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These debentures would be converted into equity of RFL to the extent of 40 per cent at the end of 13 months and balance at the end of 25 months at a price to be fixed per Controller of Capital Issues (CCI) guidelines.
These debentures will form part of the Tier II capital of the company and will strengthen the capital adequacy ratio of RFL, Religare said in a release. RFL is registered with the Reserve Bank of India as a Non-Banking Finance Company (NBFC) and is a member of the Central Depository Services Limited (CDSL). Religare Finvest is presently engaged in capital market lending, consumer finance and third party distribution through its personal financial services channel. Religare Finvest has recently undertaken an initiative to launch its Religare Finmart branded chain of financial services stores across the country to service the growing need of third party distribution and consumer finance business. ICRA has assigned a rating of A1+ for the short term debt issuance programme of RFL for Rs 18,500 million in January 2008. |
Source: Business Standard