Regulatory requirements for debentures, Financial Management

Assignment Help:

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.


Related Discussions:- Regulatory requirements for debentures

NPV, 2.5. Västerås Corporation plans to buy a truck for $40,000 and depreci...

2.5. Västerås Corporation plans to buy a truck for $40,000 and depreciate it fully over 5 years using straight-line method of depreciation. However, it plans to use it for 8 years

Stock market indicators, Stock Market indicators: Stock indices can be ...

Stock Market indicators: Stock indices can be organized by weighting the sample of stocks. The stock indicators can be of four types: price-weighted average, volume-weighted av

Explain some examples under fasb 52, Explain some Examples under FASB 52 th...

Explain some Examples under FASB 52 that a foreign entity's functional currency would be similar as the parent firm's currency. Answer:  Three instances under FASB 52, in which

Define variants of basic interest rate and currency swaps, Briefly discuss ...

Briefly discuss some variants of the basic interest rate and currency swaps. Answer:  In place of the basic fixed-for-floating interest rate swap, there are as well zero-coupo

Income statement, Income Statement A formal statement of the parts...

Income Statement A formal statement of the parts used in determining an organization net income that is called profit and loss statement. The several categories reported

Global bonds, These are bonds which are offered within the euro marke...

These are bonds which are offered within the euro market and several other markets simultaneously. Unlike Eurobonds, global bonds can be issued in the same curren

hazard or risk , For this assessment, you are required to choose one workp...

For this assessment, you are required to choose one workplace hazard or risk to safety in the financial services industry that interests you. Prepare a report on the area you have

Role of market efficiency, Role of market efficiency: Market efficiency...

Role of market efficiency: Market efficiency signifies how ‘quickly and accurately' does relevant information have its effect on the asset prices. Depending upon the degree of

How do financial managers decide which proposed capital, For a given IOS an...

For a given IOS and MCC, how do financial managers decide which proposed capital budgeting projects to accept, and which to reject? For a given MCC and IOS, all independent pro

Enumerate the internal development of any business, Enumerate the Internal ...

Enumerate the Internal development of any business or 'organic growth' Business grows using its own internal resources. - Reduces risk of the high cost of integrating cultur

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd