RBI guidelines on subordinated debt raising by Primary Dealers
Mumbai: In its guidelines on capital adequacy standards — Guidelines on Issue of Subordinated Debt Instruments — Tier II and Tier III Capital, for primary dealers (PD) — the RBI has said that the amount of subordinated debt to be raised may be decided by the board of directors of the PD.

The instruments should be `plain vanilla' with no special features such as options, and the debt securities shall carry a credit rating from a credit rating agency registered with the Securities and Exchange Board of India, the RBI said.

In the case of issue of unlisted subordinated debt, the disclosure requirements prescribed by SEBI for listed companies in terms of the above guidelines should be complied with.

Necessary permission from the Foreign Exchange Department of the RBI should be obtained for issuing the instruments to NRIs and FIIs.

PDs should comply with the terms and conditions, if any, prescribed by SEBI or other regulatory authority with regard to the issue of instruments. Investments by PDs in subordinated debt of other PDs and banks will be assigned 100 per cent risk weight for capital adequacy purpose. Further, the PD's aggregate investments in Tiers II and III bonds issued by other PDs, banks and financial institutions shall be restricted to up to 5 per cent of the investing PD's total capital. The capital for this purpose will be the same as that reckoned for capital adequacy.
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UCO Bank brings down FCNR (B) rates
Kolkata: UCO Bank has reduced the interest rates on Foreign Currency Non-Resident (Banks) deposits. The revised rates will come into force from Monday.

For deposits held in US dollars, the interest rates will now be 2.16 per cent as compared to 2.29 per cent for the period from one year to less than two years, and 2.55 per cent (2.77 per cent) for the period from two years to less than three years, according to a UCO Bank press release.

For deposits of three years, the rates have been revised to 2.89 per cent (3.14 per cent).

For deposits held in British pounds, the depositors will get 4.79 per cent (4.84 per cent) for the period from one year to less than two years, 4.71 per cent (4.81 per cent) for the period from two years to less than three years and 4.73 per cent (4.84 per cent) for three years.

For euro deposits, the corresponding rates will be 2.05 per cent (2.11 per cent), 2.33 per cent (2.45 per cent) and 2.59 per cent (2.73 per cent).
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