SEBI Issues Consultation Paper on Review of Provisions of NCS Regulations and LODR Regulations for EODB

Consultation Paper DDHS – POD 1, Dated 09.12.2023

Pursuant to the Budget Announcement in the Union Budget for FY 2023-24, requesting suggestions to promote the ease of doing business for listed debt issuers and review the applicability of certain provisions. It has been proposed that issuers that have listed outstanding NCDs as on the date of the issue document or issue opening date, may insert a QR code, the scanning of which opens a web-link for the Audited Financials for last 3 FYs.

Also, the SEBI has also proposed to modify Regulation 52(8) of the LODR Regulations to provide the listed entity, discretion to publish the financial results in a newspaper within the specified time period.

Further, it has also been proposed to permit issuer to issue NCDs or NCRPS with the face value of Rs. 10,000/-. However, in such cases, the issuer shall appoint merchant banker who shall carry out due diligence for issuance of such privately placed NCDs or NCRPS and disclosures in the private placement memorandum.

Further, such NCDs and NCRPS shall be plain vanilla, interest/dividend bearing instruments with a simple structure (i.e. without any credit enhancements or structured obligations). Various other proposals were notified.

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