Sebi comes out with uniform time period for listing of securities

By Administrator_India

Capital Sands

The Securities and Exchange Board of India (Sebi) on Monday came out with a uniform time period for listing securities, including municipal bonds, issued on a private placement basis.

The timeline will be applicable for non-convertible redeemable preference shares, debt securities, securitised debt instruments, security receipts, and municipal bonds, said Sebi in a circular. The move comes after Sebi received several requests from market participants for clarification on the time period within which such securities need to be listed following completion of the allotment.

After taking feedback from market participants, Sebi decided that allotment of securities would be completed by T+2 trading days after receipt of the funds.

‘T day’ refers to closure of the issue. It added that the issuer needs to make a listing application to bourses and obtain approval from them by the T+4 trading day.

In case of a delay in listing of securities issued on private placement basis after the timeline, the issuer will pay penal interest of 1 per cent per annum over the coupon rate for the period of delay to the investor (from date of allotment to the date of listing), Sebi said.

In addition, the issuer will be permitted to utilise the issue proceeds of its two subsequent privately placed issuances of securities, only after receiving the final listing approval from stock exchanges, it added.

Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

PM Modi wants Yale and Oxford to be able to open campuses in India

By Administrator_ India Capital Sands India’s universities have produced chief executive officers at companies from Microsoft Corp. to Google — now Prime Minister Narendra Modi thinks they can be even better with competition from global names like Yale, Oxford and Stanford. Modi’s government is pushing to overhaul the South Asian […]

You May Like

Subscribe US Now

Error: Your Requested widget " newsletterwidget-2" is not in the widget list.
  • [do_widget_area fullwidth-homepage-sidebar]
    • [do_widget_area sidebar-1]
      • [do_widget id="search-2"]
      • [do_widget id="recent-posts-2"]
      • [do_widget id="archives-2"]
      • [do_widget id="categories-2"]
    • [do_widget_area widgets_for_shortcodes]
      • [do_widget id="newsletterwidget-2"]
    • [do_widget_area wp_inactive_widgets]