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Journalism of Courage
The Reserve Bank of India has decided to put on hold tougher norms for private placement of debt by non-banking financial companies (NBFCs). RBI had issued a notification last week stipulating a minmum period of six months between two private placements from a non-bank financial firm.
Since then,however,a large number of industry players have sought relief saying this may affect that asset liability management.
RBI has issued a fresh notification: It has been decided the instruction with regards to minimum gap between two successive issuances of non-convertible debentures (NCDs) may not be operationalised immediately.
The central bank,however,continues to maintain that raising of resources through frequently issued NCDs has resulted in inadequate resource planning and a higher transaction cost. A decision on the appropriate time gap would be taken by the bank in due course. said the RBI.
