The Ministry has decided to allow Infrastructure Finance companies and Infrastructure Debt Fund Non-Banking Financial Companies (ID-NBFCs) to issue secured debentures for a period up to thirty years. Similarly, Housing Finance companies have been allowed relaxed terms for maintaining Debenture Redemption Reserve on lines similar to NBFCs registered with RBIs. Necessary amendments in Rules have been notified.

It has also been clarified that an independent Merchant Banker who is registered with SEBI or an independent Chartered Accountant in practice having a minimum experience of ten years may be engaged by companies for preparing valuation reports required before making preferential allotment of shares.

The relevant notification is available on the Ministry’s website at www.mca.gov.in

Issuance of long term secured debentures allowed for infrastructure finance and ID NBFCs, plus DRR relaxations for housing finance. Permission allows Infrastructure Finance Companies and ID NBFCs to issue secured debentures up to thirty years; Rules have been amended and notified. Housing Finance Companies receive relaxed Debenture Redemption Reserve requirements aligned with RBI registered NBFC treatment. Independent valuation reports for preferential allotments may be prepared by a SEBI registered independent Merchant Banker or an independent practising Chartered Accountant with minimum ten years' experience.