We are aware that the MCA has on 6th November, 2015 notified the Companies (Share Capital and Debentures) Third Amendment Rules, 2015. The text of the said Rules may be viewed and downloaded using the following link
http://www.mca.gov.in/Ministry/pdf/Amendement_Rules_06112015.pdf
The aforesaid amendment rules has amended Rule 18 of the Companies (Share Capital and Debentures) Rules, 2014
The impact of the aforesaid amendment rules is as follows:
Rule 18 lays down certain conditions which a company needs to comply with while issuing secured debentures. One of the condition is that the issue of secured debentures has to be redeemed on or before 10 years from the date of its issue but for certain class of companies the period before which the redemption is to be made can exceed 10 years but shall not exceed 30 years.
The aforesaid amendment rules now includes the following category of companies within the aforesaid class of companies
Companies permitted by a Ministry or Department of the Central Government or by Reserve Bank of India or by the National Housing Bank or by any other statutory authority to issue debentures for a period exceeding ten years.
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