As NBFCs are to be accepting only wholesale funds, the Bank took action to prevent retail participation by stipulating the minimum subscription amounts, the maximum number of subscribers per issue, and preventing NBFCs from lending against the security of their own debentures. This while curbing the undesirable practices, has constrained the resource raising ability of NBFCs.
With the revisions in the Companies Act on private placements, the Bank is in the process of aligning largely the Bank’s debenture regulations with that of the Companies Act 2013. Challenges for the regulator 35. The challenges faced by the regulator are many.