India frees up bank investment rules

INDIA - Shares in India's leading banks have jumped by as much as 20%, after the government relaxed its rules on foreign investment.

Under the country's investment rules, non-Indian firms were previously prevented from owning more than 20% of a local bank.

But the government raised that ceiling to 49% over the weekend, one of a series of measures taken recently to speed up privatisation.

On the Bombay Stock Exchange, shares in ICICI, India's biggest bank, rose by the maximum 10% allowed, and