In Sept 2011, RBI issued guidelines for permitting banks and NBFCs to set up IDFs to help meet long term financing for the sector
IDFs would be set up either as MFs or NBFCs
NBFC sponsoring IDF-MF should have a minimum net owned funds of Rs 300 crore and CAR of 15 percent
Besides, its NPAs should be less than 3% of net advances and the NBFCs should have been in existence for at least five years and earning profits for the last three years
Banks and NBFCs would be eligible to sponsor IDFs as mutual funds with prior approval of the RBI
SEBI has amended the Mutual Funds Regulations to provide regulatory framework for IDF-MFs
Banks acting as sponsors to IDF-MFs would be subject to existing prudential limits including limits on investments in financial services companies and limits on capital market exposure
[/lockercat]HPPCS Notes brings Prelims and Mains programs for HPPCS Prelims and HPPCS Mains Exam preparation. Various Programs initiated by HPPCS Notes are as follows:-
