Railways introduce 73 new trains

Kharge has introduced 73 new trains, which includes 17 Premium trains, 39 Express trains, 10 Passenger trains, 4 MEMU and 3 DEMU in this year’s Interim Railway Budget.


Railway minister Mallikarjun Kharge on Wednesday introduced 73 new trains, which includes 17 Premium trains, 39 Express trains, 10 Passenger trains, 4 MEMU and 3 DEMU in this year’s Interim Railway Budget. Three trains will be extended and frequency of same number of trains will be increased.


Premium Trains:

  1. Howrah – Pune AC Express (Bi-weekly) via Nagpur, Manmad
  2. Kamakhya – New Delhi AC Express (Weekly) via Chhapra, Varanasi
  3. Kamakhya – Chennai AC Express (Weekly) via Malda, Howrah
  4. Mumbai – Howrah AC Express (Bi-weekly) via Nagpur, Raipur
  5. Mumbai – Patna AC Express (Bi-weekly) via Khandwa, Itarsi, Manikpur
  6. Nizamuddin – Madgaon AC Express (Bi-weekly) via Kota, Vasai Road
  7. Sealdah –Jodhpur AC Express (Bi-weekly) via Mughalsarai
  8. Yesvantpur - Jaipur AC Express (Weekly) via Gulbarga, Pune, Vasai Road
  9. Ahmedabad – Delhi Sarai Rohilla Express (Tri-weekly) via Palanpur, Ajmer, Rewari
  10. Bandra – Amritsar Express (Weekly) Via Kota, New Delhi, Ambala
  11. Bandra (T) – Katra Express (Weekly) via Kota, New Delhi, Ambala
  12. Gorakhpur – New Delhi Express (Bi-weekly) via Lucknow, Moradabad
  13. Katra – Howrah Express (Weekly) Express via Mughalsarai, Varanasi, Saharanpur
  14. Mumbai – Gorakhpur Express (Bi-weekly) via Khandwa, Jhansi, Kanpur
  15. Patna– Bangalore Express (Weekly) via Mughalsarai, Chheoki, Manikpur, Nagpur
  16. Yesvantpur – Katra Express (Weekly) via Gulbarga, Kacheguda, Nagpur, New Delhi
  17. Thiruvananthpuram – Bangalore (Yesvantpur) Express (Bi- weekly) via Erode, Tirupattur

Express Trains:

  1. Ahmedabad – Katra Express (Weekly) via Palanpur, Jaipur, Rewari, Hisar, Bathinda, Amritsar
  2. Ahmedabad – Lucknow Jn Express (Weekly) via Palanpur, Jaipur, Bandikui, Mathura, Kasganj
  3. Ahmedabad – Allahabad Express (Weekly) via Jalgaon, Khandwa, Itarsi, Satna, Manikpur
  4. Amritsar – Gorakhpur Express (Weekly) via Saharanpur, Moradabad, Sitapur Cantt.
  5. Aurangabad – Renigunta Express (Weekly) via Parbhani, Bidar, Vikarabad
  6. Bangalore – Chennai Express (Daily) via Bangarpet, Jolarpettai
  7. Bandra (T) – Lucknow Jn Express (Weekly) via Kota, Mathura, Kasganj
  8. Bareilly – Bhopal Express (Weekly) via Chandausi, Aligarh, Tundla, Agra
  9. Bhavnagar – Bandra Express (Weekly) via Ahmedabad
  10. Bhavnagar- Delhi Sarai Rohilla Link Express (Weekly)
  11. Gandhidham – Puri Express (Weekly)
  12. Gorakhpur – Pune Express (Weekly) via Lucknow, Kanpur, Bina, Manmad
  13. Guntur-Kacheguda Double Decker Express (Bi-weekly);
  14. Howrah – Yeswantpur AC Express (Weekly)via Bhubaneswar, Gudur, Katpadi
  15. Hubli – Mumbai Express (weekly) via Bijapur, Sholapur
  16. Hyderabad – Gulbarga Intercity (Daily)
  17. Jaipur – Chandigarh Intercity (Daily) via Jhajjar;
  18. Kacheguda – Tirupati Double Decker Express (Bi Weekly);
  19. Kota – Jammu Tawi Express (Weekly) via New Delhi, Ambala
  20. Kanpur – Bandra (T) Express (Weekly) via Kasganj, Mathura, Kota
  21. Lucknow – Kathgodam Express (Tri-weekly)
  22. Manduadih – Jabalpur Express (Weekly) via Allahabad, Manikpur, Satna
  23. Malda Town – Anand Vihar Express (Weekly) via Amethi & Rae Bareli;
  24. Mannargudi – Jodhpur Express (Weekly) via, Jaipur
  25. Mumbai – Chennai Express (Weekly) via Pune, Gulbarga, Wadi
  26. Mumbai – Gorakhpur Express (Weekly) via Gonda, Balrampur, Barhani (after gauge conversion);
  27. Mumbai – Karmali AC Express (Weekly) via Roha
  28. Nanded – Aurangabad Express (Weekly) via Purna, Parbhani
  29. Nagpur – Rewa Express (Weekly) via Satna
  30. Nagercoil – Kacheguda Express (Weekly) via Karur, Namakkal, Salem
  31. Pune – Lucknow Express (Weekly) via Khandwa, Bhopal, Bina, Jhansi, Kanpur
  32. Ramnagar – Chandigarh Express (Weekly) via Moradabad, Saharanpur
  33. Ranchi – New Jalpaiguri Express (Weekly) via Jhajha, Katihar
  34. Secunderabad – Visakhapatnam AC Express (Weekly) via Kazipeth, Vijaywada
  35. Santragachi – Anandvihar Express (Weekly)
  36. Srigangnagar – Jammu Tawi Express (Weekly) via Abohar, Bathinda, Dhuri
  37. Thiruvananathapuram-Nizamuddin Express (Bi-weekly) one day via Kottayam and one day via Allepey
  38. Varanasi – Mysore Express (Bi-weekly) via Wadi, Daund
  39. Balurghat – Howrah (Bi-Weekly)

