Mumbai, Nov 19: Securities and Exchange Board of India (SEBI) has issued a draft agreement on a separate listing pact for debt, including privately placed instruments and disclosures based on provisions of the Companies Act. The agreement would be applicable to listing of all debt securities irrespective of mode of issuance -- public issue or private placement, SEBI said in its draft agreement placed for discussion.
The information disclosures would be similar to those applicable for listing of equity shares and corporates would have to adhere to all the clearing and settlement processes prescribed by the exchanges, it said.
On issue of book closure and interest payment, SEBI said the companies should inform exchanges at least 15 days in advance about the book closures and redemption of instruments.
The issuers are barred from charging any fees exceeding those agreed with the stock exchange for transactions relating the debt securities. They should also provide information on top 50 investors of the specific instrument, it added.
The debt issuing entities should communicate about major changes in the nature of business, including plans for technical tie-up, financial and marketing agreements, it said.
The corporates should inform about steps taken to restore normalcy in times of crisis to enable security holders and the public to appraise the position and avoid a false market in its securities.
The companies should also promptly inform about the impact on the pricing of products and services due to changes in the regulatory framework, it said.
Bureau Report