Reserve Bank Has Released A Draft Guideline On Tuesday

Reserve Bank has released a Draft Guideline on Tuesday. Reserve Bank’s proposal to tighten the declaration of dividend of NBFCs with high NPAs.

The Reserve Bank has released a draft guideline on Tuesday to declare dividends for non-banking financial companies (NBFCs), ensuring financial discipline and transparency.

According to the proposed rules, only those NBFCs that meet the prescribed rules will be allowed to declare and distribute dividends.

According to the rules set by the Reserve Bank for this, the net non-performing assets (NPA) ratio of dividend-declaring NBFCs, including the year for which the dividend is being declared, from six percent in each year during the last three years.

Should be less. The Reserve Bank has invited comments on this draft circular from the concerned parties till December 24.

In the case of capital adequacy, the draft rules have stated that the ratio of capital to be placed against the risk capital of NBFCs accepting deposits and NBFCs not accepting significant deposits under the system should be at least 15.

This situation should be during the last three years including the year for which the dividend is being declared.

Similarly, for the Core Investment Company (CIC), its balance seat is said to have a coordinated net worth (ANW) of at least 30 percent of its total risk assets.

The condition has also been fixed for of balance seat. This situation has been stated necessary during the last three years including the year for which dividend is declared for CIC.

Stock Market Today: Market declines after reaching record level yesterday, Sensex opened below 46000.

After reaching a record level, today the stock market opened with a downward trend on Thursday, the fourth trading day of the week. The Bombay Stock Exchange’s flagship index Sensex opened down 104.08 points at 45,999.42.

At the same time, the National Stock Exchange’s Nifty fell by 40.60 points to open at the 13,488.50 level. The stock market closed sharply on Wednesday.

The Sensex was up 494.99 points for the first time and closed at 46103.50 above 46 thousand. The Nifty closed at the level of 13529.10 with a gain of 136.15 points.