Passenger trains:

  1. Bina – Katni Passenger (Daily)
  2. Dekargaon – Naharlagun Passenger (Daily) after completion of new line
  3. Gunupur - Visakhapatnam Passenger (Daily)   
  4. Hubli - Belgaum Fast Passenger (Daily)
  5. Jaipur – Phulera Passenger (Daily)
  6. Mannargudi – Mayiladuthurai Passenger (Daily)
  7. Punalur – Kanniyakumari Passenger (Daily) via Kollam, Thiruvananthapuram
  8. Sambalpur – Bhawanipatna Passenger (Daily)
  9. Tatanagar – Chakulia Passenger (Daily)
  10. Tiruchendur – Tirunelveli Passenger (Daily)

MEMU Trains:

  1. Anand – Dakor (Daily 2 services)
  2. Anuppur-Ambikapur (6 days a week)
  3. Delhi – Rohtak Passenger (Daily 2 services)
  4. Santragachi – Jhargram (5 days a week)

DEMU Trains:

  1. Morbi – Maliya Miyana
  2. Ratlam – Fatehabad Chandrawati Ganj (Daily) after gauge conversion
  3. Rewari – Rohtak (Daily)

Extension of Trains

  1. 14705/14706 Delhi Sarai Rohilla – Sujangarh Express to Jodhpur
  2. 15281/15282 Patna – Saharsa Express to Murliganj
  3. 15013 / 15014 Kathgodam – Bhagat Ki Kothi Ranikhet Express to Jaisalmer

Increase in Frequency:

  1. 16571/16572 Bidar – Yesvantpur Express 3 days to daily
  2. 17225/17226 Hubli – Vijayawada Express from 3 days to daily
  3. 17319/17320 Hubli – Secunderabad Express from 3 days to daily


Is our political class trapped by economic hit men from database empires? -Part 27

Wittingly or unwittingly, most political parties and media houses appear to be guilty of propagating self-serving and contrived nonsense about 'inherently fallible' biometric identification (Aadhaar) based initiatives of US Department of Defense, NATO, World Bank Group and other international financial institutions

One must accept a continuing divergence between approved and conditioned belief and the reality. In the end, it is the reality that counts.

-John Kenneth Galbraith in "The Economics of Innocent Fraud"  

"The story of the march to global empire did indeed appear to be leaking out. Not the details, not the fact that it was a tragic story of debt, deception, enslavement, exploitation and the most blatant grab in history for the hearts, minds, souls, and resources of people around the world.

-John Perkins, in his book "Confessions of an Economic Hit Man: The shocking inside story of how America REALLY took over the world"        
COBB: No idea's simple when you have to plant it in someone else's mind.
SAITO: My main competitor is an old man in poor health. His son will soon inherit control of the corporation. I need him to decide to break up his father's empire. Against his own self-interest.

