SBI DFHI Invest Plus Scheme

Hi I would like to know the role of Discount and Finance House of India a subsidiary of State Bank of India?

[Shaleen]

DFHI was formed on March, 1988 under ³TheCompanies Act, 1956'. By Act, DFHIbecame the auxiliary of SBI.

DFHI started its operations on April, 1988.

As on 12 August, 2010,the SBI Bank has contributed duringthe quarter further measure of Rs.37.64 crore in SBI DFHILtd. expanding their shareholding to 62.49%.

The paid up capital of Rs. 200 crores contributed jointly by RBI, Public Sector Banks and all India Financial Institutions in the extent of 5:3:2.2. The approved capital of the organization is Rs 250 crores.3. Renegotiate office of various sorts from the RBI against the guarantee of instruments it bargains in.4. Credit extension from banks on a consortium premise of Rs. 100Crore from 28 open area banks.

The principle target of expanding the exchange in or turnover of the currency market resources.

To encourage the developing so as to smoothen of the transient liquidity imbalance a dynamic currency market and integrating the different fragment of currency business sector.

Encourage currency market exchange of little and medium sized establishments that are not general members in the market.

To advance auxiliary business sector in transient money market instruments i.e. to be a dynamic dealer in money market instruments as opposed to a minor vault, and thereby, confer enhanced liquidity to transient money market instruments.

DFHI deals in the following instruments / products:

Treasury Bills

Government Securities

Certificates of Deposit

Commercial Papers

Call (overnight) Money, Notice money and Term Money

Interest rate swaps/Forward rate Agreements.