System for Making Application to Public issue of Debt Securities

Posted: 06/08/2012 in Circulars, SEBI
Tags: , , , , , , ,

CIRCULAR, CIR. /IMD/DF-1/20/2012 dated July 27, 2012

To

All Recognized Stock Exchanges

All Registered Merchant Bankers

All Registered Registrars to an Issue

All Registered Bankers to an Issue

All Depositories

1. Regulation 10 of the SEBI (Issue and Listing of Debt Securities) Regulations, 2008 (the “SEBI Debt Regulations”) provides that:

“An issuer proposing to issue debt securities to the public through the on-line system of the designated stock exchange shall comply with the relevant applicable requirements as may be specified by the Board.”

2. Regulation 31(2) of SEBI (Issue and Listing of Debt Securities) Regulations, 2008 provides that:-

In particular, and without prejudice to the generality of the foregoing power and provisions of these regulations, such orders or circulars may provide for all or any of the following matters, namely:

Electronic issuances and other issue procedures including the procedure for price discovery….”

3. In view of the above, in order to facilitate a system for making online applications for public issue of debt securities and to reduce the timelines of the issue process for public issue of debt securities, it has been decided to:

a. Extend ASBA facility to public issues of debt securities; and

b. Provide option for subscribing to debt securities through an online internet interface with a facility to make online payment.

c. Apply the timelines for the issue process as provided in SEBI Circular CIR/CFD/DIL/1/2011 dated April 29, 2011 or as notified by SEBI from time to time.

4. The detailed procedure for providing the above facilities is laid out in Annexure to this circular. The circular shall be applicable with immediate subject to putting in place necessary systems and infrastructure by the stock exchanges.

5. Recognized Stock Exchanges are directed to:

a. Comply with the conditions laid down in this circular

b. Put in place necessary systems and infrastructure for implementation of this circular.

c. Make consequential changes, if any, to the bye-laws of the Exchange as may be applicable and necessary.

d. Communicate to member brokers/ sub-brokers and create awareness amongst them about their roles and responsibilities in such issues.

6. Depositories, Merchant Bankers and Registrars are directed to:

a. Comply with the conditions laid down in this circular

b. Put in place necessary systems and infrastructure for implementation of this circular.

c. Create awareness among issuers and investors about the various modes available for making applications

7. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 31(2) of SEBI (Issue and Listing of Debt Securities) Regulations, 2008.

8. This circular is available on SEBI website at www.sebi.gov.in under the category “Legal Framework” and under the drop down “Corp Debt Market”.

Yours faithfully,

Maninder Cheema

Deputy General Manager

+91-22-2644-9754

maninderc@sebi.gov.in

Annexure

Click here to download the complete text of the above Circular in PDF Format- System for Making Application to Public Issue of Debt Securities- Jul 27, 2012.

Source: Securities and Exchange Board of India.

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