Better norms for primary issuance of debt securities by SEBI
Market regulator SEBI relaxed the norms for primary issuance of debt securities by companies, in a bid to develop the country’s corporate bond market. As per the new measures implemented by Sebi, cash flows emanating from the debt securities would have to be disclosed in the prospectus or the disclosure document by way of an illustration.
Sebi said in a circular that it has been pointed out by the market participants that the disclosures can further be improved, if cash flows concerning interest payment and redemption of debt securities are given by way of illustration in the offer document.
The regulator has also decided that if the coupon payment date of the debt securities, falls on a Sunday or a holiday then the payment would be made on the next working day.
In case the maturity date of the debt securities, falls on a Sunday or a holiday, the redemption proceeds would be paid on the previous working day. These measures would be applicable to debt securities issued from 1 December 2013.
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Business EditorBetter norms for primary issuance of debt securities by SEBI
by Business Editor ( Author at Spirit India )
Posted on October 30th, 2013 at 2:53 pm.
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