Gold loan companies are planning to offer debentures to overcome the cash crunch they are faced with. Gold loan companies are non-banking finance companies (NBFCs). Following the recent RBI directive capping the minimum subscription for private placement of debentures to Rs25 lakh and above for a single investor, NBFCs have no choice but to tap the retail debt market. About 50%-80% of the resources that NBFCs need are met through private placement of secured non-convertible debentures (NCDs). NCDs from gold loan companies would be riskier than NCDs of manufacturing companies, given the volatile nature of the business.
Corporate bond yields have risen on cue from 10-year government bond benchmark yield. Yield from top rated corporate bonds, specially the AAA-rated, the safest bet of corporate bonds, has risen by a whopping 100bps since mid-June. These are attractive options for those seeking higher yield than bank deposits and yet want safety of their principal.
The Employees Provident Fund Organisation (EPFO) is likely to start its online provident fund transfer service on 15th August. Employees transfer provident fund when changing jobs. This move is expected to benefit over 13 lakh employees who apply for PF transfer each year. The retirement body has started registering digital signatures of employers. EPFO is expecting establishments which constitute 80% of the transfer claims from sectors like IT, to register their digital signature within a fortnight.