Mumbai, Markets regulator Sebi on Thursday decided to simplify the process of public issuance of debt securities to provide faster access to funds for such issuers.
Under this, the Sebi board has decided to reduce the period for inviting public comments on the draft offer documents from 7 working days to 1 day for issuers whose specific securities are already listed and to 5 days for other issuers.
Additionally, the minimum subscription period was reduced from 3 to 2 business days, and the listing schedule was reduced from T+6 to T+3 business days, which will initially be optional for one year and mandatory thereafter, it said. Sebi chief Madhabi Puri. Buch said in a press conference.
Additionally, Sebi has provided flexibility in advertising public issues through electronic modes, with QR codes/links in newspapers and harmonized application procedures using UPI for individual investors up to Rs 5 lakh, while maintaining other application modes.
"With a view to facilitating ease of doing business and providing flexibility to issuers, the Board approved the proposal to expedite the process of public issuance of debt securities and non-convertible redeemable preference shares (NCRPS) to provide faster access to funds for issuers," Sebi said.
Additionally, Sebi has simplified disclosure requirements for non-convertible securities in offer documents. It has removed the requirement of disclosure of PAN and personal address of promoters in the offer documents.
The regulator clarified that key operational and financial parameters will be disclosed in accordance with financial reporting requirements. Provided details of branches and suppliers via QR code and web link, with information available to debenture trustees.
Sebi has aligned disclosure procedures for utilization of issue proceeds and timing of payment obligations for listed commercial papers with debt securities.
Additionally, the regulator has approved borrowing guidelines for Category I and II AIFs and holding extensions for Large Value Funds (LVFs).
Under this, Sebi has decided to allow Category I and II AIFs to borrow temporarily for up to 30 days to meet temporary shortfalls of investors in making investments.
The costs of the loan will be borne by the investors responsible for the deficit. Additionally, a 30-day interval will be required between consecutive loans.
Sebi said LVF tenure extensions will be limited to five years and will require approval from two-thirds of unit owners by value.
If it is not liquidated after the extension, LVF may opt for additional dissolution periods like other AIFs.
Sebi said existing LVFs must align their extension terms with the new five-year limit within three months, with the option to revise the base duration of the plan with the consent of investors.
Under this, the Sebi board has decided to reduce the period for inviting public comments on the draft offer documents from 7 working days to 1 day for issuers whose specific securities are already listed and to 5 days for other issuers.
Additionally, the minimum subscription period was reduced from 3 to 2 business days, and the listing schedule was reduced from T+6 to T+3 business days, which will initially be optional for one year and mandatory thereafter, it said. Sebi chief Madhabi Puri. Buch said in a press conference.
Additionally, Sebi has provided flexibility in advertising public issues through electronic modes, with QR codes/links in newspapers and harmonized application procedures using UPI for individual investors up to Rs 5 lakh, while maintaining other application modes.
"With a view to facilitating ease of doing business and providing flexibility to issuers, the Board approved the proposal to expedite the process of public issuance of debt securities and non-convertible redeemable preference shares (NCRPS) to provide faster access to funds for issuers," Sebi said.
Additionally, Sebi has simplified disclosure requirements for non-convertible securities in offer documents. It has removed the requirement of disclosure of PAN and personal address of promoters in the offer documents.
The regulator clarified that key operational and financial parameters will be disclosed in accordance with financial reporting requirements. Provided details of branches and suppliers via QR code and web link, with information available to debenture trustees.
Sebi has aligned disclosure procedures for utilization of issue proceeds and timing of payment obligations for listed commercial papers with debt securities.
Additionally, the regulator has approved borrowing guidelines for Category I and II AIFs and holding extensions for Large Value Funds (LVFs).
Under this, Sebi has decided to allow Category I and II AIFs to borrow temporarily for up to 30 days to meet temporary shortfalls of investors in making investments.
The costs of the loan will be borne by the investors responsible for the deficit. Additionally, a 30-day interval will be required between consecutive loans.
Sebi said LVF tenure extensions will be limited to five years and will require approval from two-thirds of unit owners by value.
If it is not liquidated after the extension, LVF may opt for additional dissolution periods like other AIFs.
Sebi said existing LVFs must align their extension terms with the new five-year limit within three months, with the option to revise the base duration of the plan with the consent of investors.
