DBOD.No. Dir. BC. 78/13.07.05/98-99
August 8, 1998
Shravana 17, 1920 (Saka)
All Commercial Banks
Dear Sir,
Investments in and
underwriting of shares and debentures of corporate bodies
Please refer to our circular
DBOD. Dir. BC.60/13.07.05/97 dated May 28, 1997, in terms of which banks are
allowed to invest in equity shares including PSU shares, convertible
debentures of corporates and in units of Mutual Fund Schemes, the corpus of
which is not exclusively invested in corporate debt instruments within the
limit of 5% of incremental deposits of the previous year. It is clarified
that investments in equity in dedicated venture capital funds meant for
Information Technology is also eligible for inclusion within the five per
cent limit prescribed for investments in equity instruments.
Yours faithfully
(Radhe Shyam)
Additional Chief General
Manager