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RBI reduces margin on bank finance from 50% to 40%
New Delhi, May 18: The Reserve Bank of India has reduced the margin that banks have to maintain for financing shares, initial public offers and issue of guarantees to 40 per cent from the current 50 per cent.
New Delhi, May 18: The Reserve Bank of India has reduced the margin that banks have to maintain for financing shares, initial public offers and issue of guarantees to 40 per cent from the current 50 per cent.
The decision was made on the recommendation of the task force constituted for monitoring developments in the financial market following Monday's stock market crash, the Central Bank said in a statement.
Furthermore, the minimum cash margin of 25 per cent, within the margin of 50 per cent, stands reduced to 20 per cent, the Central Bank said.
The margin against shares was increased to 50 per cent from 40 per cent in January 2004, it said.
Bureau Report
The decision was made on the recommendation of the task force constituted for monitoring developments in the financial market following Monday's stock market crash, the Central Bank said in a statement.
Furthermore, the minimum cash margin of 25 per cent, within the margin of 50 per cent, stands reduced to 20 per cent, the Central Bank said.
The margin against shares was increased to 50 per cent from 40 per cent in January 2004, it said.
Bureau Report