Sebi amends rules to streamline public issuance of debt securities

Markets regulator Sebi has amended rules to streamline the process for public issuance of debt securities aimed at providing faster access to funds for such issuers.

Under the amended rules, Sebi has reduced the period for seeking public comments on the draft offer documents from 7 working days to 1 day for issuers whose specified securities are already listed and 5 days for other issuers.

"The issuers whose specified securities are listed on a recognised stock exchange having nationwide trading terminals shall post the draft offer document filed with stock exchange(s) for one day immediately after the date of filing the draft offer document with stock exchange(s)," the regulator said in a notification.

 

Also, the minimum subscription period has been cut from 3 to 2 working days. Further, in case of revision in the price band or yield, the bidding period disclosed in the offer documents, can be extended by one working day instead of three working days.

The new rules are aimed at facilitating ease of doing business and providing flexibility to issuers.

Additionally, Sebi has provided flexibility to issuers by providing discretion to them with regard to advertisement of public issues through electronic modes subject to a window advertisement (containing a QR Code and Link to full advertisement) in newspapers.

Further, Sebi has simplified disclosure requirements for non-convertible securities in the offer documents. It has removed the requirement for PAN and personal address disclosure of promoters in offer documents.

The regulator clarified the key operational and financial parameters will be disclosed in line with financial information requirements.

To give this effect, Sebi's issue and listing of non-convertible securities rules have been amended on September 17 that became effective from the same day.