Marketable securities u/s 45-i(c)(ii) means

Marketable securities u/s 45-I(c)(ii) under RBI Act 1934 refer to financial instruments that can be easily bought or sold in the market. These securities are typically liquid, meaning they can be quickly converted into cash without significant loss of value. Examples of marketable securities include: - Government securities (e.g., treasury bills, government bonds) - Shares (equity stocks) - Debentures (convertible or non-convertible) - Commercial paper - Certificates of deposit - Repos (repurchase agreements) Regarding investments in mutual funds, they are generally considered marketable securities. However, it's essential to note that: - Only those mutual fund investments that are listed on a recognized stock exchange and can be freely traded are considered marketable securities. - Investments in close-ended mutual funds or those with restrictions on transferability may not be considered marketable securities.

some information about marketable secuirities as desired:

• Investment in government securities

  Residuary non-banking companies (RNBCs) must invest at least 15% of their total liabilities to depositors in securities issued by the central or state governments. 

   
• Investment in mutual funds

  RNBCs can invest up to 2% of their total liabilities to depositors in debt-oriented mutual funds. The total investment in mutual funds cannot exceed 10% of total liabilities to depositors. 

   
• Non-banking financial company (NBFC) reserve fund

  NBFCs must create a reserve fund and transfer at least 20% of their net profit into it each year. This must be done before declaring any dividends. 

   
• Non-convertible debentures

  NBFCs can raise money by issuing non-convertible debentures with a maturity of more than one year. The minimum subscripttion per investor must be at least Rs. 1 crore. 

   
• Unsecured loans

  NBFCs can accept unsecured loans from promoters or their relatives. However, this exemption is only available until the loan from the financial institution is repaid

How did you interpret provisions of Section 45(1)(c)(ii) of the RBI Act, 1934 qua marketable securities ?

Thank you very much Sir