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.