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Informist, Tuesday, Oct. 1, 2024

 

NEW DELHI – The Securities and Exchange Board of India Monday brought companies with non-convertible securities listed on stock exchanges at par with equity-listed entities in terms of some disclosures and compliances. The decisions were part of the regulator's board meeting.

 

Companies with listed non-convertible debentures will now have to approve and authenticate their financial results at par with equity listed entities. This will include the board of directors specifically approving the financial results and the chairman or the managing director signing off on them. Moreover, these companies will now have to disclose fraud and default, with respect to price-sensitive information, to the exchanges. Finally, entities with listed non-convertible debentures have to file their disclosures in the XBRL, or extensible business reporting language, digital file format used by listed companies, SEBI said.

In addition to these changes, entities with listed securities will have to inform stock exchanges of the record date of their securities at least three days before listing, instead of seven earlier. Finally, the market regulator allowed companies to list debentures beyond the limit of 14 ISINs, or International Securities Identification Numbers, in a financial year. This would be allowed only for previously unlisted debentures which were outstanding as on Dec. 31, 2023. All these proposals were in a consultation paper brought out by SEBI on Aug. 17, and have been confirmed without much change by the regulator.

 

The regulator made the necessary amendments in the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the SEBI (Issue and Listing of Non-Convertible Securities) Regulations), 2021. It said the changes were made to grow the bond market and to facilitate ease of doing business, as well as streamline compliance.

 

SEBI also told companies with listed non-convertible debentures that instead of a consent form for investors, they must draw up "debenture trustee agreements. These agreements must be available through a quick-response code or a weblink to the investor. Even in the case of gaining investments through a General or Key Information Document, or through a prospectus, the agreements should be available through the digital modes, the regulator said.  End

 

Reported by Aaryan Khanna

Edited by Ashish Shirke

 

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