Equity Desk

Equity Desk, a subset of Global markets Department, deals in equity investments in primary as well as secondary market. It also manages the Bank’s investment in Mutual Funds. Equity & Mutual Fund investments are part of Non-SLR Investments of the Bank. The framework for investments is defined in the Bank’s Domestic Investment Policy and Trading Policy. Apart from Bank’s internal policy, it is also guided by RBI guidelines, SEBI Guidelines & Guidelines formulated by respective Exchanges for Institutional Investors.

Investments in equity shares & mutual funds are restricted to the companies and mutual fund schemes which are part of the respective Universe. The scrips in the Equity Universe are short listed on the basis of specific themes, members of some important indices etc. It is approved by Corporate Centre Investment Committee-I (CCIC-I) and is reviewed at half-yearly intervals. Mutual fund Universe comprises of Liquid,Debt,Duration&Equity schemes which are shortlisted on the basis of Value Research rating,CPR ranking, Portfolio composition and various other parameters. The Universe is approved by various committees depending on their sanctioning powers


Important Regulatory Ceilings
  • Aggregate exposure of the bank to the Capital market in all forms should not exceed 40% of its net worth as on 31st March of previous year.

  • Overall ceiling for direct investment in shares & units of equity-oriented mutual funds – 20% of the Bank’s Net Worth.

  • Ceiling for investment in units of Liquid schemes of Debt Oriented Mutual Funds-10% of the Bank’s Net Worth.

  • Ceiling for HFT portfolio – 20% of the Bank’s net worth or Rs. 400 crore, whichever is lower.

  • (iv) Banks are not allowed to undertake arbitrage trading and short-selling of shares.