SEBI Introduces Liquidity Window to Boost Early Redemption of Debt Securities
- News|Blog|Company Law|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 18 October, 2024
Latest from Taxmann
Circular No. SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2024/141, Dated: 16.10.2024
SEBI has introduced a Liquidity Window facility for debt securities, allowing issuers to offer put options for investor redemption prior to the maturity date. This framework, governed by Regulation 15 of the SEBI (NCS) Regulations, 2021, aims to enhance liquidity in the corporate bond market, especially for retail investors. The Liquidity Window facility can be provided only for prospective issuances of debt securities through a public issue process or on a private placement basis.
The issuer must ensure that the Liquidity Window facility provided has the prior approval of its Board of Directors. The issuer must specify the eligibility of investors who can avail of the Liquidity Window facility, i.e. whether the facility shall be available to all investors in debt securities or only to retail investors in debt securities.
Further, the issuer must provide this facility only after the expiry of one year from the date of the issuance of the debt securities. Re-issuances must not be permitted under the ISINs in which the liquidity window facility is offered. The issuer may designate one of the stock exchanges as the ‘Designated Stock Exchange’ for the purpose of a liquidity window facility.
Also, the liquidity window must be kept open for 3 working days. The liquidity window may be operated on a monthly/quarterly basis at the discretion of the issuer. The schedule of the liquidity window must be disclosed upfront in the offer document. The circular shall be applicable on and from November 1, 2024.
Click Here To Read The Full Circular
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
