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Informist, Friday, Dec. 13, 2024

MUMBAI – The Securities and Exchange Board of India has relaxed International Securities Identification Number restrictions for issuers looking to list originally unlisted ISINs as of Dec. 31, 2023, the market regulator said in a circular on Friday. The changes will provide more flexibility to issuers who wish to list unlisted debt securities issued before Dec. 31, 2023. These newly listed ISINs will no longer count toward the annual ISIN limit of 14. This is expected to make it easier for issuers to list their existing securities and improve liquidity in the market.

An ISIN is a unique alphanumeric code used to identify securities. Under previous SEBI regulations, issuers were limited to a maximum of 14 ISINs maturing each year for most types of debt securities. Of these, only nine could be used for plain vanilla debt securities, while up to five could be used for structured or market-linked debt securities. These rules were designed to prevent fragmentation in the corporate bond market and to limit the issuance of excessive debt securities, which could complicate market operations. The circular clarified that the unlisted ISINs as of Dec. 31, 2023, will not be subject to this cap once they are converted to listed ISINs.

This change aligns with Regulation 62A of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015, which mandates that all non-convertible debt securities issued after Jan. 1, 2024, must be listed on the stock exchanges.  End

Reported by Sachi Pandey

Edited by Ashish Shirke

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