Banking & Finance

NBFCs raising money through private placement of NCDs

The RBI vide its circular dated February 20, 2015, has issued revised guidelines in relation to issue of non-convertible debentures ("NCDs") by the non-banking finance companies ("NBFCs") on private placement basis. In terms of the revised guidelines, any issue of NCDs by NBFCs on private placement shall inter-alia be governed by the following instructions:

• The minimum subscription per investor shall be INR 20,000;
• The issuance of private placement of NCDs shall be in two separate categories, those with a maximum subscription of less than INR 10 million and those with a minimum subscription of INR 10 million and above per investor;