Financing of Initial Public Offerings (IPOs)
Banks should ensure that no advances exceed the limit of Rs. 10 lakhs to any individual against security of shares, convertible bonds, convertible debentures, units of equity oriented mutual funds and PSU bonds for subscribing to IPOs. Further, the Bank should not extend any credit or financing to Corporates for investment in other companies’ IPOs and to NBFCs for further lending to individuals for IPOs.