Infra finance companies can raise long-term funds

New Delhi, June 19 (IANS) The government has permitted infrastructure finance companies to issue secured debentures with a tenure of up to 30 years.

India is estimated to require investment of about $1 trillion in infrastructure during 2012-17. The decision will facilitate flow of long-term funds for the infrastructure sector.

Also, infrastructure debt fund non-banking financial companies (ID-NBFCs) have been allowed to issue secured debentures for up to 30 years.

"Similarly, housing finance companies have been allowed relaxed terms for maintaining debenture redemption reserve on lines similar to NBFCs registered with RBI (Reserve Bank of India). Necessary amendments in rules have been notified," the Corporate Affairs Ministry said in a statement Thursday.

The ministry also said that companies can appoint an independent merchant banker with a minimum experience of 10 years and registered with the market regulator to prepare valuation reports required before making a preferential allotment of shares.