Posts Tagged ‘Securities’


CIRCULAR, CIR/IMD/FIIC/1/2013, dated January 01, 2013

To

All Foreign Institutional Investors

through their designated Custodians of Securities

1. SEBI vide circular CIR/IMD/FIIC/1/2012 dated January 03, 2012 had provided the facility of re-investment of up to two years from the date of the circular or to the extent of twice the size of the debt portfolio, to those FIIs and sub-accounts that had already acquired limits and/or invested in debt in the manner prescribed in the said circular. The facility of reinvestment period was not allowed for all new allocations of debt limits to FIIs/subaccounts after the issuance of the said circular.

2. SEBI vide circular CIR/IMD/FIIC/22/2012 dated November 07, 2012 had stated that beginning January 01, 2014, the FIIs/Sub-Accounts could re-invest during each calendar year to the extent of 50% of their debt holdings at the end of the previous calendar year. It is clarified that from January 01, 2014 onwards, the circular CIR/IMD/FIIC/22/2012 dated November 07, 2012 will be applicable uniformly to all FIIs investing in debt securities irrespective of whether the FII had acquired limits/made investments before January 03, 2012 or not.

3. In light of the representations received and in order to provide operational flexibility to those FIIs/ sub-accounts which did not hold any debt investment limits as on January 03, 2012 and purchased debt investment limits thereafter, it has been decided that they shall be allowed a cumulative re-investment facility to the extent of 50% of their maximum debt holding at any point of time during the calendar year 2013.

4. To illustrate, an example is given below:

An FII/ Sub-Account “XYZ” did not hold any debt investment limits as on January 03, 2012. It had purchased fresh debt limits on January 07, 2012. The following table gives the particulars of XYZ’s transactions in debt securities:

Step

Buy

Sell

Current

Holding

Maximum

holding at

any point

of time

during the

calendar

year

Value

of sale

which FII/SA

can make

without losing

its investment

limits

Cumulative

sale by the

FII/SA during

the calendar

year

Value of

sale which

can be

further

made by

FII/SA

without

losing limit

1

(On

Jan 07,

2012)

1000

0

1000

1000

500

0

500

2

0

500

500

1000

500

500

0

3

6000

0

6500

6500

3250

500

2750

4

1000

0

7500

7500

3750

500

3250

5

0

3000

4500

7500

3750

3500

250

6

600

0

5100

7500

3750

3500

250

7

5000

0

10100

10100

5050

3500

1550

8

0

1550

8550

10100

5050

5050

0

9

450

0

9000

10100

5050

5050

0

10

1100

0

10100

10100

5050

5050

0

All figures in INR cr

 5. From January 01, 2014, the re-investment facility as indicated in the SEBI circular CIR/IMD/FIIC/22/2012 dated November 07, 2012 would be available during each calendar year to those FIIs which hold debt investments as on December 31 of the previous calendar year.

6. In respect of those FIIs which do not hold any debt investments as on December 31 of the previous calendar year, the re-investment facility given at Para 3 of this circular would be available during each calendar year.

7. It is further clarified that the re-investment facility for those FIIs/ sub-accounts having debt limit prior to January 03, 2012, will remain available till December 31, 2013 in terms of the SEBI circular dated January 03, 2012.

8. The re-investment period, i.e. 5 working days for Government Debt and 15 working days for Corporate Debt shall remain the same as per the SEBI Circular CIR/IMD/FIIC/18/2010 dated November 26, 2010.

This circular shall come into effect immediately.

This circular is issued in exercise of powers conferred under SEBI Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

A copy of this circular is available at the web page “F.I.I.” on our website www.sebi.gov.in. The custodians are requested to bring the contents of this circular to the notice of their FII clients.

Click here to download the complete text of the above Circular in PDF Format.

Source: Securities and Exchange Board of India.


Addendum to Circular No. CIR/MRD/DP/21/2012 dated August 02, 2012 on activation of ISIN in case of additional issue of shares/ securities

CIRCULAR, CIR/MRD/DP/ 24 /2012, dated September 11, 2012

To,

The Depositories,

The Stock Exchanges

1. Please refer to SEBI circular CIR/MRD/DP/21/2012 dated August 02, 2012 on activation of ISIN in case of additional issue of shares/ securities.

