SEBI Mulls Exemptions For Non-Convertible Securities From Trading Window Restrictions

Indian markets regulator—Securities and Exchange Board of India—on Thursday proposed to exempt subscriptions to non-convertible securities, from trading window restriction norms in aqna attempt to enhance the ease of doing business.

SEBI noted that non-convertible debentures fall under the broader category of non-convertible securities as defined by its regulations. These securities are already subject to strict disclosure requirements and shareholder approval, which make them suitable for exemption from trading window restrictions.

SEBI mentioned that these securities are a pre-determined event, governed by specific regulations.

The NCS category also includes non-convertible redeemable preference shares, perpetual non-cumulative preference shares, perpetual debt instruments, and other securities as specified by SEBI.

The regulator has called for public feedback on two key points by Oct 17 and has asked if subscriptions to NCS should be exempt from trading window restrictions, and if any other transactions that meet SEBI’s guiding principles should also be exempt, with appropriate rationale.

This proposal is part of SEBI's ongoing efforts to simplify market regulations while maintaining transparency and accountability.