COBB: This isn't the usual corporate espionage, Mr. Saito. This is inception. The seed of the idea we plant will grow in this man's mind.
It'll change him. It might even come to define him.

-From INCEPTION, a movie by Christopher Nolan

Aren't most supporters of Nandan Nilekani, the former chief executive of Infosys, C Chandramouli, Sam Pitroda and Capt Raghu Raman guilty of "innocent fraud"? Haven't they been manipulated by a brigade of economic hit man (EHM) which is on the prowl? In the contested terrain of jurisdiction, execution of purportedly innocent legal action that tantamount to fraud but claim of being lawful, are deemed innocent fraud. In the name of delivery of public good and services, Indians are witnessing the same being practiced amidst legal challenge by the Parliamentary Standing Committee on Finance, West Bengal Assembly, and High Courts and in the Supreme Court. Perhaps, one cannot put Nilekani's Boss, Montek Singh Ahluwalia in this category.

As to the machinations of EHMs, whose job is to encourage world leaders to become part of a vast network that promotes US commercial interest, who are ensnared in a web of debt that ensures their loyalty in furtherance of its political, economic and military needs? The political position of these leaders is bolstered through industrial parks, power plants and airports to their people although workers therein are mere wage slaves. As a consequence, "The owners of US engineering/ construction companies become fabulously wealthy." This is revealed by John Perkins, in his book Confessions of an Economic Hit Man: The shocking inside story of how America REALLY took over the world.       
One gets an indication of how the seed of the idea about identification and transformation being propagated by World Bank Group may have been planted in the minds of Rahul Gandhi and the then Finance Minister, Pranab Mukherjee by ID cartels, in "Decoding Rahul Gandhi", a book by Aarthi Ramachandran. The book reveals how GK Jayaram's Bangalore based Institute of Leadership and Institutional Development (ILID) was a consultant to Rajiv Gandhi Foundation and Rajiv Gandhi Institute of Contemporary Studies adopted VISTAR or 'transformation' and the same was used by Rahul for his failed attempt to train Indian Youth Congress (IYC) and National Students' Union of India (NSUI). Jayaram who has taught at the US Navy Post-Graduate School and worked in US firms like AT&T, Arthur D Little (ADL), Coopers & Lybrand had also set up Infosys Leadership Institute (ILI). ILID set up Jawaharlal Nehru Leadership Institute (JNLI) in 2008 for training NSUI with Jayaram as its chief mentor.

Notably, in 2006, the Electronic Frontier Foundation lodged a class action lawsuit alleging that AT&T had allowed agents of the National Security Agency (NSA) to monitor phone and Internet communications of AT&T customers without warrants in violation of the Foreign Intelligence Surveillance Act of 1978 and the First and Fourth Amendments of the US Constitution. AT&T had rewritten rules on their privacy policy that took effect from 23 June 2006 that states, "AT&T - not customers - owns customers' confidential info and can use it 'to protect its legitimate business interests, safeguard others, or respond to legal process." This was reported by the San Francisco Chronicle on 21 June 2006.

Associated Press reported on 22 August 2007 that US National Intelligence Director, Mike McConnell confirmed that AT&T was one of the telecommunications companies that assisted with the government's warrantless wire-tapping program on calls between foreign and domestic sources. Mark Klein, a former AT&T technician told Keith Olbermann, MSNBC on 8 November 2007 that all internet traffic passing over AT&T lines was copied into a locked room at the company's San Francisco office - to which only employees with NSA clearance had access. Associated Press also reported that AT&T keeps for five to seven years-record of 'who text messages whom' and the date and time, but not the content of the messages on 29 September 2011.

As to ADL, it is notorious for having claimed that sabotage was the cause of the Bhopal disaster as it was paid by Union Carbide Corp.  As to Coopers & Lybrand, it merged with Price Waterhouse. As to Bell Laboratories, it is the research and development (R&D) subsidiary of Alcatel-Lucent in Berkeley Heights at New Jersey that handles sensitive US contracts in the communication technology field. It was previously a division of the American Telephone & Telegraph Company (AT&T Corp).

Subsequently, a web-based Pehchaan (identity) platform was set up "as a mechanism to identify and promote elected office-bearers (EOBs) at every level."  The text of the resolution in this regard reads, "Every EOB is allotted a unique ID and password and given the opportunity to share their work and connect with the organization at various levels." Not only that the "IYC tied up with Google to provide it with a communications platform using cloud computing technology. The IYC's applications on Pehchaan such email, chat and others apps were provided by Google."

