The Securities and Exchange Board of India (Sebi) has presented new rules to facilitate the public issuance strategy for debt securities, whose aim is to deliver faster access to funds for issuers. These modifications are made to provide ease of doing business and offer greater flexibility to issuers.
One of the main modifications is the reduction in the period for pursuing public comments on draft offer documents. For issuers whose restricted securities are already listed on a realised stock exchange with nationwide trading terminals, the period has been shortened from 7 working days to just one day.
The period has been decreased to 5 days for other issuers. Issuers must post the draft offer document on the stock exchange(s) one day after filing it.
Also, the minimum subscription period has been shortened from 3 to 2 working days. If there is a revision in the price band or yield, the bidding period announced in the offer documents can now be opened by one working day rather than three.
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Sebi has also given issuers with more flexibility about the advertisement of public issues. Issuers can now use electronic modes for advertisements, provided they have a newspaper window advertisement containing a QR code and a link to the full advertisement.
Also, Sebi has facilitated the exposure needs for non-convertible securities in the offer documents. The requirement to inform the promoters’ PANs and personal addresses has been removed. Instead, financial information requirements will reveal critical operational and financial parameters.
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These modifications to Sebi’s issue and listing of non-convertible securities laws were made effective on September 17, 2024. The changes are anticipated to improve the efficiency of the public issuance process and provide issuers with faster access to capital.
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The information provided in this article is for general informational purposes only and should not be construed as financial advice. While we aim to keep the content accurate and up to date, regulations and market conditions may change. Always consult with a qualified financial advisor or legal expert before making any investment decisions based on public issuances or regulatory amendments. This site holds no liability for any inaccuracies or omissions.
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