The Reserve Bank of India has warned non-banking financial companies against raising funds via private placement of bonds for less than 90 days maturity. "This is in clear violation of Issuance of Non-Convertible Debentures (Reserve Bank) Directions, 2010, dated June 23, 2010, issued by Internal Debt Management Department," it said in a circular to NBFCs posted on its website on Friday.
NBFCs have been asked to issue non-convertible debentures for an initial maturity of up to one year.