Unlisted NCDs may be treated as term loans, carry RBI moratorium benefit

Sebi is likely to allow corporate houses to treat unlisted non-convertible debentures as 'term loans'.

India Inc is likely to get further relief on the loan repayment front, particularly with regard to unlisted debentures.

Sources say the Securities and Exchange Board of India (Sebi) is likely to allow corporate houses to treat unlisted non-convertible debentures (NCDs) as ‘term loans’.
 

This will allow the three-month moratorium announced by the Reserve Bank of India (RBI) to be applied on these instruments.

According to the sources, Sebi has initiated talks with RBI on this issue of including both secured and unsecured NCDs under moratorium.
 

“The regulator has received certain inputs in this regard and is in