https://www.taxtmi.com/news?id=1989 Prudential guidelines under Section 19 restrict banks' equity investments to prevent indirect undertaking of prohibited activities: subsidiaries may be formed only for permitted banking functions or with RBI approval; equity in financial services entities requires prior RBI approval and counts toward prudential ceilings; non financial investee holdings are capped relative to the investee's paid up capital or the bank's capital and reserves, with trading category holdings included. Aggregation rules and accounting standard tests determine control, and banks must review and regularise non conforming relationships or seek RBI approval. en-us Sun, 10 Jul 2011 21:44:31 +0530 Sun, 10 Jul 2011 21:44:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=1989 Prudential guidelines under Section 19 restrict banks' equity investments to prevent indirect undertaking of prohibited activities: subsidiaries may be formed only for permitted banking functions or with RBI approval; equity in financial services entities requires prior RBI approval and counts toward prudential ceilings; non financial investee holdings are capped relative to the investee's paid up capital or the bank's capital and reserves, with trading category holdings included. Aggregation rules and accounting standard tests determine control, and banks must review and regularise non conforming relationships or seek RBI approval. News - Sun, 10 Jul 2011 21:44:31 +0530 https://www.taxtmi.com/news?id=1989