SEBI issues consultation paper on introducing framework of Schemes of Arrangement for entities that have listed only debt securities/NCRPS’

May 21, 2022 | by TeamLease RegTech Legal Research Team

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Secretarial ComplianceThe Securities and Exchange Board of India (SEBI) on May 20, 2022 has issued Consultation paper on introducing framework of Schemes of Arrangement for entities that have listed only debt securities/NCRPS’.

The following has been stated namely: -

• When a listed issuer undergoes restructuring, it impacts investors, irrespective of the security invested in. Hence a holder of debt securities/NCRPS’ is impacted as much as a holder of specified securities; this necessitates affording a similar protection to the former. Based on discussions with a few issuers of listed debt securities/NCRPS’ who, in the past, have been involved in schemes of arrangement, it is gathered that a framework in this regard would be immensely beneficial. It would not only bring clarity to the applicable procedures but may also save legal costs for the entity.

• It is proposed to bring about a regulatory framework providing for schemes of arrangement for only debt listed entities in the Listing Regulations.

Public comments are invited for the proposed framework for Schemes of Arrangement for entities that have listed only debt securities/NCRPS’. The comments/suggestions may be provided as prescribed.

Comments as per aforesaid format may be sent to the following, latest by June 19, 2022 at [email protected], [email protected] and [email protected]


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