In a bid to get a clearer picture of the equity holdings structures within conglomerates, the Reserve Bank of India (RBI) has formally begun discussions with banks on the holding company (HoldCo) model, Business Standard reported.

Banks, in the first round of interaction, have shown their willingness to transition to the HoldCo regime but have asked for a two-year window, citing issues on the compliance front, the paper reported citing a source.

The central bank has to come out with its guidelines by September 2019 and a draft will be placed in the public domain before that as well, the report quoted a source as saying.
"Along with the holdco structure, which is likely to be a non-operative entity (in sync with the ownership norms for banks operational since 2015), the RBI may also come up with guidelines on listing holdcos, the permitted lines of businesses for subsidiaries, cross-holdings among banks, the holdco, and the subsidiaries, and the regulatory mechanism to guide and monitor holdcos," the report added.

Published On : 06-05-2019

Source : Cnbc Tv 18