The government should explore various options that can nurture IDF in an industry-friendly way, writes Vivek Rao. While conceptually Infrastructure Debt Funds (IDFs) would be very attractive for all stakeÂholders of the infrastructure sector including private sector developers, banks as well as the goverÂnment, IDFs would have to address certain challenges.
Tag: SEBI
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LIC, IL&FS propose $2 bn infra fund
Life Insurance Corporation of India (LIC) plans to hold 10 per cent stake in the proposed $2 billion infrastructure debt fund (IDF) that it would set up in coordination with IL&FS.
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GVFL to float Rs 1,000-cr fund
Aimed at strengthening the trade ties with China, Gujarat Venture Finance (GVFL) plans to launch a Rs 1,000-crore green energy fund to attract Chinese companies. According to GVFL, the fund is specific to Chinese companies interested in setting up plants for equipment
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RBI eases IDF norms for NRIs
The Reserve Bank of India (RBI) has decided to allow eligible non-resident investors to invest, on a repatriation basis, in rupee and foreign currency denominated bonds issued by the Infrastructure Debt Funds (IDFs) set up as non-banking financial companies.
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Banks should be nodal agencies to IDF
S Vishvanathan, MD and CEO, SBI Capital Markets, explains why the regulators of IDF have taken a rather cautious approach in developing it, and suggests that banks can take on the initial risk and then pass it on to IDFs-thus retaining the asset throughout the project.
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A new opportunity to participate in Indian infrastructure
The government is finally preparing to launch its first IDF this year, albeit with a $3 billion corpus open to domestic investors alone. Vishal Shah and Smit Sheth hail IDF as a good beginning, but contend that the definition of infrastructure needs to be sharpened.
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Infra Debt Funds: Creating new wealth
IDFs come as a new solution to debt finance to long-term, high-value infrastructure sectors. Eligibility norms for IDFs are rather stringent but justified given the risks and quantums-typical of infrastructure investment-involved.
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SEBI's new takeover code
The Board meeting of SEBI held recently announced the new takeover code based on the report of the Takeover Regulations Advisory Com-miÂttee (TRAC) submitted earÂlier in July 2010.
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Lock-in period of infra bonds to be halved
Aiming at creating greater interest among foreign investors, the Finance Ministry has decided to halve the lock-in period for foreign portfolio investments in infrastructure boÂnds to on-and-a-half years.
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MFs with 5-yr record can float infra debt funds
With regard to the infrastructure debt funds (IDFs), the SEBI board has approved the framework for setting up of the IDF by any existing mutual fund house that has been in the infrastructure financing business for at least five years.