SEBI updates rules to ease the debt securities issuers' disclosure structure
ease of doing business. At the time of the initial offering, a General Information Document (GID) including the details and disclosures listed in the common schedule will be lodged with the stock exchanges.
According to a notification by SEBI, the GID will be valid for a year. For subsequent private placements of non-convertible securities or commercial papers made within the validity period, only a Key Information Document (KID) detailing important modifications will need to be filed with the stock exchanges.
If the financial data in the general information sheet is older than six months, KID includes that data as well. According to a notification released on Thursday, SEBI stated that the concept will initially be made applicable on a "comply or explain" basis until March 31, 2024, and mandatory thereafter.
The new regulations are designed to ensure parity between the initial disclosures that must be disclosed in a placement memorandum for a private placement of non-convertible securities that are proposed for listing and a prospectus for a public offering of debt securities or non-convertible redeemable preference shares. A plan put forward to adopt a single schedule for disclosures was approved by SEBI in an effort to ensure parity in the disclosures that must be given in a prospectus for the public issue of debt instruments or non-convertible redeemable preference shares.
The NCS (Issue and Listing of Non-Convertible Securities) rules have been modified in this manner by the Securities and Exchange Board of India (Sebi), and the new regulations are effective as of this Thursday. Sebi holds ‘fit and proper’ ruleGet the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
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