Thursday, October 15, 2015

SEBI seeks greater NBFC disclosures.

The Securities and Exchange Board of India (SEBI) has asked Non-Banking Financial Companies (NBFCs) to issue detailed disclosures while launching a public offer of debt securities to raise funds.The NBFCs would now need to disclose

  • Aggregated exposure to the top 20 borrowers with respect to the concentration of advances, against the current requirement for top 10 borrowers.
  • The details of loans, which are overdue and classified as non-performing according to RBI guidelines.
  • If any of the borrowers of the NBFCs form part of the ‘group’ as defined by RBI, appropriate disclosures would need to be made in a prescribed format.
  • The name of all such borrowers, the amount of advances, and the percentage of total assets under management.
  • These disclosures would include a portfolio summary on the sectors to which the NBFCs have lent.
  • The quantum and percentage of secured and unsecured borrowings would also need to be mentioned.

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