Section 14
SEC. 14. The same Act is hereby amended by adding the following section after Section twenty-one thereof, which reads as follows: "SEC. 21-A. Commercial banks, including Government banks and foreign banks with existing local branches, may invest in equities of the following allied undertakings: warehousing companies, leasing companies, storage companies, safe deposit box companies, companies engaged in the management of mutual funds but not in the mutual funds themselves, banks other than rural banks, and such other similar activities as the Monetary Board may declare as appropriate from time to time: Provided, That (a) the total investment in equities shall not exceed twenty-five per cent (25%) of the net worth of the bank, (b) the equity investment in any one enterprise shall not exceed fifteen per cent (15%) of the net worth of the bank, (c) the total equity investment of the bank in any single enterprise shall remain a minority holding in that enterprise, except where the enterprise is not a financial intermediary, and (d) the equity investment in other banks shall be deducted from the investing bank's net worth for purposes of computing the prescribed ratio of net worth to risk assets. Equity investments shall not be permitted in non-related activities. "Where the allied undertaking is a wholly or majority-owned subsidiary of the bank, it may be subject to examination by the Central Bank. "The authority of commercial banks, the majority of the voting stock of which is owned by foreigners and/or foreign entities, and any bank which may be established as a result of the local incorporation of a branch of a foreign bank pursuant to Section sixty-eight of this Act, to invest in equities of banks, shall be limited to the purchase of foreign-owned equities in local banks."