Friday, March 15, 2013

The Ministry of Corporate Affairs (MCA) has decided to clarify the adequacy of Debenture Redemption Reserve (DRR) as under:-

  • For All India Financial Institutions (AIFIs) and Banks: NIL
  • For Financial Institutions and NBFCs: 25% of publicly issued debenture & NIL for others
  • Listed Companies: 25% of publicly issued debentures and 25% on privately placed debentures.
  • Unlisted Companies: 25% on privately placed debentures
  • All companies are required to invest 15% of debenture falling due in the year in specified securities by 30th April each year.

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