Don’t miss the latest developments in business and finance.

Banks Urged To Ensure Exit Clause In Selloff Funding

Image
Our Banking Bureau BUSINESS STANDARD
Last Updated : Jan 28 2013 | 1:39 AM IST

The central bank has asked banks which fund bidders in PSU selloffs to ensure that the shares pledged with it can be sold during the lock-in period.

As per the Reserve Bank of India guidelines, the documentation between the government and the successful bidder should contain a provision permitting the pledgee (bank) to liquidate the shares even during the lock-in period in case of a shortfall in margin requirement or default by the borrower.

However, as per the Centre

Also Read

First Published: Mar 24 2003 | 12:00 AM IST

Next Story