RBI asks Lehman not to operate without approval

September 17th, 2008 - 12:23 am ICT by IANS  

Lehman BrothersMumbai, Sep 16 (IANS) The Reserve Bank of India (RBI) announced late Tuesday evening that it has asked Lehman Brothers’ Indian primary dealership and non banking financial arm not to undertake any transactions in India and abroad without prior approval.According to a statement issued by RBI, India’s central bank has directed Lehman Brothers Fixed Income Securities, a primary dealer, not to undertake transactions in government securities as a primary dealer in the primary market.

“Further, it has advised not to declare any interim dividend or remit any amount to its holding company or any other group company without the prior approval of RBI,” said the statement.

It also said the non-banking financial company (NBFC) Lehman Brothers Capital Pvt. Ltd would need prior approval of RBI before contracting any direct or indirect liability from any institution in India or outside India or making any foreign currency remittance.

Lehman Brothers Holdings Inc. filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Code Monday.

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