| Some of our best photos shot recently. Slideshow A man walks past a logo of the Reserve Bank of India (RBI) in front of its building in Kolkata May 21, 2012. Credit: Reuters/Rupak De Chowdhuri/Files MUMBAI | MUMBAI (Reuters) - The Reserve Bank of India said on Wednesday it would hold off implementing a notification issued last week that mandated a minimum wait of six months between two private placements from a non-bank financial firm. Instead, the RBI said a decision on "the appropriate minimum time gap" would be taken by the central bank "in due course," after the industry raised some concerns about the measures. The clarification could allay the concerns of non-banking financial firms (NBFC), which rely heavily on capital markets to fund their businesses but have attracted less regulatory oversight than banks. The RBI said NBFCs would be further given time until the end of September to put in place clear plans for raising funds. "This notification has come as a relief for NBFCs as they have been given a time period of 3 months to chalk out a resource-raising strategy and make representations to RBI if needed," said B. Prasanna, chief executive at ICICI Securities Primary Dealership. The guidelines RBI issued last week had raised concerns about their impact on the NBFC sector, whose debt sales reached 725 billion rupees in the financial year ended March, one-fifth of the total private placement of 3.5 trillion rupees, according to data provider Prime Database. The central bank added that its previous notification would not be applicable for primary dealers, while defining private placements as "non-public" issuances of non-convertible debt by NBFCs, clearing doubts if last week's provisions would have applied to convertible bonds. In another key clarification, the RBI said the earlier provisions would not apply to core investment companies, or special investment vehicles that are created by some NBFC groups to raise funds on behalf of the group. However, the RBI kept other provisions such as the mandate that debt issues must be fully secured by underlying assets, and that only up to 49 investors can buy into a private placement. (Reporting by Archana Narayanan; Editing by Rafael Nam and Jijo Jacob)
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.  via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNEzzOgV8HszNCuAKbDhWUrX0-cYIg&url=http://in.reuters.com/article/2013/07/03/india-centralbank-nbfc-idINDEE96203I20130703 | |||
| | |||
| | |||
|
Wednesday, 3 July 2013
RBI puts on hold debt private placement rules for NBFCs - Reuters India
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment