Securities and Exchange Board of India (Sebi), the capital market regulator, has eased norms for security, or the asset cover, required for issuing secured bonds. The move will benefit housing finance companies, which usually issue partly secured debt securities faced problems in raising funds, as companies usually sold debentures with an underlying security that was only worth a fraction of the amount raised.

Earlier in May, Sebi had decided that companies raising money through ‘secured’ bonds and debentures should ensure that the papers issued are fully backed by assets on which a charge has been created up to 100 per cent.

Unitech to raise $700 million through FCCB issue

Unitech, country’s second-largest real-estate company is planning to raise $700 million through foreign currency convertible bonds (FCCBs). The company has sought approval from the Department of Industrial Policy and Planning (DIPP) and the Reserve Bank of India to raise the fund through convertible instruments.

The FCCBs are raised from foreign institutional investors and banks and companies have the option to either redeem the bonds after the maturity period or convert them into equity at a pre-determined price.

The company has assured the government that the fund will be used for an integrated township and not for repaying existing debts. The company will ring fence the fund raised through this route for a dedicated project (integrated township) through an escrow account.

Surya Roshni to venture in realty sector

Surya Roshni, one of the leading light and steel solution providers, has planned to venture into the real estate sector.

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