Warning non-banking financial companies (NBFCs) not to stray from norms for the issuance of non-convertible debentures, the Reserve Bank of India (RBI) on Friday said instances of breach of such rules had come to light. “It has come to the notice of the Reserve Bank that some NBFCs have raised funds under private placements by issuing NCDs of maturity less than 90 days. This is in clear violation of issuance of non-convertible debentures (Reserve Bank) Directions, 2010,” RBI said in a notification. It added NBFCs could issue NCDs with a tenor of 90 days to one year.
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