| The position with regard to above (as mentioned in paragraph 5 of Circular No. DBOD.BP.BC.83/21.04.137/2002-2003 dated 21st March, 2003) has been reviewed by the Reserve Bank of India and all Scheduled Commercial Banks (excluding RRBs & LABs) have been advised vide RBI's circular No. DBOD. BP. BC. 34 / 21.04.137/2003-2004 dated October 15, 2003 that only those Special Purpose Vehicles (SPVs) which comply with the following conditions viz; |
- They function as holding companies, special purpose vehicles, etc. with not less than 90 per cent of their total assets as investment in shares held for the purpose of holding ownership stake,
- They do not trade in these shares except for block sale,
- They do not undertake any other financial activities, and
- They do not hold/accept public deposits.
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| would not be treated as investment companies and therefore would not be considered as NBFCs for the limited purpose of being eligible for bank finance for PSU disinvestments of Government of India, subject to compliance with the other guidelines issued vide RBI's Circulars Nos. DBOD. BP. BC. 17 and 83/21.04.137/2002-2003 dated 16 August 2002 and 21 March 2003 respectively. |
| All other instructions specified in the above Circulars remain unchanged. |
