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NBFCs can raise bond in tranches within 6 month period: sources

By Religare
|

Under new debt financing norms for non-banking finance sector, firms will be able to raise bonds in tranches within a six-month period if registered under a single offer document, an official familiar with the central bank's said on Friday.

Tightening debt financing norms for NBFCs, the Reserve Bank of India on late Thursday set a minimum wait of six months between two private placements and also mandated that the debt be fully secured by underlying assets.

 

The official said the new guideline, minimum waiting period of 6-months, led to confusion among traders whether that meant that non-bank finance companies (NBFCs) would have to wait for six months between issuances.

The restrictions were imposed as the central bank was concerned that NBFCs were raising debt throughout the year on an on-tap basis, the official added.

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Story first published: Friday, June 28, 2013, 22:50 [IST]
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