2. In partial modification, the earlier point 3 and 5 of the aforesaid circular shall be replaced as under –

“3. Further, in order to curtail the transfer of additional issue of shares / securities including by way of further public offerings, rights issue, preferential allotment, bonus issue etc of the listed company, prior to receipt of final listing / trading approval, the depositories shall devise a mechanism so that such new securities created shall be frozen till the time final listing/ trading permission is granted by the exchange.”

“5. The stock exchanges are advised to provide the details to the depositories whenever final listing / trading permission is given to securities. Further, in case of issuance of equity shares by a company, listed on multiple stock exchanges, the concerned stock exchanges shall synchronize their effective dates of listing /trading approvals and intimate the same to depositories in advance.”

3. The Depositories are advised to:-

a) make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary;

b) bring the provisions of this circular to the notice of their DPs and also to disseminate the same on their website.

4. This circular is being issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 and section 19 of the Depositories Act, 1996 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.

Click here to download the complete text of the above Circular in PDF Format- Addendum to Circular No. CIR/MRD/DP/21/2012 dated August 2, 2012- Sep 11, 2012.

Source: Securities and Exchange Board of India.


Redressal of Investor Grievances against Listed Companies in SEBI Complaints Redress System (SCORES).

CIRCULAR, CIR/OIAE/1/2012, dated August 13, 2012

All Companies whose securities are listed on Stock Exchanges

(through Stock Exchanges)

All recognized Stock Exchanges

SEBI had issued Circular No.CIR/OIAE/2/2011 dated June 3, 2011 regarding commencement of SEBI Complaints Redress System (SCORES) and advising all companies whose securities are listed on various stock exchanges to comply with the provisions of the said circular.

1. In this regard, all companies whose securities are listed on stock exchanges, are hereby advised to obtain SCORES authentication by September 14, 2012 in terms of the aforesaid circular.

2. All companies against whom complaints are pending on SCORES, shall take appropriate necessary steps within 7 days of receipt of complaint by the concerned company through SCORES, so as to resolve the complaint within 30 days of receipt of complaint and also keep the complainant duly informed of the action taken thereon.

3. In case of failure to comply with the above, SEBI would be constrained to initiate enforcement actions as per the law as may be deemed appropriate.

4. The Stock Exchanges are accordingly advised to bring the provisions of this Circular to the notice of all the companies whose securities are listed in the exchange and also to disseminate the same on the website.

5. This Circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

6. This Circular is available on SEBI website at www.sebi.gov.in.

Click here to download the complete text of the above Circular in PDF Format- CIRCULAR, CIR/OIAE/1/2012, dated August 13, 2012.

Source: Securities and Exchange Board of India.


CIRCULAR, CIR/MRD/DP/ 21 /2012, dated August 02, 2012

To,

The Depositories,

The Stock Exchanges

1. Please refer to SEBI circular No SEBI/MRD/DEP/Cir-2/06 dated January 19, 2006.

2. In addition to the above circular, it has now been decided that in case of IPO for debt securities the ISINs shall be activated only on the date of commencement of trading on the stock exchange.

3. Further, in order to curtail the transfer of additional issue of shares/securities viz. further public offerings, rights issue, preferential allotment and bonus issue of the listed company, prior to receipt of final listing/ trading approval, it has been decided that the depositories shall devise a mechanism so that such new securities created shall be frozen till the time final listing/ trading permission is granted by the exchange.

4. In order to achieve the above, the Depositories are advised to allot such additional shares/securities under a new temporary ISIN which shall be kept frozen. Upon receipt of the final listing/ trading permission from the exchange for such additional shares/ securities, the shares/securities credited in the new temporary ISIN shall be debited and the same would get credited in the preexisting ISIN for the said security. Thereafter, the additional securities shall be available for trading.

5. The exchanges are advised to provide the details to the depositories whenever final listing/trading permission is given to securities.

6. The Depositories are advised to:-

a) make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary;

b) bring the provisions of this circular to the notice of their DPs and also to disseminate the same on their website; and

7. This circular is being issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 and section 19 of the Depositories Act, 1996 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.

Harini Balaji

Deputy General Manager

022-26449372

harinib@sebi.gov.in

Click here to download the complete text of the above Circular in PDF Format- Activation of ISIN in case of additional issue of shares/ securities.

Source: Securities and Exchange Board of India.

 

 

 


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.