In its board meeting held on June 28, 2023, the Securities and Exchange Board of India (“SEBI”) had approved amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations”) requiring listed entities having outstanding listed non-convertible debt securities (“NCDs”) as on December 31, 2023 to mandatorily list their subsequent issuance of NCDs with the stock exchanges.
Pursuant to the same, vide notification dated September 19, 2023, the LODR Regulations have been amended and regulation 62A (Listing of subsequent issuances of non-convertible debt securities) (“Regulation”) has been added.
As per the Regulation:
It is also pertinent to note that as per the Regulation, listed entities are not required to list the following securities:
Furthermore, as per the Regulation, securities issued by the listed entity under (ii) and (iii) above, are required to be locked in and held till maturity by the investors and shall be unencumbered. Furthermore, a listed entity proposing to issue securities under (i), (ii) or (iii) above is required to disclose to the relevant stock exchange all the key terms of such securities, including embedded options, security offered, interest rates, charges, commissions, premium, period of maturity etc.
Please find a copy of the Regulation, here.
This update has been contributed by Nidhi Arya (Partner) and Ayushi Jain (Associate).
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