Raising Money through Private Placement by NBFCs-Debentures etc. As certain adverse features have come to the notice of the Reserve Bank in private placements by certain NBFCs, it has been decided to put in place a minimum set of guidelines (given in the annex) for compliance by all NBFCs. The Guidelines require NBFCs to space out such issuances and also aim to bring NBFCs at par with other financial entities as far as private placement is concerned by restricting the maximum number of subscribers to forty nine (currently the ceiling of investors stipulated by the Companies Act 1956 for private placement is not applicable for NBFCs). It may be noted that all other extant guidelines on private placement remain unchanged. The provisions of these guidelines will however override other instructions in this regard, wherever contradictory. For Details taxandlawdirectory/content/rbi-2012-13560-dnbdpd-cc-no-33003100012012-13-raising-money-through-private-placement-nbfcs
Posted on: Fri, 28 Jun 2013 06:56:00 +0000
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