Foreign banks can list in India from May 2009: RBI

HSBC, Citibank, ABN Amro and other foreign banks have the option of listing in India from May 2009. But this comes with a rider - they have to convert themselves into fully owned subsidiary foreign banks operate as branches in india, reports CNBC-TV18.This was stated by RBI Deputy Governor V Leeladhar in Washington. Leeladhar said that as per a two-phase roadmap released for foreign banks in consistence with WTO commitments, the RBI in the first phase between March 2005-09 had allowed them to operate through branches or set up 100 per cent wholly-owned
subsidiaries (WOS).

During this phase, permission for acquisition of shareholding in Indian private sector banks by eligible foreign banks will be limited to banks identified by RBI for restructuring.

They will also be allowed to list and dilute their stake after completion of a minimum prescribed period of operation. However, at least 26% of the paid-up capital of the subsidiary of the foreign bank should be held by resident
Indians at all times, he said.

Finally, foreign banks will be permitted to enter into M&As with any private sector bank, subject to the overall investment limit of 74 per cent.

However, foreign banks are not keen on listing in India as they are not eager for a fully owned subsidiary. They see no additional benefits from this.

Asian markets trading lower; Nikkei down 512 points

Japan's benchmark Nikkei 225 index fell 3% in morning trade today in the wake of a sharp sell-off on Wall Street and a strengthening of the yen against major currencies.

Japan's Nikkei plunged 2.98% 512.04 points at 16,666.80.

Singapore's Straits Times fell 2.78% or 87.82 points at 3,071.08.

South Korea's Seoul Composite was down 2.06% or 29.63 points at 1,406.42.

Taiwan's Taiwan Weighted tumbled 1.51% or 116.03 points at 7,567.97.

Hong Kong's Hang Seng slipped 0.56% or 109.28 points at 19,333.14.