Brief Overview:
SEBI continues to motivate entities to access the listed debt securities by providing relaxation in maximum number of ISINs that can be utilized for listed debt securities in a given maturing year.
Securities and Exchange Board of India (“SEBI”) vide a circular dated 13th December 2024 has provided for the relaxation from the ISIN restriction limit for issuers desirous of listing originally unlisted ISINs (outstanding as on December 31, 2023).
Technical Details:
Pursuant to the previous amendments of the Securities and Exchange Board of India (“SEBI”), it was mandatory for debt listed entities to list all non-convertible debt securities proposed to be issued on or after January 1, 2024. However, the existing unlisted debt securities (outstanding as on December 31, 2023) could continue to remain unlisted till maturity and it was optional for issuers to get such unlisted debt issuances listed.
Parallelly, as per the SEBI’s requirements, an entity cannot have more than a specified number of International Securities Identification Numbers (“ISINs”) maturing in a particular year. Operationally, if the entities were desirous to convert their unlisted debt to listed, it could lead to breach of the prescribed ISIN limit for a lot of issuers.
Addressing this concern, SEBI vide its circular dated 13th December 2024 has provided relaxations from the applicability maximum number of ISINs in a given year of maturity in case the unlisted debt securities issued prior to December 31, 2023, are listed on the stock exchange.
Key Takeaway:
SEBI’s actions are encouraging the participants of debt capital markets to access the listed space thereby deepening the listed bond market in India.
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