Debenture Redemption Reserve (DRR) Clarification.

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..... mmerce The Reserve Bank of India The Securitles and Exchange Board of India Subject: Debenture Redemption Reserve (DRR) Clarification. Sir, The requirements with regard to 'adequacy' of debenture redemption reserve (DRR) have been clarified by this Ministry vide General Circular No. 9/2002 dated 18/04/2002 . 2. The matter with regard to need for review of limits indicated in such C .....

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..... of debentures issued through public issue as per present SEBI (Issue and Listing of Debt Securities) Regulations, 2008, and no DRR is required in the case of privately placed debentures. (iii) For other companies including manufacturing and infrastructure companies, the adequacy of DRR will be 25% of the value of debentures issued through public issue as per present SEBI (Issue and Listing of D .....

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..... uses (a) to (d) and (ee) of section 20 of the Indian Trusts Act, 1882 ; (d) in unencumbered bonds issued by any other company which is notified under clause (f) of section 20 of the Indian Trusts Act, 1882 ; (v) The amount deposited or invested, as the case may be, above shall not be utilized for any purpose other than for the repayment of debentures maturing during the year referred to a .....

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