Govt allows infra finance companies to raise longer-term funds

Tags: News
The government has allowed infrastructure finance companies to issue secured debentures with a tenure of up to 30 years, a move that will help in raising long-term funds for the sector.

Besides, infrastructure debt fund non-banking financial companies (ID-NBFCs) have been allowed to issue secured debentures for up to 30 years.

"Similarly, housing finance companies have been allowed relaxed terms for maintaining debenture redemption reserve on lines similar to NBFCs registered with RBI (Reserve Bank of India). Necessary amendments in rules have been notified," the Ministry of Corporate Affairs said in a statement today.

A debenture redemption reserve is an account that can only be utilised to redeem debentures.

As per the 12th Five-Year Plan document, India is projected to require investments of about USD 1 trillion in infrastructure during 2012-17.

The government also clarified that companies can appoint an independent merchant banker, registered with market regulator Sebi, to prepare valuation reports required before making a preferential allotment of shares.

The firms can also engage an independent chartered accountant with a minimum experience of 10 years to prepare valuation reports, the statement said.

EDITORIAL OF THE DAY

  • It is for the market, not the government to decide the fares of private air carriers

    In a country where substantial lip service is paid to the glories of a free economy and laissez faire, there is enough evidence to suggest that in rea

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

New masters of the Financial Times

A few days ago, Japan’s leading financial daily Nihon Keizai ...

Anuja Sharma

Focus mindfully to get the result

Have you ever tried to light a fire using the ...

Gautam Gupta

Our fashion schools need to notch it up

“Creativity is the key to success and primary education is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture