Banks Urged To Ensure Exit Clause In Selloff Funding

The central bank has asked banks which fund bidders in PSU selloffs to ensure that the shares pledged with it can be sold during the lock-in period.

As per the Reserve Bank of India guidelines, the documentation between the government and the successful bidder should contain a provision permitting the pledgee (bank) to liquidate the shares even during the lock-in period in case of a shortfall in margin requirement or default by the borrower.

However, as per the Centre