Restrictions on Other Loans and Advances :
Loans and Advances Against Shares, Debentures and Bonds
Banks are required to strictly observe regulatory restrictions on grant of loans and advances against shares, debentures and bonds which are
detailed in the July, 2015 Master Circular on Exposure Norms’. The restrictions, inter alia, on Loans and Advances – Statutory and Other Restrictions loans and advances against shares and debentures, are:
(a) No loans to be granted against partly paid shares.
(b) No loans to be granted to partnership/proprietorship concerns against the primary security of shares and debentures.