Effective yield comparison for tax-free bonds prevents violation of lending yield restrictions under companies law. Where the effective yield on tax-free bonds exceeds the prevailing Government Security yield closest to the loan tenor, there is no violation of sub-section (7) of section 186 of the Companies Act, 2013; the comparator may be the prevailing yield of the one-year, three-year, five-year or ten-year Government Security that most closely matches the tenor.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Effective yield comparison for tax-free bonds prevents violation of lending yield restrictions under companies law.
Where the effective yield on tax-free bonds exceeds the prevailing Government Security yield closest to the loan tenor, there is no violation of sub-section (7) of section 186 of the Companies Act, 2013; the comparator may be the prevailing yield of the one-year, three-year, five-year or ten-year Government Security that most closely matches the tenor.
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