960131
STATE BANK CIRCULARS RELATING TO NBFIs
NBFI Circular No.4
dated the 31st January, 1996
Please refer to NBFIs Circular No. I dated 5th December, 1991 as modified from time to time. The existing Rule-9 of the Rules of Business for NBFIs is substituted as under :-
Rule-9 Limit on NBFI's exposure
(i) "Total exposure of a NBFI to a single borrowing entity or group shall not exceed 20% of its equity. In the case of listed companies exposure shall not exceed 20% of total assets of the NBFIs. For financing of petroleum refinery projects, power projects, locomotives and fertilizer projects also total exposure shall not exceed 20% of the total assets of the NBFI. In arriving at per party exposure, 90% of (a) Certificates of Deposit/Certificates of Investment of the borrowing entity or the group, under lien with the NBFI; and (b) face value of FIBs lodged by the borrowing entity or group as collateral. shall be deducted."
(ii) The above amendment shall come into force with immediate effect.
