not approach RBI for prior approval for equity investments in cases where after such investment, the holding of the bank remains less than 10 per cent of the investee company’s paid up capital, and the holding of the bank, along with its subsidiaries or joint ventures or entities continues to remain less than 20 per cent of the investee company’s paid up capital.

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