Sebi proposes amendments to ease compliance for entities with listed NCDs

Capital markets regulator Sebi on Friday proposed amendments to ease the compliance requirements for entities with listed non-convertible securities.

This move will ease the cost of compliance for participants in the financial sector, as announced by the government in FY 2023-24 Budget.

In its consultation paper, Sebi proposed aligning the approval and authentication process for financial results of entities with listed non-convertible securities to that of equity-listed entities.

This will streamline the procedures, ensuring that financial results are approved by board of directors and signed by a designated official, similar to the requirements for equity-listed entities.

The regulator also proposed to align the provisions of disclosure rules for fraud and default by key managerial personnel in entities with listed non-convertible securities with those applicable to equity-listed entities.

 

As per the consultation paper, Sebi said it will also streamline the timeline for notifying the stock exchanges of record date by entities with listed non-convertible securities may be reduced from 7 to 3 working days. This proposal will provide ample time for market participants to respond.

The regulator's Corporate Bonds and Securitisation Advisory Committee also proposed mandating that all disclosures by listed entities with non-convertible securities be filed in the XBRL (eXtensible Business Reporting Language) format.

The change will streamline the filing process and reduce duplication.

Currently, the entities are required to submit filings in both XBRL and PDF formats.

Additionally, it also proposed relaxing the restrictions on International Securities Identification Numbers (ISINs) for unlisted securities that were outstanding as of December 31, 2023, if those ISINs are subsequently listed.

This measure will reduce the regulatory burden on entities with multiple ISINs and facilitating their transition to a listed status.

The Securities and Exchange Board of India (Sebi) has invited public comments and suggestions on the consultation paper by September 6.