| Log in

RBI puts on hold plans to restrict debt private placements for NBFCs

03 July, 2013

The Reserve Bank of India on Wednesday said it would hold off from implementing a notification issued last week that mandated a minimum wait of six months between two private placements from a non-bank financial firm (NBFC).

Instead the RBI said “a decision on the appropriate minimum time gap would be taken” by the central bank “in due course.”

The RBI rules last week had created confusion among bankers and issuers. The NBFC sector tends to have less regulatory oversight than banks and relies heavily on capital markets to fund its business.

The central bank also said its prior notification would not be applicable for primary dealer issuers, meaning they would be exempt from the RBI’s notification on private placements for NBFCs.

The RBI also clarified that under its notification last week private placements would be defined as “non-public” issuances of non-convertible debt by NBFCs.

Last week bankers had cited confusion about whether the private placements mentioned by RBI were meant for convertible or non-convertible debt.


Leave Your Comment
RBI cracks down on debt sales by non-bank finance firms

RBI cracks down on debt sales by non-bank finance firms

Reuters 4 years ago
The Reserve Bank of India has imposed restrictions on debt sales by non-bank...
RBI eases norms for infrastructure debt funds

RBI eases norms for infrastructure debt funds

Ishaan Gera 3 years ago
The Reserve bank of India (RBI) provided a new platform to infrastructure debt...
RBI Allows Banks & NBFCs To Sponsor Infrastructure Debt Funds

RBI Allows Banks & NBFCs To Sponsor Infrastructure Debt Funds

TEAM VCC 6 years ago
The Indian central bank on Friday has allowed banks and non-banking financial...
No Comments

RBI puts on hold plans to restrict debt private placements for NBFCs

Powered by WordPress.com VIP