NBFCs, HFCs, listed firms no longer need debenture reserve to raise funds

On the other hand, banking companies and all India financial institutions are already exempted from creating DRRs

The ministry of corporate affairs (MCA) has removed the requirement for debenture redemption reserves (DDRs) for listed companies, housing finance companies(HFCs) and non-banking financial companies(NBFCs) to reduce the cost of capital, a demand which was on the wish lists of India Inc. to the government. The move is also aimed at deepening the bond market. 

 At present, these companies have to set up a reserve to the tune of 25 per cent of the value of their outstanding debentures for the protection of investors in case of default. 

The MCA also brought down the requirement of such reserves for unlisted companies to