IDBI bank to launch India's first infrastructure fund - 10 Feb 2012 - Economic Times
Published On :2012-02-10 11:43:00IDBI Bank chairman and managing director RM Malla declined to comment.
According to current guidelines, IDFs can raise funds from investors,
primarily domestic and offshore insurance and pension funds, trusted sources for
The fund established under a trust will be a mutual
fund that will issue units and will be regulated by Sebi while a company-based
fund will be a non-banking finance company that will issue bonds and will be
regulated by the RBI.
An IDF-NBFC can invest in
public-private partnership projects or schemes that are in operation for at
least a year. It is required to have a capital adequacy ratio of 15% but
its exposure in these projects will have risk weight of 50%. As a result, an
IDF-NBFC needs to maintain a capital adequacy ratio for only 50% of the loan
given to such companies.