On October 18, 2024, the Securities and Exchange Board of India (SEBI) issued a circular clarifying the use of 3-in-1 accounts for submitting applications in public issues of debt securities, non-convertible redeemable preference shares, municipal debt securities, and securitised debt instruments. This clarification addresses feedback received on the need to explicitly specify the usage of these accounts, which combine online trading, demat, and banking facilities into one. According to the circular, investors can continue using 3-in-1 accounts for submitting bid-cum application forms online, in addition to other existing modes outlined in previous SEBI circulars, including the May 2024 Master Circular and the September 2024 update. This guidance aims to simplify and enhance the application process for public issues. SEBI issued this clarification under its regulatory powers to protect investors and regulate the securities market. The full circular is available on SEBI’s official website.
Securities and Exchange Board of India
Circular No. SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2024/142 Dated: October 18, 2024
To,
Issuers who propose to list debt securities, non-convertible redeemable
preference shares, municipal debt securities or securitised debt instruments;
Recognised Stock Exchanges;
Registered Merchant Bankers;
Registered Stock Brokers;
Depositories and Registered Depository Participants;
Registered Bankers to an Issue;
Registered Registrars to an Issue and Share Transfer Agents; and
Self Certified Syndicate Banks (SCSBs)
Madam/ Sir,
Subject: Clarification with regard to usage of 3 – in – 1 type accounts for making an application in public issue of securities
1. Para 2 of Chapter I (Application process in case of public issues of securities and timelines for listing) of the Master Circular no. SEBI/HO/DDHS/PoD1/P/CIR/2024/54 dated May 22, 2024, (hereinafter referred as ‘Master Circular’) issued by SEBI, prescribes provisions pertaining to application process in case of public issue of securities under SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021, SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015 and SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008.
2. SEBI has received feedback that there is a need to explicitly specify the usage of 3-in-1 type accounts for making an application in public issue of debt securities, non- convertible redeemable preference shares, municipal debt securities and securitised debt instruments.
3. Accordingly, it is clarified that, in addition to existing modes of making an application in public issue of securities as specified under para 2 of the aforesaid Master Circular and notwithstanding the provision specified under para 2 of SEBI circular SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2024/128 dated September 24, 2024, investors may continue to submit the bid-cum application form online using the facility of linked online trading, demat and bank account (3-in-1 type accounts).
4. This Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 55 (1) of the SEBI (Issue and Listing of Non-convertible Securities) Regulations, 2021, Regulation 29 of SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015 and Regulation 48 of SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.
5. This Circular is available at sebi.gov.in under the link “Legal → Circulars”.
Yours faithfully,
Rohit Dubey
General Manager
Department of Debt and Hybrid Securities
+91-022 2644 9510
[email protected]