Its newsletter dated July 2011, disclosed that it planned to move 28, 000 of its EOBs and volunteers on to Google platform to help them "carry out various development programmes at grassroots level all across India."

Rahul also unsuccessfully attempted to appoint Aam Aadmi Ka Sipahi (AAKS) for two years tenure of enablers from the Congress party to work at the panchayat/ ward level through Ashok Tanwar, his protégé and President of IYC.  

When Arnab Goswami of Times Now asked Rahul in his first long interview in 10 years, to respond to what Narendra Modi tells voters about Congress having been given 60 years but he seeks only 60 months for BJP, Rahul responded, "We are talking about Aadhaar which is going to give money directly to the people," which is limited to only 60 crore Indian residents. In his speech at the conference of All India Congress Committee, Rahul boasted that he has given right to identity through Aadhaar, which is directly being implemented by Planning Commission's Unique Identification Authority of India (UIDAI) and indirectly through National Population Register (NPR) of Ministry of Home Affairs (MHA).

Aarthi Ramachandran, his decoder underlines, "Rahul's approach to change through his backing of for measures such as the UIDAI scheme reveals an unwillingness to engage with the existing system. It is an attempt to superimpose new systems over existing structures. This approach is bound to meet the fate of his experiments in the IYC and the NSUI…"

She observes, "Also in the name of better targeting of the poor for state sponsored schemes, the UID programme pays little attention to privacy issues" and notes that Parliamentary Standing Committee on Finance "was scathing in its rejection of the scheme…"

Rahul Gandhi's interview with Times Now has revealed what was blanked out from electronic media by Congress party when students at Jawaharlal Nehru University (JNU) had quizzed him on the evening of 29 September 2009. Rahul is consistently evasive in his replies. He refuses to engage with not only the existing system but also with tough questions. Had his interaction with the students been broadcast, it would have revealed his political and social understanding in a deeper way than his non-replies to Times Now did. One student had commented in his face, "Rahul bhai, you are a real rajneta. You are speaking so much but answering nothing", once again the recent TV interview has vindicated the opinion of JNU students about him. In answer to series of difficult questions, he said, tough questions posed to him in the university campus do not change existing structures outside the campus. UID scheme is all set to undermine all the existing institutional safeguards because Rahul has been a colossal failure in responding to tough political questions.         
Why is Rahul maintaining silence about the emergency architecture based on Centralized ID Repository (CIDR) of Aadhaar number, NPR number and National Intelligence Grid (NATGRID), whose database is stored on cloud akin to what has been decided for the EOBs of IYC and Congress through Google's cloud computing, which is in agreement with IBM since 2007?    

Meanwhile, it must be noted that Indian National Congress is a party, which gets 90.38% of its funds in cash between 2008 and 2012. Almost 89.11% of its money comes from unaccounted sources and unnamed sourced. Aren't Google and IBM funding Congress?

It seems understandable for the Congressmen in provinces to become servile and subject themselves to biometric identification like obedient boys. But it is inexplicable as to why when the Pehchaan (identity) platform of the Congress was extended the whole country, even likes of Modi volunteered to be profiled? Are visible and invisible corporate donors dictating these actions or is some EHMs who have made inroads in BJP too are calling the shots.

Or is it because of Narendra Modi's closeness to Japan (which is under the security umbrella of US since its defeat in World War II), which hosted him in 2007 after the US revoked his visa in 2005 under a domestic law for "severe violations of religious freedom" under a US law? Tycoons in Japan are also close to Nilekani who as the CEO of Infosys Technologies was one of the Co-Chairs at the World Economic Forum (WEF) on East Asia in Tokyo in June 2006 that focused on 'Creating a New Agenda for Asian Integration.'
Infosys has been a part of the WEF since 1997.  Coincidentally, the theme of Asian integration fits quite well with World Bank's convergence initiative that was formally launched in April 2010.        

