The Securities and Exchange Board of India (SEBI) vide its circular no. SEBI/HO/DDHS/P/CIR/2021/613 dated August 10, 2021, consolidated existing procedures pertaining to issue and listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper (Operational Circular).
Further, to bring uniformity in requirements and based on feedback from market participants, SEBI vide its Circular dated December 17, 2021 has made the following amendments to the Operational Circular, pertaining to listing of Commercial Paper:
Brief synopsis of the SEBI Circular is as follows:-.
| REGULATORY UPDATES – First Information Report (FIR) | ||
| Introduction | Operational Circular for issue and listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper (“Operational Circular”) | |
| Law/ Regulator | Securities and Exchange Board of India | |
| Date of Issue | December 17, 2021 | |
| Date of Applicability | The provisions of this circular shall come into effect immediately | |
| Subject | Revision to Operational Circular | |
| Brief synopsis | Previous law/Regulation | Current law/Regulation |
| Issue Information:
4.1. Details of current tranche including ISIN, amount, date of issue, maturity, all credit ratings including unaccepted ratings, date of rating, name of credit rating agency, its validity period (details of credit rating letter issued not older than one month on the date of opening of the issue), details of issuing and paying agent and other conditions, if any. |
Paragraph 4.1 shall stand modified as follows: “Details of current tranche including ISIN, amount, date of issue, maturity, all credit ratings including unaccepted ratings, date of rating, name of credit rating agency, its validity period, declaration that the rating is valid as at the date of issuance and listing, details of issuing and paying agent and other conditions, if any.”
In future the Company shall submit a declaration that “the rating is valid as on date of issuance and listing”. |
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| NA | A new paragraph 4.5 be inserted as follows:
An issuer who has been in existence for less than three years, shall file a disclosure that the issue is only for QIBs. |
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| 5. Financial Information:
5.1. Audited/ limited review half yearly consolidated (wherever available) and standalone financial information (profit & loss statement, balance sheet and cash flow statement) along with auditor qualifications, if any, for last three years along with latest available financial results. |
Paragraph 5.1 shall stand modified as follows: The issuer in existence for three years and above: “Audited/ limited review half yearly consolidated, if any, and standalone financial information (Profit & Loss statement, Balance Sheet and Cash Flow statement) along with auditor qualifications, if any, for last three years along with latest available financial results.” The issuer in existence less than three years: “Audited/ limited review half yearly consolidated (wherever available) and standalone financial information (Profit & Loss statement, Balance Sheet and Cash Flow statement) along with auditor qualifications, if any, pertaining to the years of existence” |
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CIRCULAR No. SEBI/HO/DDHS/P/CIR/2021/0692, Dated: December 17, 2021
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