Piramal to provision for AIF exposure

BENGALURU, Dec 21 (Reuters): India's Piramal Enterprises said on Thursday that it would set aside funds to cover its exposure to alternate investment funds (AIF), days after the country's central bank tightened rules governing such holdings.
The Reserve Bank of India (RBI) on Tuesday barred all entities under its regulation, including banks and non-banking finance companies, from investing in AIFs that have investments in borrowers in the past 12 months.
As per the RBI's direction, regulated entities must liquidate their investments in AIFs within 30 days should the fund invest in an existing borrower. Failure to comply mandates the entity to make full provisions on these investments.
As of Nov. 30, the value of investments made by the company and Piramal Capital and Housing Finance in AIF units was 38.17 billion rupees ($458.78 million), it said in a filing.
Within the AIF investments, 6.53 billion rupees is attributed to funds with no exposure to debtor companies of Piramal Enterprises, the firm said.