non convertible debenture
This query is : Resolved
21 May 2010
can a private co can issue non convertible debenture
24 May 2010
Yes it can.
The problem is the potential buyers of the paper- banks, insurance companies, etc all want listed papers. Thus the question should be can a private company get its NCD's listed?
I personally feel yes, there is nothing in law that prohibits it. NSE feels (at least felt some four years back when I had taken up a client's case) NO. BSE agreed in principle that private companies can get their NCDs listed but it is very choosy in giving that in-principle approval. Their logic is simple. Listing agreements call for certain periodic disclosure statements. Public companies are legally bound to make those disclosures. Private companies have no such legal binding. If after listing of the NCD the issuer does not make periodic disclosures to the exchange all that can be done is delist the paper.
The problem is the potential buyers of the paper- banks, insurance companies, etc all want listed papers. Thus the question should be can a private company get its NCD's listed?
I personally feel yes, there is nothing in law that prohibits it. NSE feels (at least felt some four years back when I had taken up a client's case) NO. BSE agreed in principle that private companies can get their NCDs listed but it is very choosy in giving that in-principle approval. Their logic is simple. Listing agreements call for certain periodic disclosure statements. Public companies are legally bound to make those disclosures. Private companies have no such legal binding. If after listing of the NCD the issuer does not make periodic disclosures to the exchange all that can be done is delist the paper.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Confusion around Form 26QB fields
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- BUYING PROPERTY COULD NOT FILE 26QB
- Gst input for FY 23-24
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
