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
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Opting our of sec 44AD
- Value of property in capital gain
- LC charges in relation to Asset purchased should be Capitalised ?
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Transporter Declaration form
- Regarding TDS Applicability For Director Remuneration
- Copyright software
- Multiple trade mark
- Negative ITC in Table 4(A)(5)
- Regarding appeal to GSTAT
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
