The Securities and Exchange Board of India, (SEBI), on December 31, 2024, issued a Notification regarding the Allowing subscription to the issue of Non- Convertible Securities during trading window closure period.
SEBI has clarified that trading window restrictions under the SEBI (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations), shall not apply to certain specified transactions, including acquisition through the conversion of warrants or debentures, subscription to rights issues, further public issues, preferential allotments, tendering of shares in buy-back offers, open offers, delisting offers, or other mechanisms specified by SEBI. Additionally, as per the SEBI Circular dated July 23, 2020, these exemptions extend to Offer for Sale (OFS) and Rights Entitlements Transactions. SEBI has further decided to exempt subscriptions to the issue of non-convertible securities, provided they comply with specified frameworks. Stock Exchanges are instructed to inform listed companies of these provisions and publish the circular on their websites. This update aims to simplify compliance and expand exemptions under the PIT Regulations.
[Notification No. SEBI/HO/ISD/ISD-PoD-2/P/CIR/2024/180]
