The Hindu Business Line : SEBI to finalise listing agreement norms for debt securities

THE Securities and Exchange Board of India (SEBI) Board may take a final call on a model listing agreement on debt securities at its forthcoming meeting on Saturday.

The capital market regulator had in December last year announced that a separate listing agreement for privately placed debt securities would be finalised.

Till such time a new listing agreement was finalised for debt securities, the SEBI had permitted the issuance process to continue so long as the issuer companies furnish an undertaking to the stock exchanges that they would sign the Listing Agreement for debt securities as soon as it comes into force.

The capital market regulator had also then mandated that the privately placed debt securities be issued in demat form. SEBI's September 2003 directive for listing of privately placed debt securities in stock exchanges was applicable to all listing companies that have any of their securities offered through an offer document - through a public issue.

Even unlisted companies/ statutory corporations/other entities were allowed to get their privately placed debt securities listed in the stock exchanges so long as they complied with the prescribed norms of the SEBI circular.

Official sources said here that the Ministry of Company Affairs has "reserved its comments" on the matter of listing of privately placed debt securities. Besides considering a revision in the various limits, including the creeping acquisition limit, under the takeover code, the SEBI Board may also discuss the recently submitted Malegam report on disclosure requirements in offer documents.

The 326-page report had made recommendations on various areas of disclosures including standardisation of disclosure requirement in offer document, format of abridged prospectus and format of issue advertisements etc.

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