Par­tial credit en­hance­ment for NBFCs

India Business Journal - - FINANCE -

The RBI has al­lowed banks to pro­vide par­tial credit en­hance­ment (PCE) to bonds is­sued by sys­tem­i­cally im­por­tant non­de­posit tak­ing non-bank­ing fi­nan­cial com­pa­nies (NBFCs) reg­is­tered with the RBI and hous­ing fi­nance com­pa­nies (HFCs) reg­is­tered with the Na­tional Hous­ing Bank. The move is aimed at en­hanc­ing credit rat­ing of bonds and en­abling these NBFCs to ac­cess funds from the bond mar­ket on bet­ter terms. PCE, which was in­tro­duced in 2015, is ex­pected to help NBFCs and HFCs raise money from in­sur­ance and prov­i­dent or pen­sion funds which in­vest only in high­lyrated in­stru­ments.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.