{"id":9330,"date":"2019-08-20T17:05:14","date_gmt":"2019-08-20T11:35:14","guid":{"rendered":"http:\/\/factly.forumias.com\/?p=9330"},"modified":"2019-08-20T17:05:14","modified_gmt":"2019-08-20T11:35:14","slug":"govt-exempts-nbfcs-listed-firms-from-debenture-reserve-requirements","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/govt-exempts-nbfcs-listed-firms-from-debenture-reserve-requirements\/","title":{"rendered":"Govt exempts NBFCs, listed firms from debenture reserve requirements"},"content":{"rendered":"\n<ol class=\"wp-block-list\"><li>Government has removed Debenture Redemption Reserve(DRR) requirement for listed companies,Non banking financial companies (NBFCs) and Housing finance companies(HFCs).<\/li><li>At present,these companies have to set up a DRR to the tune of 25% of the value of their outstanding debentures.However,banking companies and financial institutions are already exempted from creating DRRs.<\/li><li>This move will make it cheaper for these companies to raise funds and deepen the bond market.It will also create a level-playing field between NBFCs and commercial banks.<\/li><li><strong>Debenture<\/strong> is an instrument of debt executed by the company acknowledging its obligation to repay the sum at a specified rate and also carrying an interest.It is one of the methods of raising loan capital of the company.<\/li><li>Debenture redemption reserve(DRR) is a requirement imposed on Indian corporation that issue debentures where they must create a debenture redemption service to protect investors from the possibility of a company defaulting.&nbsp;<\/li><li>This rule offers investors a measure of protection because debentures are not backed by an asset or any other form of collateral.<\/li><\/ol>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Government has removed Debenture Redemption Reserve(DRR) requirement for listed companies,Non banking financial companies (NBFCs) and Housing finance companies(HFCs). At present,these companies have to set up a DRR to the tune of 25% of the value of their outstanding debentures.However,banking companies and financial institutions are already exempted from creating DRRs. This move will make it cheaper&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/govt-exempts-nbfcs-listed-firms-from-debenture-reserve-requirements\/\">Continue reading <span class=\"screen-reader-text\">Govt exempts NBFCs, listed firms from debenture reserve requirements<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[3800,3801,3609,928],"class_list":["post-9330","post","type-post","status-publish","format-standard","hentry","category-economy","tag-debenture","tag-drr","tag-hfc","tag-nbfc","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704849221},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/9330","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=9330"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/9330\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=9330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=9330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=9330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}