However, in view of the expertise in certain areas developed by Indian corporates over the years and the importance attached to leveraging of such expertise for enhancing the international presence of Indian corporates, w.e.f June 7, 2005, banks have been allowed to extend financial assistance to Indian companies for acquisition of equity in overseas joint ventures/wholly owned subsidiaries or in other overseas companies, new or existing, as strategic investment, in terms of a Board approved policy, duly incorporated in the loan policy of the bank.
In sharp contrast, today the Fed not only announces the rate but also gives a clear indication of future policy trajectory. Indeed, it is standard practice for central banks these days to indicate the policy rates, the rationale behind the policy action, the expected outcomes, and oftentimes to give forward guidance on future policy actions. 13.