In other changes for such issuers, the credit ratings need to be obtained either from an agency registered with Sebi or from any other agency registered in a Financial Action Task Force (FATF) member jurisdiction.
Earlier, the credit rating for debt issues needed to be obtained either from a Sebi-registered agency or from any other agency registered in a foreign jurisdiction.
In a circular, Sebi also said an issuer of debt securities will need to enter into an agreement with a depository or custodian, registered in an FATF member jurisdiction, for holding and safekeeping of such securities and also to facilitate transfer, redemption and other corporate actions.
Earlier, such arrangement was allowed with a depository or custodian eligible to operate in the IFSC. The country's only IFSC is in GIFT City near Ahmedabad in Gujarat.
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For reporting of financial statements, the entities issuing or listing their debt securities in IFSC need to prepare their statement of accounts in accordance with the IFRS/US GAAP or accounting standards as applicable to them in their place of incorporation.
If an entity does not prepare its statement of accounts in accordance with IFRS/US GAAP, a quantitative summary of significant differences between national accounting standards and IFRS can be prepared and incorporated in the relevant disclosure documents to be filed with the exchange.
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