Primary UCBs can issue equity shares, perpetual or redeemable preference shares, perpetual debt instruments, and long-term subordinated bonds.
The action may hamper the ability of private banks to issue new cards to customers in the near term due to their exclusive tie-ups with Mastercard.
Retail investors will be able to open an account directly with the central bank to gain access to primary issuance and secondary trading in government securities.
The banks include Credit Suisse, Central Bank of India, SBI, Bank of Baroda, Bank of Maharashtra, IndusInd Bank, and Indian Bank, among others.
SEBI proposes to allow superior voting rights shares to be issued to trusts and other corporate structures and to tweak other requirements.
FIs are asked to instead use 'any widely accepted ARR'. Currently, there is no consensus on a new ARR for India. SOFR is widely expected to be accepted.
The move is part of efforts to improve efficiency in the use of the margin capital and enhance market liquidity.
Cooperative banks should not outsource policy formulation, internal audit, KYC compliance, credit approval and portfolio management.
Liquid assets requirements imposed in November mean that asset allocation limits only apply to the non-liquid portion of portfolios.
The dividend ratio will be capped at 50 to 60 percent of a deposit-taking NBFC's profits, depending upon the nature of the business.
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