tag:blogger.com,1999:blog-3202774368551476669.post1399830777319826112..comments2023-09-15T16:21:31.980+05:30Comments on INDIAN CORPORATE LAW: RBI Guidelines on Private Placement of Debentures by NBFCs – Part 2Umakanth Varottilhttp://www.blogger.com/profile/12438677982004444359noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-3202774368551476669.post-23106562934236642332013-09-04T07:21:57.676+05:302013-09-04T07:21:57.676+05:30Whether Subordinated debt issued by NBFC is treate...Whether Subordinated debt issued by NBFC is treated as a debenture within the meaning of Section 2(12) of the Companies Act, 1956. And whether the NBFCs can issue Subordinated Debt to more than 49 subscribers with less than Rs. 25 lacs. Please comment.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3202774368551476669.post-18876993504107638472013-08-29T08:24:12.419+05:302013-08-29T08:24:12.419+05:30Whether restriction of 49 subscribers and Rs. 25 l...Whether restriction of 49 subscribers and Rs. 25 lac will apply in case of issue of subordinated debt issued in the nature of debentures. Whether Gap of 6 months will also apply to such issues. Since the definition of private placement means issue of NCD. please comment.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3202774368551476669.post-10077938805287171172013-07-11T14:50:31.484+05:302013-07-11T14:50:31.484+05:30I would beg to differ on the fact that the June 27...I would beg to differ on the fact that the June 27th RBI circular, ("Circular"), (read with the July 2nd clarification) does not apply to a Housing finance company registered with the NHB. Housing finance companies, stock-broking companies, insurance companies or other companies which are “financial institutions” would all be viewed a “non-banking financial company” as defined in the Circular, irrespective of whether such companies are exempted from registering with the RBI as an NBFC. The Circular refers to Section 45 I (f) read with Section 45 I (c) of the RBI Act, 1934 for the definition of a “Non-Banking Financial Company”. Section 45 I (f) of the RBI Act, 1934 inter-alia defines a “non banking financial company” as a financial institution which is a company. The Master Circular on Exemptions from the Provisions of RBI Act, 1934 dated July 2, 2013 only provides clarity that companies which are financial institutions and are regulated by regulators other than RBI need not register with RBI as NBFCs and need not comply with certain provisions of the RBI Act, 1934, and other specified directions circulars and notifications issued by RBI. The aforesaid Master Circular however does not anywhere state that such entities will not be considered as “non banking financial companies” as defined in Section 45I (f) of the RBI Act. Accordingly, housing finance companies, stock-broking companies, insurance companies or other companies which are “financial institutions” as defined in the RBI Act, would fall within the purview of the definition of “non banking financial companies” under the RBI Act, 1934 and consequently the Circular would apply to such companies.Anonymousnoreply@blogger.com