RBI WARNS BANKS ON INVESTING IN ZERO COUPON BONDS
The Reserve Bank of India has told banks to put 'conservative limits' on their investments in zero
coupon bonds, including those by non-bank finance companies (NBFCs). Banks should invest
in zero coupon bonds only if the issuer builds up a sinking fund for the accrued interests and invests
in liquid investments or securities such as government bonds.
coupon bonds, including those by non-bank finance companies (NBFCs). Banks should invest
in zero coupon bonds only if the issuer builds up a sinking fund for the accrued interests and invests
in liquid investments or securities such as government bonds.
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