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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sebi’s latest ban on 260 entities plugs a major loophole for stock manipulation

    Last week, the capital market regulator, Securities and Exchange Board of India (Sebi) banned 260 entities from dealing in the securities market for m

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Kumar Jain

Nuances in managing joint ventures

This is an age of collaboration. A seemingly simple device ...

Kuruvilla Pandikattu SJ

Finding the missing child of Christmas

Christmas is basically the feast of a helpless child. The ...

Shona Adhikari

Why Indian art auctions are here to stay

With Christie’s second India sale just over in Mumbai, we ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture