SEBI streamlines the process for public issue of debt securities

Mumbai: Markets regulator Sebi on Thursday decided to streamline the process of public issuance of debt securities to provide faster access to funds for such issuers. Under this, SEBI’s board has decided to reduce the period for seeking public comments on draft offer documents from 7 working days to 1 day for those whose specified securities are already listed and 5 days for other issuers.

Additionally, the minimum subscription period has been reduced from 3 to 2 working days, and the listing timeline has been reduced from T+6 to T+3 working days, which will initially be optional and mandatory for one year, Sebi chief Madhabi Puri said. Buch said at a press conference.

Also, SEBI has retained QR code/link and other application modes in newspapers for Rs. Provided relief in disclosure of public issues through electronic modes with streamlined application processes using UPI for individual investors up to 5 lakhs.

“With a view to ease of doing business and providing flexibility to issuers, the Board has approved the proposal to streamline the public issue process for Debt Securities and Non-Convertible Redeemable Preference Shares (NCRPS) so as to provide faster access to funds for issuers,” Sebi said.

In addition, SEBI has simplified the disclosure requirements for non-convertible securities in offer documents. It has done away with the requirement of disclosure of PAN and personal address of promoters in the offer documents.

The regulator clarified that key operational and financial parameters will be disclosed in line with financial information requirements. It provides details of branches and vendors through QR codes and web links with information available to debenture trustees.

SEBI has aligned the disclosure procedures for use of issue proceeds and repayment liability timelines for listed commercial papers with debt securities.

Further, the regulator has approved guidelines for category I and II AIF borrowing and tenure extension for Large Value Fund (LVF).

Under this SEBI has decided to allow Category I and II AIFs to borrow temporarily up to 30 days to cover temporary investor shortfalls while investing.

Borrowing costs will be charged to investors responsible for the shortfall.

Additionally, a 30-day gap between consecutive borrowings will be required.

Sebi said the extension of LVF tenure will be limited to five years and will require the approval of two-thirds of unit holders based on value.

If not liquidated after expansion, LVFs can opt for a longer liquidation period like other AIFs.

Sebi said existing LVFs will have to align their extension terms with the new five-year limit within three months, with an option to revise the original tenure of the scheme with investor consent.