What changed
RBI circular dated July 28, 2010 (FMD.MSRG.49/02.13.016/2010-2011) requires debenture trustees to report NCD details as per the 'Issuance of Non-Convertible Debentures (Reserve Bank) Directions, 2010' issued on June 23, 2010. Reporting timelines: issuance within 3 days, defaults immediately, and outstanding amounts quarterly within 5 working days after quarter-end.
What it means for you
Debenture trustees must now adhere to strict reporting schedules for NCDs with maturity up to one year. This enhances RBI's oversight of short-term debt markets, ensuring timely data on issuance, outstanding positions, and defaults. Banks and lenders acting as trustees need to update their compliance processes to meet these deadlines.
What you must do
- Submit NCD issuance details within 3 days of issue completion using Annex 1 format.
- Report any default in NCD repayment immediately using Annex 3 format.
- File quarterly outstanding NCD amounts within 5 working days after quarter-end using Annex 2 format.
- Send reports in both hard and soft copies to RBI's Financial Markets Department, Central Office, Mumbai.
Who it affects
Debenture trustees, Banks and financial institutions acting as trustees, Issuers of non-convertible debentures with maturity up to one year
What is the deadline for reporting NCD issuance?
Issuance details must be reported within three days from the date of completion of the issue.
How often do I need to report outstanding NCD amounts?
Outstanding amounts must be reported on a quarterly basis, within five working days from the end of the calendar quarter.
What happens if there is a default in repayment?
Defaults must be reported immediately to the RBI's Financial Markets Department.