Debenture Redemption Reserve (DRR)-Clarification.

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.... All Regional Directors All Registrars of Companies All Chambers of Commerce Reserve Bank of India Securities and Exchange Board of India Subject:- Debenture Redemption Reserve (DRR)-Clarification. One of the measures that the Central Government took to protect the interests of small investors in Companies Act was to insert Section 117C in the Companies (Amendment) Act, 2000 whic....

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....RR will be carved out of profits of the company only, there is no obligation on the part of the company to create DRR if there is no profit for the particular year. The Department of Company Affairs (DCA) has received a number of representations from Public Financial Institutions, Non-Banking Financial Companies, Professionals, FICCI, CII, Chambers, etc. seeking clarifications in this regard. ....

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....of India and Banking Companies for both public as well as privately placed debentures. For other FIs within the meaning of Section 4A, DRR will be as applicable to NBFCs registered with RBI. b. For NBFCs registered with the RBI under Section 45-IA of the RBI (Amendment) Act, 1997, 'the adequacy' of DRR will be 50% of the value of debentures issued through public issue as per present SEBI (Discl....