NEW WINDOW FOR NON - BANKING FINANCIAL COs.
In a bid to help non-banking financial companies (NBFCs) meet their fund requirements and maintain capital adequacy requirements, the Reserve Bank of India has allowed these
companies to issue perpetual debt instruments (PDI) in Indian rupee to raise funds. The PDIs will be eligible for inclusion as Tier I Capital to the extent of 15 per cent of total Tier I capital of the company as on March 31 of the previous accounting year. The amount of PDI, which is in excess
of the amount allowed as Tier I capital, would qualify as Tier II capital. RBI has stipulated Rs. 5 lakh
as the minimum investment in each issue by a single investor. All NBFCs with an asset size of more than Rs. 100 crore can raise funds by issuing PDI as bonds or debentures, but these funds would not be treated as public deposits.
companies to issue perpetual debt instruments (PDI) in Indian rupee to raise funds. The PDIs will be eligible for inclusion as Tier I Capital to the extent of 15 per cent of total Tier I capital of the company as on March 31 of the previous accounting year. The amount of PDI, which is in excess
of the amount allowed as Tier I capital, would qualify as Tier II capital. RBI has stipulated Rs. 5 lakh
as the minimum investment in each issue by a single investor. All NBFCs with an asset size of more than Rs. 100 crore can raise funds by issuing PDI as bonds or debentures, but these funds would not be treated as public deposits.
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