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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