Tuesday, January 15, 2013

CDR NORMS

NEW STRINGENCY

  • Promoters' contribution upped to 25% from 15%
  • Promoters must pledge 100% of their shares
  • Unconditional promoter guarantee
  • Lead bank can appoint director where necessary
  • Concessional interest rate can't be less than the base rate
  • Debt not to be converted into preference shares unless in exceptional circumstances
  • Creation of Trust and Retention account to monitor receivables and payments

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