Temasek Holdings and the Government of Singapore Investment Corporation have requested the government to consider them as separate entities for all future investments in Indian entities.
The request has led RBI to postpone its approval for a proposal by Temasek and GIC to pick up 10 per cent each in ICICI Bank. The central bank had agreed to consider the request only as an exception.
These investments came into India following the comprehensive economic co-operation
agreement singed between India and Singapore.
Some sections within the government feel that it is possible to treat them as separate entities as is done in case of World Bank and its private investment arm -- the International Finance Corporation.
However, RBI is of the view that there cannot be a one-off approval and Temasek and GIC cannot be considered as separate entities as they belong to the same government -- the government of Singapore.