SEBI clarifies on the applicability of the framework relating to ‘schemes of arrangement’ for entities with listed debt securities
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- Last Updated on 13 December, 2022
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Circular No. SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2022/170, Dated 09.12.2022
Earlier, the SEBI had issued operational guidelines w.r.t. “Scheme(s) of Arrangement by entities who have listed their Non-convertible Debt securities / Non-convertible Redeemable Preference shares”. Now, SEBI has clarified that such guidelines shall not apply to a Scheme of Arrangement which solely provides for an arrangement between a debt-listed entity and its unlisted wholly-owned subsidiary.
However, such debt-listed entity shall file the draft Scheme of Arrangement with Stock Exchange(s) for the purpose of disclosure, and the Stock Exchange(s) shall disseminate the scheme documents on their websites. Further, Chapter XII of the LODR Operational Circular, dated July 29, 2022, will accordingly stand modified.
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