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NEW DELHI: To improve the participation of retail buyers within the corporate bond market, Sebi on Tuesday determined to drastically cut the face value of such debt securities to Rs 10,000 from Rs 1 lakh at current. The Sebi board in its assembly has additionally determined to come out with a framework for unit-primarily based worker advantages (UBEB) within the context of REITs (actual property funding trusts) and InvITs (infrastructure funding trusts), the market watchdog mentioned in a press release.
Apart from reducing the denomination, Sebi has standardised the document date for figuring out eligible holders, harmonised the format of the due diligence certificates offered by the debenture trustee and offered flexibility relating to publication of economic ends in newspapers for entities which have listed solely non-convertible securities.
Sebi mentioned that its board permitted the proposal to present an possibility to the issuers to difficulty NCDs or NCRPS by way of non-public placement mode at a lowered face value of Rs 10,000 together with the requirement to appoint a service provider banker.
Such non-convertible debentures (NCDs) and non-convertible redeemable desire shares (NCRPS) ought to be plain vanilla, curiosity or dividend-bearing devices. However, credit score enhancements could be permitted in such devices.
To handle the inconsistencies relating to the fixation of document dates and to carry uniformity and standardisation by way of market apply adopted by numerous issuers, the Sebi board permitted the proposal that document date for the cost of curiosity compensation of principal of debt securities or NCRPS ought to be 15 days prior to the due dates of such cost obligations.
In order to cut back the dimensions of the provide doc, the board cleared a proposal that issuers which have listed excellent non-convertible securities as on the date of the provide doc ought to be allowed to disclose audited financials for the final three years by way of the insertion of an internet-hyperlink and QR code within the provide doc.
With an intention to cut back the price of compliance for the listed entity, the board permitted the proposal that entities with solely listed non-convertible securities ought to have the choice to give an intimation with a reference to the QR code and hyperlink of the web site of the listed entity and inventory trade within the newspapers relating to the monetary outcomes of the listed entity as a substitute of disclosure of full monetary outcomes.
This possibility might be exercised by the issuers for excellent non-convertible securities.
On unit-primarily based worker advantages, Sebi mentioned that the supervisor of REIT or the funding supervisor of InvIT can provide UBEB schemes for his or her staff primarily based on the models of REIT or InvIT.
“The investment manager/manager may receive the units of InvIT/REIT in lieu of management fees, for the purpose of providing unit-based employee benefits. Such units shall be allotted directly to the Employee Benefit Trust so that these units are used exclusively for the UBEB scheme,” Sebi mentioned.
With the target of easing compliance necessities for market infrastructure establishments (MIIs), the regulator’s board has cleared numerous proposals, together with the proposal that the MIIs could proceed to disclose their shareholding sample within the format relevant to listed corporations and are not moreover required to disclose it in a separate format.
Other choices associated to ease of doing enterprise like issuance of consolidated account statements in digital type by default, and rationalisation of inspection interval of commodity warehouses could be issued by the use of circulars, Sebi mentioned.
Apart from reducing the denomination, Sebi has standardised the document date for figuring out eligible holders, harmonised the format of the due diligence certificates offered by the debenture trustee and offered flexibility relating to publication of economic ends in newspapers for entities which have listed solely non-convertible securities.
Sebi mentioned that its board permitted the proposal to present an possibility to the issuers to difficulty NCDs or NCRPS by way of non-public placement mode at a lowered face value of Rs 10,000 together with the requirement to appoint a service provider banker.
Such non-convertible debentures (NCDs) and non-convertible redeemable desire shares (NCRPS) ought to be plain vanilla, curiosity or dividend-bearing devices. However, credit score enhancements could be permitted in such devices.
To handle the inconsistencies relating to the fixation of document dates and to carry uniformity and standardisation by way of market apply adopted by numerous issuers, the Sebi board permitted the proposal that document date for the cost of curiosity compensation of principal of debt securities or NCRPS ought to be 15 days prior to the due dates of such cost obligations.
In order to cut back the dimensions of the provide doc, the board cleared a proposal that issuers which have listed excellent non-convertible securities as on the date of the provide doc ought to be allowed to disclose audited financials for the final three years by way of the insertion of an internet-hyperlink and QR code within the provide doc.
With an intention to cut back the price of compliance for the listed entity, the board permitted the proposal that entities with solely listed non-convertible securities ought to have the choice to give an intimation with a reference to the QR code and hyperlink of the web site of the listed entity and inventory trade within the newspapers relating to the monetary outcomes of the listed entity as a substitute of disclosure of full monetary outcomes.
This possibility might be exercised by the issuers for excellent non-convertible securities.
On unit-primarily based worker advantages, Sebi mentioned that the supervisor of REIT or the funding supervisor of InvIT can provide UBEB schemes for his or her staff primarily based on the models of REIT or InvIT.
“The investment manager/manager may receive the units of InvIT/REIT in lieu of management fees, for the purpose of providing unit-based employee benefits. Such units shall be allotted directly to the Employee Benefit Trust so that these units are used exclusively for the UBEB scheme,” Sebi mentioned.
With the target of easing compliance necessities for market infrastructure establishments (MIIs), the regulator’s board has cleared numerous proposals, together with the proposal that the MIIs could proceed to disclose their shareholding sample within the format relevant to listed corporations and are not moreover required to disclose it in a separate format.
Other choices associated to ease of doing enterprise like issuance of consolidated account statements in digital type by default, and rationalisation of inspection interval of commodity warehouses could be issued by the use of circulars, Sebi mentioned.
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