A. Background

1. SEBI (Issue and Listing of Non Convertible Redeemable Preference Shares) Regulations, 2013 (NCRPS Regulations), provided a framework for listing of Perpetual Non-Cumulative Preference Shares (PNCPS) and Perpetual Debt Instruments (PDIs) issued by banks.

2. RBI vide circular dated September 01, 2014 on the “Implementation of Basel III Capital Regulations in India – Amendments” has inter-alia allowed banks to issue Additional Tier 1 (AT1) instruments to retail investors. Further, RBI vide its Master Circular on Basel III Capital Regulations dated July 1, 2015 has also specified additional disclosure requirements for PNCPS and PDIs. It was felt that the retail investors may not fully appreciate the characteristics of these instruments and therefore, in view of same, a need was felt to look into the aspect of prescribing additional disclosure norms for retail issuance of PNCPS and PDIs.

B. Recommendations of Corporate Bonds and Securitization Committee (CoBoSAC):

Corporate Bonds and Securitization Committee (CoBoSAC), inter-alia, deliberated on the additional requirements and disclosures to be made by banks for retail issuance of AT1 instruments. Based on the recommendations of CoBoSAC, the proposals for public comments are as follows.

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