New Delhi: In a bid to increase participation of retail investors in the corporate bond market, Sebi on Tuesday decided to reduce the face value of such debt securities to Rs 10,000 from the current Rs 1 lakh.
The SEBI Board in its meeting has also decided to bring in a framework for Unit-Based Employee Benefits (UBEB) in the context of REITs (real estate investment trusts) and InvITs (infrastructure investment trusts), the market watchdog said in a statement. . ,
Apart from reducing the denominations, SEBI has standardized the record date for identification of eligible holders, harmonized the format of due diligence certificate provided by the debenture trustee and the publication of financial results in newspapers for those entities. Provided flexibility in respect of those who hold only non-convertible securities. ,
Sebi said its board has approved the proposal to provide issuers the option of issuing NCDs or NCRPS through private placement mode at a lower face value of Rs 10,000 with no requirement to appoint a merchant banker.
Such non-convertible debentures (NCDs) and non-convertible redeemable preference shares (NCRPS) should be plain vanilla, interest or dividend-bearing instruments.However, credit enhancement will be allowed in such instruments.
In order to remove anomalies related to determination of record dates and to bring about uniformity and standardization in terms of market practice followed by various issuers, the SEBI Board approved the proposal that for interest repayment of principal of debt securities or NCRPS There must be a record date. B. 15 days before the due dates of such payment obligations.
To reduce the size of the offer document, the Board approved a proposal that issuers that have listed outstanding non-convertible securities as on the date of the offer document should submit their audited financials for the last three years through amalgamation. Disclosure should be permitted. A web-link and QR code in the proposal document.With a view to reduce the cost of compliance for a listed entity, the Board approved the proposal that only entities with listed non-convertible securities should have the option to furnish information in terms of a QR code, which is an integral part of the website. There is a link. The listed entity and the stock exchange report in the newspaper regarding the financial results of the listed entity rather than the disclosure of full financial results.
This option can be exercised by issuers for outstanding non-convertible securities.
On unit-based employee benefits, Sebi said managers of REITs or investment managers of InvITs can offer UBEB schemes to their employees on the basis of units of the REIT or InvIT.
“Investment managers/managers may receive units of the InvIT/REIT in exchange for a management fee, for the purpose of providing unit-based employee benefits.Such units will be allotted directly to the Employee Benefit Trust so that these units can be used exclusively. UBEB scheme,” SEBI said.
With a view to simplify the compliance requirements for Market Infrastructure Institutions (MIIs), the Regulatory Board has approved various proposals, including the proposal that MIIs continue to disclose their shareholding patterns in the format applicable to listed companies. and no longer need to make additional disclosures. It's in a different format.
Sebi said other decisions related to ease of doing business such as issuing consolidated account statements in electronic form by default and rationalizing the inspection period of commodity warehouses will be issued through circulars.
The SEBI Board in its meeting has also decided to bring in a framework for Unit-Based Employee Benefits (UBEB) in the context of REITs (real estate investment trusts) and InvITs (infrastructure investment trusts), the market watchdog said in a statement. . ,
Apart from reducing the denominations, SEBI has standardized the record date for identification of eligible holders, harmonized the format of due diligence certificate provided by the debenture trustee and the publication of financial results in newspapers for those entities. Provided flexibility in respect of those who hold only non-convertible securities. ,
Sebi said its board has approved the proposal to provide issuers the option of issuing NCDs or NCRPS through private placement mode at a lower face value of Rs 10,000 with no requirement to appoint a merchant banker.
Such non-convertible debentures (NCDs) and non-convertible redeemable preference shares (NCRPS) should be plain vanilla, interest or dividend-bearing instruments.However, credit enhancement will be allowed in such instruments.
In order to remove anomalies related to determination of record dates and to bring about uniformity and standardization in terms of market practice followed by various issuers, the SEBI Board approved the proposal that for interest repayment of principal of debt securities or NCRPS There must be a record date. B. 15 days before the due dates of such payment obligations.
To reduce the size of the offer document, the Board approved a proposal that issuers that have listed outstanding non-convertible securities as on the date of the offer document should submit their audited financials for the last three years through amalgamation. Disclosure should be permitted. A web-link and QR code in the proposal document.With a view to reduce the cost of compliance for a listed entity, the Board approved the proposal that only entities with listed non-convertible securities should have the option to furnish information in terms of a QR code, which is an integral part of the website. There is a link. The listed entity and the stock exchange report in the newspaper regarding the financial results of the listed entity rather than the disclosure of full financial results.
This option can be exercised by issuers for outstanding non-convertible securities.
On unit-based employee benefits, Sebi said managers of REITs or investment managers of InvITs can offer UBEB schemes to their employees on the basis of units of the REIT or InvIT.
“Investment managers/managers may receive units of the InvIT/REIT in exchange for a management fee, for the purpose of providing unit-based employee benefits.Such units will be allotted directly to the Employee Benefit Trust so that these units can be used exclusively. UBEB scheme,” SEBI said.
With a view to simplify the compliance requirements for Market Infrastructure Institutions (MIIs), the Regulatory Board has approved various proposals, including the proposal that MIIs continue to disclose their shareholding patterns in the format applicable to listed companies. and no longer need to make additional disclosures. It's in a different format.
Sebi said other decisions related to ease of doing business such as issuing consolidated account statements in electronic form by default and rationalizing the inspection period of commodity warehouses will be issued through circulars.
