The Securities and Exchange Board of India, (SEBI) on July 03, 2024, issued a notification regarding the Reduction in denomination of debt securities and non-convertible redeemable preference shares.
Modification to Chapter V of the Master Circular for issue and listing of Nonconvertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper dated May 22, 2024.
The following has been stated-
•In Clause 1.1, after the words “shall be Rs. One lakh”, the words “except as provided in Clause 1.3 below” shall be inserted.
•Clause 2.1 of Chapter V of the Master Circular will stand deleted. The same is reproduced below: “The face value of a listed debt security or non-convertible redeemable preference share issued on private placement basis traded on a stock exchange or OTC basis shall be Rs. One lakh.”
•Clause 2.3 of Chapter V of the Master Circular shall be modified as under: “Trading lot of listed debt security issued on private placement basis, nonconvertible redeemable preference share issued on private placement basis, listed security mentioned under Chapter V of SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 and Chapter XIII of the Master circular dated May 22, 2024, traded on a Stock Exchange or OTC basis shall always be equal to face value.”
•The provisions of this circular shall be applicable to all issues of debt securities and non-convertible redeemable preference shares, on a private placement basis that are proposed to be listed from the date of issuance of this circular.
[Notification No SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2024/94]
