Reserve Bank of India Directions for Mortgage Guarantee Companies
The Reserve Bank of India (RBI) has issued directions for Mortgage Guarantee Companies, effective from February 15, 2008.
Applicability: These directions apply to all Mortgage Guarantee Companies registered with the RBI.
Definitions: The directions define key terms such as “Mortgage Guarantee Company”, “Mortgage Guarantee”, and “Investment”.
Investment Policy: The directions outline the investment policy for Mortgage Guarantee Companies, including the pattern of investment, income recognition, and accounting of investments.
Pattern of Investment: The directions specify the types of investments allowed for Mortgage Guarantee Companies, including government securities, bonds, and other debt instruments.
Income Recognition: The directions provide guidelines for recognizing income from investments, including the treatment of interest and dividend income.
Accounting of Investments: The directions outline the accounting treatment for investments, including the valuation and classification of investments.
Note: These directions are subject to amendments and updates, with the latest amendments effective up to June 30, 2015.
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