RBI or the Reserve Bank of India announced that it would temporarily hold off any implementation for the usual waiting period of six months as it pertains to private placement rules. The usual gap required that was set six months was reduced to a three month waiting period for two private placements from a non-bank financial firm.
Due to the concerns raised based on the previous implementation, the Reserve Bank of India or the central bank will implement the previously agreed time frame "in due time."
The clarification from the central bank was set to alleviate any concerns from non banking financial firms (NBFC) as they rely heavily from the funding of capital markets.
ICICI Securities Primary Dealership Chief Executive, B. Prasanna commented, "This notification has come as a relief for NBFCs as they have been given a time period of 3 months to chalk out a resource-raising strategy and make representations to RBI if needed."
The Reserve Bank of India or the central bank commented that the previous notification will not be applicable to primary dealer.
Join the Conversation