Regulatory requirements for debentures, Financial Management

The following guidelines are applicable for the issue of Fully Convertible Debentures (FCDs), Partly Convertible Debentures (PCDs) and Non-convertible Debentures (NCDs):

  1. Compulsory credit rating is required if conversion is made for FCDs after
    18 months.

  2. In case of NCD/PCD, credit rating is compulsory where maturity exceeds
    18 months.

  3. Before the NCDs or non-convertible portion of PCDs are rolled over, fresh credit rating shall be obtained within a period of 6 months prior to the date of redemption and communicated to the debenture holders before the rollover.

  4. The rating of commercial paper and fixed deposit is also compulsory.

The rating process of debt instruments commences at the issuer's request. Based on the tenure of the instruments, the rating agency will gather the requisite data.

Posted Date: 9/11/2012 1:29:15 AM | Location : United States







Related Discussions:- Regulatory requirements for debentures, Assignment Help, Ask Question on Regulatory requirements for debentures, Get Answer, Expert's Help, Regulatory requirements for debentures Discussions

Write discussion on Regulatory requirements for debentures
Your posts are moderated
Related Questions
Q. How to develop career strategy? in this step employees need to focus on developing the knowledge experience and skills necessary to market self to prospective organizations.

The Walter's model, thus relates the question of distributing the dividends and retaining the earnings to the investment opportunities that are available with the firm. (i) If a

Why do a Split? A 4 x 1 Split is an operation by which a shareholder now owns 4 shares for every share he/she had before. Logically, the stock market value of each of these new

Fixed Weight Aggregates Method In fixed weight aggregates method, the weights used are neither from base period nor from current period but from a representative period. These

Internal Rate of Return (IRR) : This rate attempts to find the earnings rate, which equates the current value of the streams of earnings to the investment outlay. IRR is descri

limitations of using a periodic inventory system

Question: (a) Describe the Interest Rate Parity Theory. (b) A company needs to pay in 3 months USD 1 million. The USD are already at disposal in the company, thus the c

The Stock of Jeo Ltd performs relatively well compared to other stocks during recessionary periods. The stock of Avi Ltd, on the other hand, does well during growth periods. Both

Discuss the relationship between financial decision making and risk and return. Would all financial managers view risk-return tradeoffs similarly

The Donut Shop, Inc. is planning to add a 2nd Donut Shop by opening a new store across from Webster University. A survey of the area has already been completed at a cost of $150,00