SEBI Issues consultation paper on Reduction in timelines for public issue of debt securities under the SEBI (Issue and Listing of Debt Securities) Regulations, 2008

Securities & Exchange Board of India (SEBI) vide circular dated April 20, 2018 has issued consultation paper on Reduction in timelines for public issue of debt securities under the SEBI (Issue and Listing of Debt Securities) Regulations, 2008.

Following proposals are suggested:-

1)       Reduction in timeline in listing and trading post closure of the issue

·       In order to ensure uniformity, standardization and streamlining of issuance of debt securities with that of equity shares and convertibles, it is proposed to reduce the time lines for the public issue of debt securities from T+12 to T+6

2)       Making ASBA mandatory for public issue of debt securities:

·       In order to ensure standardization and streamlining of issuance of debt securities with that of equity shares and convertibles, it is proposed to make ASBA mandatory for public issue of debt securities under the SEBI (ILDS Regulations).

·       mandatory ASBA facility would reduce the time taken for collecting banks to commence clearing of payment instruments, forwarding application forms along with bank schedules to registrar; undertaking of technical rejection test, Page 4 of 6 submission of status of clearance status of payment instrument to around 4-5 days as against the present time of 7 days

3)        Mandatory allotment of debt securities in demat form:

·       It is  proposed that allotment and subscription of debt securities in demat mode may be made compulsory for public issue of debt securities under the SEBI (ILDS) Regulations for all classes of investors, without providing any flexibility of subscription in physical mode under the Depositories Act, 1996

Public comments are invited on the consultation paper which may be sent by email (bonds@sebi.gov.in) or through post before May 14, 2018.

 

URL  https://www.sebi.gov.in/reports/reports/apr-2018/reduction-in-timelines-for-public-issue-of-debt-securities-under-the-sebi-issue-and-listing-of-debt-securities-regulations-2008_38741.html