Monday, October 13, 2025
  • Home
  • About us
  • Privacy policy
  • Advertise with us
  • Contact us
Fii News Logo
No Result
View All Result
  • Tenders
  • Projects
  • Markets
  • Manufacturing
  • Investment
  • Technology
  • Exports
Newsletter
  • Tenders
  • Projects
  • Markets
  • Manufacturing
  • Investment
  • Technology
  • Exports
Fiinews
No Result
View All Result
Home Banking & Finance

Reduced cost of capital to deepen bond market

Fiinews by Fiinews
August 20, 2019
in Banking & Finance, Budget, Company, Investment
Reading Time: 2 mins read
A A
0
0
SHARES
10
VIEWS
LinkedinShare on Twitter

DRR at 10% for unlisted companies

 

The Government has taken measure to reduce the cost of the capital raised by companies through issue of debentures which is expected to significantly deepen the Bond Market.

This comes as Corporate Affairs Ministry has amended the Companies (Share Capital & Debentures) Rules by removing Debenture Redemption Reserve (DRR) requirement for Listed Companies, NBFCs and HFCs.

The decision follows the Budget 2019-20 announcement by Finance and Corporate Affairs Minister Nirmala Sitharaman and the Government’s objectives of providing greater ‘Ease of Doing Business’ to companies in the country, as part of its 100 Days Action Plan.

Through these amendments, the provisions relating to creation of DRR have been revised.

The objective is:

To Remove the requirement for creation of a DRR of 25% of the value of outstanding debentures in respect of listed companies, NBFCs registered with RBI and for Housing Finance Companies registered with National Housing Bank (NHB) both for public issue as well as private placements;

Reduction in DRR for unlisted companies from the present level of 25% to 10% of the outstanding debentures.

Hitherto, listed companies had to create a DRR for both Public Issue as well as Private Placement of Debentures, while NBFCs & HFCs had to create DRR only when they opted for Public Issue of Debentures.

It is aimed at creating a level-playing field between NBFCs, HFCs and listed companies on the one hand and Banking Companies and All India Financial Institutions on the other, which are already exempted from DRR.

The rules, while retaining DRR requirement in India for unlisted companies, provide for reduction from a DRR of 25% to a DRR of 10% for such companies, so as to safeguard interests of investors. fiinews.com

Tags: Ministry of Corporate AffairsMinistry of FinanceReserve Bank of India
ShareTweetShare

Related Posts

SBF
Investment

Invest: SBF to be ASEAN gateway for India

by Fiinews
October 6, 2025
0
34

SEC will unlock opportunities for Singapore-India businesses The Singapore Business Federation (SBF), representing more than 32,000 companies as well as...

SIA Engineering
Investment

Invest: India-Singapore partnership reaffirmed

by Fiinews
October 6, 2025
0
34

Goyal highlights investment opportunities in Singapore Minister of State, Ministry of Trade & Industry Gan Siow Huang has reaffirmed the...

Alorica logo blue.intranet

Invest: Alorica created 1,500 jobs in Bangalore

October 5, 2025
19
Veranda

Invest: SNVA to acquire Veranda of Chennai

October 3, 2025
16
Circor hironisha

Invest: CIRCOR to acquire 2 Indian companies

October 1, 2025
20
Kredit Venture

Invest: Kredit Venture to serve tier 2&3 MSMEs

September 30, 2025
16
SBI YONO
Sabit

POPULAR NEWS

  • Cristina Dnv

    Projects: Indian yards set to build green ships, says DNV expert

    0 shares
    Share 0 Tweet 0
  • Market: Indian-origin UGF scales heritage consumer brands globally

    0 shares
    Share 0 Tweet 0
  • Technologies: Royal Diamond sponsors aerspace Industries’ drones in UAE

    0 shares
    Share 0 Tweet 0
  • Investments: Foreign investors see India as long-term destination for fund placings

    0 shares
    Share 0 Tweet 0
  • Markets: Blue Dart maintains positive outlook on India

    0 shares
    Share 0 Tweet 0

Fiinews.com features through news articles on business opportunities in the Indian market for the benefits of foreigners. It is also a platform for international businesses to showcase through elaborate articles on their products & services to the Indian consumers and corporations exploiting industrialisation of the country.

7Clicks Media is a Singapore based Media & PR company offering over 100,000
impressions via our targeted communication strategy.

It is led by editor-in-chief Gurdip Singh who has worked over 45 years reporting on
Asian businesses.

Recent News

  • Tech: Google AI CoE with TechBharat
  • Market: Colaba sets trend of Casio timepieces
  • Tech: HCL joins MIT Media Lab
  • Project: PM launches Rs.35,400cr agri-schemes
  • Project: Energy security is pressing challenge

Pages

  • About US
  • ADVERTISE ON FIINEWS.COM
  • CONTACT US
  • EVENTS
  • FII-NEWS.COM PDF ARCHIVE
  • Home
  • News
  • PRIVACY POLICY

Subscribe to Newsletter

  • About
  • Advertise
  • Careers
  • Contact us

© 2024 FIINEWS - Design and developed by 7clicksmedia.

No Result
View All Result
  • Tenders
  • Projects
  • Markets
  • Manufacturing
  • Investment
  • Technology
  • Exports

© 2024 FIINEWS - Design and developed by 7clicksmedia.