Finance : A non-convertible debenture is a fixed income instrument where the issuer agrees to pay a fixed rate of interest to the investor. ...
Fema / RBI : It was observed that issuance of the NCDs with original maturity of less than 1 year was unregulated either by Securities and Exch...
Fema / RBI : Tightening investment norms, the Reserve Bank today directed banks not to invest in non-convertible debenture (NCD) of corporates ...
Fema / RBI : RBI directs JM Financial Products Limited to cease IPO and debenture financing due to serious deficiencies. Learn about the regula...
Fema / RBI : IDMD. PCD.No. 26/14.03.05/2010-11 we advise that henceforth PDs are permitted to invest in NCDs with original or initial maturity ...
Fema / RBI : Please refer to circular DBOD.BP.BC.44/21.04.141/2003-04 dated November 12, 2003 on Prudential Guidelines on Banks’ Investment i...
Fema / RBI : Raising funds through issuance of NCDs in multiple tranches based on a single valid rating for the consolidated amount, each tranc...
Fema / RBI : The Reserve Bank of India, having considered it necessary in public interest and to regulate the financial system of the country t...
RBI directs JM Financial Products Limited to cease IPO and debenture financing due to serious deficiencies. Learn about the regulatory action and its implications.
IDMD. PCD.No. 26/14.03.05/2010-11 we advise that henceforth PDs are permitted to invest in NCDs with original or initial maturity up to one year issued by the corporates (including NBFCs). However, their investments in such unlisted NCDs should not exceed 10 per cent of the size of their non-G-Sec portfolio on an on-going basis.
Tightening investment norms, the Reserve Bank today directed banks not to invest in non-convertible debenture (NCD) of corporates unless they disclose the purpose for which the funds are being raised. “While investing in such instruments banks should
Please refer to circular DBOD.BP.BC.44/21.04.141/2003-04 dated November 12, 2003 on Prudential Guidelines on Banks’ Investment in Non-SLR Securities which, inter alia, advised the banks that they should not invest in Non-SLR securities of original maturity of less than one-year, other than Commercial Paper and Certificates of Deposits which are covered under RBI guidelines.
Raising funds through issuance of NCDs in multiple tranches based on a single valid rating for the consolidated amount, each tranche need not be separately certified by the auditor (in compliance with section 8.2 of the NCD Directions). However, where the issuer obtains a separate/fresh rating for an issuance, such issuance must be backed by an auditor’s certificate confirming the issuer’s compliance with the eligibility criteria for issuance.
A non-convertible debenture is a fixed income instrument where the issuer agrees to pay a fixed rate of interest to the investor. The fixed-income instrument cannot be converted into equity of the issuing company and is very different from convertibl
It was observed that issuance of the NCDs with original maturity of less than 1 year was unregulated either by Securities and Exchange Board of India (SEBI) or Government of India (GOI). Further, these instruments were issued with call / put options embedded in it, which imparted a ‘demand-liability’ like character to these instruments.
The Reserve Bank of India, having considered it necessary in public interest and to regulate the financial system of the country to its advantage, in exercise of its powers conferred under sections 45K, 45L and 45W of the Reserve Bank of India Act, 1934 and of all the powers enabling it in this behalf, hereby gives to the agencies dealing in securities and money market instruments, the following directions for issuance of Non-Convertible Debentures (NCDs) of original or initial maturity up to one year.
