IDBI Bank plans to float infrastructure debt fund in India

IDBI Bank plans to float an infrastructure debt fund to accelerate the flow of funds to the infrastructure projects in India.

Mr R.M. Malla, Chairman and Managing Director of IDBI Bank said,'' Our bank is mulling the option of setting up an infrastructure finance company for floating the fund and is awaiting the RBI's ( Reserve Bank of India) guidelines for the same. We have plans to float an infrastructure debt fund and are awaiting RBI’s guidelines for the same"

The Central Government had come up with a framework for floating and regulating infrastructure debt funds in June 2011. As per the framework, companies would have a choice to either use the asset management company (Mutual Fund) route or the NBFC (Non Banking Finance Company ) route to float the fund.

The Government has further suggested that a trust-based debt fund (mutual fund) should be regulated by the Securities and Exchange Board of India while the Reserve Bank of India should oversee a fund set up as a NBFC.
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