Section 45IB(1) in The Reserve Bank of India Act, 1934
(1)Every non-banking financial company shall invest and continue to invest in India in unencumbered approved securities, valued at a price not exceeding the current market price of such securities, an amount which, at the close of business on any day, shall not be less than five per cent. or such higher percentage not exceeding twenty-five per cent. as the Bank may, from time to time and by notification in the Official Gazette, specify, of the deposits outstanding at the close of business on the last working day of the second preceding quarter:Provided that the Bank may specify different percentages of investment in respect of different classes of non-banking financial companies.
