Debenture Redemption Reserve (DRR)- Clarification - Companies Law - 04/2003

General Circular No. 04/2003 No. 6/3/2001-CL V Government of India Ministry of finance and Company Affairs Department of Company Affairs 5h Floor, A Wing, Shastri Bhavan Dr. Rajendra Prasad Road, New Delhi-110001. Dated 16.1.2003 To All Regional Directors All Registrars of Companies All Chambers of Commerce Reserve Bank of India Securities and Exchange Board of India Subject: Debenture Redemption Reserve (DRR)- Clarification Sir, In continuation to this Department's General Circular No. 9/2002 dated 18.4.2002, it is clarified that for Housing Finance Companies registered with the National Housing Bank under Housing Finance Companies (NHB) Directions, 2001, "the adequacy" of Debenture Redemption Reserve (DRR) will be 50% of the value of debentures issued through public issues and no DRR is required in the case of privately placed debentures. Yours faithfully, (N.K. Vig) Under Secretary to the Govt. of India (Tel: 23387174)