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
Value of a Warrant: The market price of a warrant fluctuates between minimum and maximum limits. When the current market price of the stock Ps is greater than the exercise pri

Techiniques of capm Effects of capm

Aligning Financial Reports: The primary purposes of financial systems are to provide information to interested parties.  Any reports produced through the financial management p

It is the third-largest stock exchange by trading size in the United States. In 2008 it was get hold by the NYSE Euronext and turn into the NYSE Amex Equities in 2009. The AMEX is

FINANCIAL ISSUES OF DIVESTITURES Many corporations review the business portfolio to determine the operations that fit their core strategies. The firm's desire to achieve more f

Government securities are the most important and unique financial instruments in the financial markets of any economy. Government of India Securities (GOI Sec) in

ESSENTIAL FEATURES OF A SOUND CAPITAL MIX A sound or an appropriate Capital structure should have the following essential features : highest possible use of leverage

Which formula would you use to solve for the payment needed for a car loan if you know the interest rate, length of the loan, and the borrowed amount?  Describe. To solve for k

After determining the expected cash flows and appropriate interest rate, the last step in the valuation process is to find the total PV of all cash flows. The PV

Cash vs. Accrual Accounting: While it is beyond the scope of this module to assess accounting systems against all types of accounting styles, it is important that managers unde