Financial sector
28 Feb 2006
1
Banking, insurance and pensions
- Net capital support to banking sector at Rs22,808 crore, to be restructured to increase access to additional resources for lending to productive sectors.
- Bill on insurance to be introduced in 2006-07.
Capital market
- Limit on FII investment in government securities increased from $1.75 billion to $2 billion.
- Limit on FII investment in corporate debt increased from $0.5 billion to $1.5 billion.
- Ceiling on aggregate investment by mutual funds in overseas instruments raised from $1 billion to $2 billion. Requirement of 10 per cent reciprocal share holding removed.
- Limited number of qualified Indian mutual funds to be allowed to invest cumulatively up to $1 billion in overseas exchange traded funds.
- Investor protection fund to be set up under SEBI.
- RBI''s anonymous electronic order matching trading module (NDS-OM) on its negotiated dealing system extended to qualified mutual funds, provident funds and pension funds.
- Single, unified exchange-traded market for corporate bonds to be introduced.
