The Reserve Bank of India (RBI) is set to overhaul the equity holding structures in financial conglomerates and take the first formal steps towards the holding company (HoldCo) model when it comes out with guidelines on banks’ subsidiaries. The norms, expected to be announced soon, will bring to fruition a glide path that has engaged the regulatory authorities since 2007.
The new guidelines from Mint Road will entail a thorough review and recast by banks of their current exposure to subsidiaries, which straddle businesses ranging from investment banking and mutual funds to insurance and broking. In some cases, they have