Attorneys at Law Since 1964

NBFCs to raise funds through shorter tenor bonds and commercial papers

NBFCs to raise funds through shorter tenor bonds and commercial papers

Master direction dated 21.04.2016

 

 

According to The Infrastructure Debt Fund-Non-Banking Financial Companies (Reserve Bank) Directions, 2011 issued vide Notification No.DNBS.233/CGM(US)-2011 dated November 21, 2011 issued by the RBI, the IDF-NBFC’s were allowed to raise resources through issue of bonds of minimum five-year maturity.

However, through the current notification dated 21.04.16 the Central government allows IDF-NBFCs to raise funds through shorter tenor bonds and commercial papers (CPs) from the domestic market to the extent of up to 10 per cent of their total outstanding borrowings.

 

Leave a comment

Newsletter


Offices

61, TTK Road, Alwarpet, Chennai 600 018

2283, 14th A Main Road, HAL 2nd Stage, Indiranagar, Bengaluru 560008

Top