Bank loans to housing finance companies (HFCs) for the purpose of refinancing home loans would now come in the priority sector lending category subject to an aggregate loan limit of Rs 10 lakh per borrower. For such loans, the interest rates charged by HFCs to the borrowers should be a maximum of two percentage points higher than the minimum interest rate of the lending bank.
The Securities and Exchange Board of India has clarified that an initial public offering (IPO) prospectus is a legal validity document and a company is legally bound to abide by the disclosures made therein as it forms the basis for raising money from the public.
The insurance regulator has published fresh draft guidelines on bancassurance (insurance sold at banks) under which a bank can either have one insurance partner across the country or choose to tie up with more than one insurer across different regions. In the second case, a bank needs to have a tie-up with each insurer for 10-20 regions. The regulator has divided the country into 40 regions.
The Insurance Regulatory and Development Authority has proposed that paint materials used in vehicles be included in the list of components (such as tyres, rubber and air bags) that have a fixed depreciation rate (currently, 50%) for the purpose of auto insurance policies. At present, insurers have different depreciation rates for paint materials.