RBI relaxes NCD issue norms for NBFCs

In order to facilitate the process of moving into a more robust asset liability management in a non-disruptive manner,it has been decided that the instruction with regard to minimum gap between two successive issuance of privately placed non-convertible debentures NCDs may not be operationalised immediately, it said.

NBFCs which had mobilised Rs 72,500 crore through debt issues during the year ended March 2013 were worried over the RBI stipulation on the minimum time gap.

A decision on the appropriate minimum time gap would be taken by the RBI in due course. NBFCs,in the meantime,are advised to put in place before the close of business on September 30,a board-approved policy for resource planning which should cover the planning horizon and the periodicity of private placement, the RBI said.