A poem titled "UID" by Dr SP Udayakumar aptly captures the emerging situation and urges action:-

U are no longer U,
I am no longer I,
We are all 12 number Digits
It's their UID.
U carried anything?
I never held nothin.
Now U and I keep something,
It's their UID.
U aren't Kashmiri Muslim,
I am no Kanyakumari Tamil,
U and I are numbers
It's our new ID.
RAW can track U and I
IB, CBI can keep an eye,
So can Q-Branch and CID
That's why we have UID.
Where I go, when I come,
Who U see, what U chomp,
PMO can find and U can't hide,
That's what does the UID.
Grandpa's name and color of eye,
Dates and prints and scanned iris,
All other data have U and I
Hi-tech plastic will keep it by.
U and I were roaming free
No longer will they allow that spree,
Rich men inside and rich men out
Want to keep us under their clout.
Poor we were, but free I say
Alas, now we're sold to USA,
Indeed the UID is our new ID
And UID is nothing but USAID.
The Great Dictator of Modern Times
Protects, provides and makes high claims,
As long as carry the card U and I
And never say nay or ask even why.
Think your thoughts and speak your mind?
Stand up high with friends behind,
Demand your rights and cry and coo?
He'd find your number and burst U too.
Wake up U, I wake up thee,
Shirk your sleep and apathy.
U and I should make a deed
Lest we lose our Hind ID!

Meanwhile, arguments against legally questionable biometric Aadhaar are underway in the Supreme Court.    

But when Raj Chengappa, editor-in-chief of The Tribune Group of Newspapers asked Arvind Kejriwal, leader of Aam Aadmi Party (AAP) on 9 February 2014 as to what is his view of the Aadhaar card scheme? Kejriwal replied, "It is not a bad idea to give people some sort of identification. However, there are certain objections, which need to be addressed." It is the 5th year of the 12 digit Unique Identification (UID) Number branded as Aadhaar but neither Chengappa nor Kejriwal realize that Aadhaar is not an identification card but a biometric identifier number that verifies citizens as subjects. Shouldn't Kejriwal as Delhi chief minister issue orders asking officials to remove Aadhaar from the list of identity proofs now that he has conceded that "there are certain objections" against the Aadhaar scheme that have remained unaddressed? This author witnessed it being considered as one of the identity proofs at Delhi Secretariat-AAP does seem to realize that it is one of the pernicious residual legacies of Congress Government that merit immediate attention and action.    
"Out of the pecuniary and political pressures and fashions of the time, economics and larger economic and political system cultivate their own version of truth. This last has no necessary relation to reality...what is convenient to believe is greatly preferred…It is what serves, or is not adverse to, influential economic, political and social interest," wrote John Kenneth Galbraith in his book The Economics of Innocent Fraud. Be it AAP, UPA, NDA, Federal Front, TMC or MNS, evidently "what is convenient to believe is greatly preferred" in the face of marketing blitzkrieg by vendors of identification technologies.

Wittingly or unwittingly most political parties and media houses appear to be guilty of propagating "self-serving and contrived nonsense" about "inherently fallible" biometric identification based initiatives of US Department of Defense, North Atlantic Treaty Organisation (NATO), World Bank Group and other international financial institutions by reporting unquestionably and approvingly.       
You may also want to read…

Why biometric identification of citizens must be resisted? Part I

Biometric identification is modern day enslavement -Part II

Biometric profiling, including DNA, is dehumanising -Part III

Marketing and advertising blitzkrieg of biometric techies and supporters -Part IV

History of technologies reveals it is their owners who are true beneficiaries -Part V

UID's promise of service delivery to poor hides IT, biometrics industry profits –Part VI

Technologies and technology companies are beyond regulation? -Part VII

Surveillance through biometrics-based Aadhaar –Part VIII

Narendra Modi biometrically profiled. What about Congress leaders?-Part IX

Aadhaar: Why opposition ruled states are playing partner for biometric UID? -Part X


Is Nandan Nilekani acting as an agent of non-state actors? –Part XI


Aadhaar and UPA govt's obsession for private sector benefits–Part XII

CIA-funded MongoDB partners with UIDAI to handle Aadhaar data –Part XIII


Are Indians being used as guinea pigs of biometric technology companies? -Part XIV

Aadhaar: Is the biometric data of human body immortal and ageless? Part XV

Aadhaar: The propaganda of transnational vested interests –Part XVI


Aadhaar: Pakistan handed over, India giving database on a platter– Part XVII

Engineered row in US-India relations, an attention diversion tactics of big brothers?—Part XVIII


Aadhaar: UIDAI and the ‘fifth column’ of Napoleon—Part XIX

Aadhaar: Turning citizens into subjects through social control technology companies –PartXX


Why Kejriwal govt in Delhi should abandon biometric Aadhaar?—Part XXI


Aadhaar for LPG: Oil companies, Ministry of Petroleum & UIDAI disobeying Supreme Court order–Part XXII


Why Vasundhara Raje should immediately withdraw circulars making Aadhaar mandatory -Part XXIII


