Headlines

IDBI bank to launch India's first infrastructure fund - 10 Feb 2012 - Economic Times

Published On :2012-02-10 11:43:00

IDBI 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 long-term finance.

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.