General Circular No.  4/2003

No. 6/3/2001-CL V

Government of India

Ministry of finance and Company Affairs

Department of Company Affairs

 

5^h Floor, A Wing, Shastri Bhavan

Dr. Rajendra Prasad Road,

New Delhi-110001.

 

Dated     16.1.2003

 

To

 

            All Regional Directors

            All Registrars of Companies

            All Chambers of Commerce

            Reserve Bank of India

            Securities and Exchange Board of India

 

Subject: Debenture Redemption Reserve (DRR)- Clarification

 

Sir,

 

            In continuation to this Department’s General Circular No. 9/2002 dated 18.4.2002, it is clarified that for Housing Finance Companies registered with the National Housing Bank under Housing Finance Companies  (NHB) Directions, 2001, “the adequacy” of Debenture Redemption Reserve (DRR) will be 50% of the value of debentures issued through public issues and no DRR is required in the case of privately placed debentures.

 

 

                                                                                                Yours faithfully,

 

 

                                                                                    (N.K. Vig)

                                                                        Under Secretary to the Govt. of India

(Tel: 23387174)