The securities acquired by the banks with the intention to trade by taking advantage of the short-term price/interest rate movements will be classified under Held for Trading (HFT). The securities which do not fall within the above two categories will be classified under Available for Sale. The banks will have the freedom to decide on the extent of holdings under Available for Sale and Held for Trading categories taking into account various aspects such as basis of intent, , trading strategies, risk management capabilities, tax planning, manpower skills, capital position. HFT securities are to be sold within 90 days from the date of acquisition. Profit or loss on sale of investments in both the categories will be taken to the Profit & Loss Account.
