Wednesday, 12 June 2013

Recent rulings that can affect your portfolio

A look at recent rulings which can affect you -

BANKING

The Reserve Bank of India has said that banks may assign zero risk weight for the portion of home loans guaranteed under the Credit Risk Guarantee Fund Trust for Low Income Housing scheme. The balance loan amount would attract a risk weight as appropriate to the counter-party. If the loan amount covered by the credit guarantee scheme becomes nonperforming, no provision need be made towards it.

CAPITAL MARKETS

The deadline for companies to comply with the new guidelines on employee benefit schemes involving securities of the company has been extended from 30 June 2013 to 31 December 2013. The revised norms require that such schemes do not involve purchase of equities through stock exchanges.

COMMODITIES

The Forward Markets Commission has extended the deadline for implementation of mandatory text message and email alert system for clients to July 1. Earlier, commodity stock exchanges were instructed not to execute any trade without the alerts. A penalty of Rs 500 per trade executed without SMS or email alerts had been proposed. The regulator has also raised the limit of compensation paid to clients under the Investor Protection Fund from Rs 25 lakh to Rs 2 crore.

INSURANCE

A committee on insurance broking, which submitted its report to the Insurance Regulatory and Development Authority in May, has recommended establishing a singlewindow complaint resolution system for customers.

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