The Bombay Stock Exchange (BSE) on April 28, 2023, issued a circular regarding the Framework on Contribution by eligible Issuers of debt securities to the Settlement Guarantee Fund
This has a reference to the SEBI Circular No. SEBI/HO/DDHS/DDHS-RACPOD1/CIR/P/2023/56 dated April 13, 2023, granted recognition to AMC Repo Clearing Limited as a Limited Purpose Clearing Corporation and mandated upfront collection of amounts from eligible issuers of debt securities towards the Settlement Guarantee Fund of the LPCC
The Issuers are requested to take note and comply with the following namely: -
• The criteria to determine eligible issuers, the manner of calculation of the amount of Settlement Guarantee Fund (SGF), etc. have been prescribed by ARCL vide their Circular dated April 26, 2023.
• List of Eligible Issuers along with types of securities/instruments required to pay the Settlement Guarantee Fund of the LPCC shall be available on the website of ARCL at www.arclindia.com.
• Eligible issuers of non-convertible debt securities with a fixed maturity period in terms of the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021 shall be required to comply with this requirement.
• The aforesaid requirement shall be applicable to all issues opening on or after May 01, 2023, for a private placement of debt securities and offer documents filed on or after May 01, 2023, in case of public issue of debt securities, by such eligible issuers specified by the LPCC.
• Eligible Issuers are required to deposit the requisite amount towards the Settlement Guarantee Fund of the LPCC in any of the mentioned accounts being maintained by AMC Repo Clearing Limited (ARCL)
• The aforesaid payment is required to be made by the eligible issuers prior to the allotment/listing of debt securities. The details of such payment along with UTR number, bank details, date of payment, etc., and the acknowledgment of receipt of funds by ARCL to the Issuer shall be submitted by the Issuer at the time of seeking final listing of debt securities to the Exchanges where non-convertible debt securities are proposed to be listed.
[Notification No. 20230428-18]