How Congress has been proven wrong on biometric Aadhaar and NPR -Part XXIV


Aadhaar, NPR, UN resolution and deafening silence of political parties –Part XXV

Is Congress converging UID numbers of EVMs and Indian voters? –Part XXVI

(Gopal Krishna is member of Citizens Forum for Civil Liberties (CFCL), which is campaigning against surveillance technologies since 2010)




NBFCs’ issuance of secured NCDs in trouble as Companies Act, 2013 and draft rules’ whammy

The only options left with NBFCs are issuance of compulsorily convertible debentures with no tenure limit on the conversion or contingently convertible debentures or a third instrument that the market may innovate

The Companies Act, 2013 is turning out to be opening a pandora box for non-banking finance companies (NBFCs). So long the NBFCs were struggling to ensure that the debenture issuances did not trespass into the domain of public deposits and were beginning to understand that optionally convertible debentures market will die out slowly that the draft rules have thrown language open to interpretation.

The reading of the Section 71 of the Companies Act, 2013 read with the draft rules indicates that the debenture issuances have to be secured by specific moveable and immoveable properties. NBFCs may have a hard time in finding these specific moveable and immoveable properties for secured debenture issuances. To throw some light on the issue, it is pertinent to read the text of the section and the extract of relevant draft rules as reproduced below.

Section 71 of the Companies Act, 2013 states that –

  1. A company may issue debentures with an option to convert such debentures into shares, either wholly or partly at the time of redemption:

Provided that the issue of debentures with an option to convert such debentures into shares, wholly or partly, shall be approved by a special resolution passed at general meeting

  1. No company shall issue any debentures carrying any voting rights.
  2. Secured debentures may be issued by a company subject to such terms and conditions as may be prescribed (emphasis ours).
  3. Where debentures are issued by a company under this section, the company shall create a debenture redemption reserve account out of the profits of the company available for payment of dividend and the amount credited to such account shall not be utilised by the company except for the redemption of debentures.

The draft rules 4.16 applicable for section 71 (3) states that –


4.16. (1) For the purposes of sub-section (3) of section 71, no company shall issue secured debentures unless it complies with the following conditions:

(a) An issue of secured debentures may be made, provided the date of its redemption shall not exceed 10 years from the date of issue. 
Provided that a company engaged in the setting up of  infrastructure projects may issue secured debentures for a period exceeding ten years but not exceeding thirty years;

(b)  such an issue of debentures shall be secured by the creation of a charge, on the properties or assets of the company, having a value which is sufficient for the due repayment of the amount of debentures and interest thereon;

(c)  the company shall appoint a debenture trustee before the issue of prospectus or letter of offer for subscription of its debentures and not later than 60 days after the allotment of the debentures, execute a debenture trust deed to protect the interest of the debenture holders ; and

(d)  security for the debentures by way of a charge or mortgage shall be created in favour of the debenture trustee on-


(i) any specific movable property of the company (not being in the nature of pledge), and/or

(ii) any specific immovable property wherever situate, or any interest therein.

The whammy

As mentioned, the reading of the section and the draft rules indicate that there has to be specific moveable/ immoveable property for security creation. The term ‘specific’ property does not relate to creation of floating charge but implies that there should be a specific and identifiable asset ear-marked for the purpose of creating security.

The term charge on specific (moveable/ immoveable) property cannot be interpreted to mean floating charge as in case of floating charge the asset is not specifically identified. The charge crystallises at the time of enforcement as opposed to charge on specific property which remains ring-fenced as security and renders priority in claims.

For anyone understanding the business and functioning of NBFCs it will be a no brainer to realise that NBFCs do not have immoveable properties on their balance sheet unlike manufacturing entities which would have land/ plant & machinery etc to offer as charge. NBFCs are financial institutions into the business of lending and their asset sides would be dominated by receivables as moveable property. However, clearly the problem here is that the receivables are amortising in nature and one cannot ear-mark/ ring fence them, call them ‘specific’ to create charge on them for the purpose of issuance of secured debentures.

What’s left on platter?

While the rules have not been enforced, if we were to consider that the final rules would contain the language same as draft rules, the conclusion that can be drawn is pretty clear. In the domain of issuance of debentures by NBFCs, optionally convertible debentures will now be public deposits and there are issues of finding the collateral for issuance of secured debentures. The only options left with NBFCs are issuance of compulsorily convertible debentures with no tenure limit on the conversion or contingently convertible debentures or a third instrument that the market may innovate for as they say, necessity is the mother of inventions.

(Nidhi Bothra is executive vice president at Vinod Kothari & Company)


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