Key decisions taken in SEBI Board Meeting

Key decisions taken in SEBI Board Meeting

Brief Overview:

Securities and Exchange Board of India (“SEBI”) in its board meeting has approved amendments to the issue of non-convertible securities in order to promote ease of business and boost investor participation in the Indian bond market.

Technical Details:

SEBI has taken the following measures to strengthen investor participation in the Indian bond markets and provide relaxation to listed entities:

1) Issuers may now have an option to issue privately placed non-convertible debentures (“NCDs”) at a face value of INR 10,000/- (Indian Rupees Ten Thousand Only) instead of the current requirement of INR 1,00,000/- (Indian Rupees One Lakh Only) subject to the appointment of a merchant banker;

2) Existing debt listed entities may disclose their audited financials in the form of a web-link and QR code for subsequent issuances of NCDs;

3) In order to standardise market practice pertaining to record dates, the record date has now been fixed at 15 (fifteen) days prior to the respective due dates; and

4) SEBI has revised the format of due diligence certificates for issue of NCDs across SEBI norms to ensure consistency.

JC takeaway:

The Board Meeting approved the proposals that were previously open to public comments. We can expect amendments to the SEBI regulations in the near future. This is a step forward towards the induction of more retail investors in the Indian bond market.

For further details, please see:  

SEBI | Board Meeting

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