Penalty for Non-Listing of Non-Convertible Securities Would Accrue on a Daily Basis at 1% p.a. for Period of Delay | SEBI
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- Last Updated on 10 July, 2024
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Informal Guidance No. SEBI/HO/DDHS/DDHS-PoD-1/P/OW/2024/0000022159/1, Dated: 08.07.2024
Belstar, an NBFC that issued listed non-convertible debentures at a coupon rate of 10%, sought informal guidance w.r.t penal interest for delaying the listing of securities issued via private placement. SEBI clarified that in case of a debt instrument, since interest/coupon/dividend is accrued daily and is payable at a defined interval, the penalty for not listing would also accrue daily. In addition to the coupon/dividend rate, issuer must pay penal interest at the rate of 1% p.a. for the period of delay.
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