What are the provisions regarding creation and adequacy of debenture redemption reserve (DRR) in each of the following cases: (ii) Non-banking financial institutions registered with the Reserve Bank of India.

CS Executive · Company Accounts & Auditing Practices · PYQS · June 2016
What are the provisions regarding creation and adequacy of debenture redemption reserve (DRR) in each of the following cases: (ii) Non-banking financial institutions registered with the Reserve Bank of India.

Answer & Explanation:

NBFCs registered with the RBI the adequacy of DRR will be 25% of the value of debentures issued through public issue. No DRR is required in the case of privately placed debentures.

Topics: Company Accounts

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