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A Subordinated Debt (Sub-Debt) refers to an investment scheme that Non-Banking Financing Companies provide as per the directions of Reserve Bank of India. Sub-Debts offer greater returns on the principal invested when compared to the returns generated from a regular savings account. The offer of Sub-Debt is being made to enhance the long-term resources of the Company and to augment the business activities carried on by the Company. This will be treated as a part of Tier II capital of the Company. Sub-Debts Investors need to remember that they cannot withdraw money before maturity without necessary approvals from the regulatory authorities

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