Report of the Standing Technical Committee of RBI and SEBI on Review of the RBI Guidelines on 'Bank Financing of Equities'
In the year 2000-2001, the RBI- SEBI Technical Committee reviewed the RBI guidelines on bank's investments in capital market. The report of the committee was submitted on April 12,2001. It recommended a 20% ceiling on overall exposure to capital market and revision in limits related to investments in shares and advances against shares and debentures, prudent risk management policy for banks, prohibition on Primary Co-operative banks to grant any credit facility against the security of shares and other capital market instruments, and monthly reporting to RBI.
