Eligible Securities

Eligible Securities: Eligible securities are financial units such as shares, bonds and debentures that a bank is willing to accept as a collateral for loan.
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Shares that are listed on stock exchanges are only eligible for same; however, there are a few banks who make their own rules as far as these are concerned. Banks purchase, trade and hold these securities which can be both government bonds as well as agency securities.

Securities which are ineligible in this regard must be traded via separate subsidiary. The list of eligible securities is available on stock exchanges falling under different categories.

Edited and Updated 15th February 2014

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