Sops for FPI investment in defaulted bonds to boost liquidity
February 05, 2021
Market experts also attribute the spike in FPI inflows to the recent spate of fundraising by Indian corporates
Market experts also attribute the spike in FPI inflows to the recent spate of fundraising by Indian corporates×
In order to further boost foreign portfolio investments in the corporate bond segment, the RBI has proposed to exempt FPI investment in defaulted corporate bonds from the short-term limit and the minimum residual maturity requirement under the Medium Term Framework. Detailed guidelines are being issued separately, said the RBI. At present, foreign portfolio investors can invest in security receipts and debt instruments issued by Asset Reconstruction Companies and debt instruments issued by an entity under the Corporate Insolvency Resolution Process, as per the resolution plan approved by the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016, and these
January 15, 2021
× In another significant relief for India Inc in the current pandemic times, the Ministry of Corporate Affairs (MCA) has allowed companies to hold their Annual General Meetings (AGMs) scheduled for 2021 through video conferencing (VC) or other audio-visual means (OAVM) till December-end.
This dispensation will also be available for AGMs that were due to be held in 2020 and where companies had obtained individual extension from the Registrar of Companies (RoC).
Last August, the MCA had granted more time to companies that had not been able to hold their AGMs for FY20. This was allowed so long as they filed a separate application for this purpose before the concerned RoC. Most RoCs had allowed extension till December 31, 2020.