SEBI Aims to Simplify Compliances for Non-Convertible Securities, Proposes Shorter Record Date Intimation

Consultation Paper; Dated: 16.08.2024

SEBI has released a Consultation Paper proposing measures to enhance the ease of doing business and streamline compliance requirements for Non-Convertible Securities (NCS). SEBI proposes to reduce the timeline for intimation of a record date to stock exchanges by an entity having listed non-convertible securities from at least 7 working days to at least 3 working days.

Further, SEBI proposes aligning the provisions regarding the approval and authentication of financial results for entities with listed NCS with those applicable to equity-listed entities. Also, SEBI proposes aligning the provisions for the disclosure of fraud/default with respect to price-sensitive information for entities having listed non-convertible securities with those of equity-listed entities under Schedule III of the LODR.

Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, prescribes the disclosure of events and information that have a bearing on the price of securities. Also, SEBI proposes relaxing the restrictions on International Securities Identification Numbers (ISINs) for unlisted securities that were outstanding as on December 31, 2023, if those ISINs are subsequently listed. Comments on these proposals may be submitted by September 6, 2024.

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