India's sets stiffer bank investment norms

INDIA - The Reserve Bank of India (RBI) said on Apr 23 it had set more stringent guidelines for banks' exposures to the stock market following recommendations made by an expert panel.

It said that advances made to individuals against shares and debentures and guarantees made on behalf of stockbrokers will be included in a ceiling which caps banks' investments in equity markets to five percent of their previous year's advances.

Earlier, banks were free to fix their own prudential ceilings for lo