SEBI Eases Regulations For Issuing Non-Convertible Debentures

The Securities and Exchange Board of India on Thursday introduced new norms for non-convertible debentures aimed at simplifying the public issue process and reducing compliance burdens.

The market regulator has reduced the public comment period for draft offer documents. For issuers with listed securities, the period is now one day, while for others, it's reduced to five days. This measure is intended to accelerate the approval process for public issues of NCDs and NCRPS, SEBI explained after the board meeting.

SEBI has also cut the minimum subscription period for NCDs from three working days to two. SEBI mentioned, This change is designed to facilitate quicker fundraising for issuers, it said.

The listing timeline for debt securities, including NCDs, has been shortened to T+3 working days. This reduced timeline will initially be optional for one year and mandatory thereafter, SEBI said.

SEBI has also revised disclosure requirements by removing the need to disclose the permanent account number and personal address of promoters in the offer document. This aims to simplify documentation for issuers.

Issuers are now allowed to advertise public issues of NCDs electronically. The advertisement must include a window advertisement in newspapers with a QR code and a link to the full advertisement. This offers issuers flexibility in advertising while ensuring the information reaches potential investors, the market regulator said.

These revisions are part of SEBI's broader plan to make the issuance process for debt securities more efficient and accessible for both issuers and investors.